Sharia stocks are stock that not contrary to Islamic principles in the Capital Market. The definition of stocks in the context of sharia stocks refers to the definition of stocks in general as stipulated in the laws and regulations of OJK.
Stocks that listed as sharia stocks by Islamic issuers or Islamic public companies based on OJK regulation no. 17/POJK.04/2015 concerning Issuance and Requirement Sharia Securities in Shares by Sharia Issuers or Sharia Public Companies
Stocks that meet the criteria of sharia stocks based on OJK regulation no. 35/POJK.04/2017 concerning Criteria and Issuing List of Sharia
Sharia shares that listed in Indonesian Islamic Capital Market, either listed on the exchange or not, are incorporated into the List of Sharia Securities (DES) issued by Financial Services Authority (OJK) on a regular basis, every May and November. Currently, the criteria for selection of Islamic shares by OJK are as follows:
1. The company does not conduct any business activities as follows:1. Gambling and games considered as gambling;
2. Trading that is prohibited according to Islamic law, such as:
- Trading that is not followed by delivery/transfer of products and or services;
- Trading with a fake offer or demand;
3. Ribawi financial services, such as:
- interest-based bank; and
- interest-based finance company;
4. Buying and selling of risks that involve speculation (gharar) and gambling (maisir);
5. Producing, distributing, trading, and or providing:
- products or services that are forbidden because of its contents (haram li-dzatihi);
- products or services that are forbidden not because of its contents (haram lighairihi) but because they are stated forbidden by DSN-MUI;
- products or services that can deprave one’s morals and are harmful;
6. Transactions that contain elements of bribery (risywah); and
2. The company fulfil the following financial ratios:1. The ratio of interest-based liabilities to total Assets is not more than 45% (forty five percent); and
2. The ratio of interest income and other non-Islamic income to total revenue is no more than 10% (ten percent)
SHARIA STOCK INDEX
- Indonesia Sharia Stock Index (ISSI)
Stock index for all sharia shares listed on the main board and development board of the Indonesia Stock Exchange (constituent list) - Jakarta Islamic Index (JII)
A stock index consisting of 30 large-cap and high-liquidity sharia stocks (constituent list) - JII70
A stock index consisting of 70 large-cap and high-liquidity sharia stocks (constituent list) - IDX-MES BUMN 17
A stock index consisting of 17 sharia shares owned by SOEs and their affiliates with good fundamentals (constituent list)
