Q & A
- Q1 Is the stock trading mechanism accordance with Islamic principles?
In DSN-MUI’s fatwa No.80 concerning The Implementation of Islamic Principles in The Equity Trading Mechanism at The Stock Exchange's Regular Market, stated that the mechanism of regular market trading on the stock Exchange has fulfilled Islamic principles if securities that trade is the object which appropriate Islamic principles and does not violate 14 activity or conduct prohibited transaction.
- Q2 What is the Islamic Mutual Fund?
As well as with mutual funds in general, Islamic Mutual Funds are the best investment options which easy to understand. Investors do not need to actively manage their investments because there will be an Investment Manager who manages the investment. Investors who invest in Islamic Mutual Funds means that they give a mandate to the Investment Manager of Mutual Fund managers to represent objects in choosing investments. Unlike the non-Islamic Mutual Fund, the object of Islamic Mutual Funds must invest in accordance with Islamic securities in the Islamic Securities List (DES).
- Q3 How the selection process of a stock that can be stated accordance with the Islamic ?
Islamic stock selection process is based on two main criteria, business criteria and financial criteria. The intention of the business criteria are the criteria by type of business of each issuer. Categories of types of businesses that serve as indicators of the criteria is based on the lawful (halal) of the business, whether halal because of the substance (product) and the process. Meanwhile, from the financial criteria, Islamic stocks must have a ratio of total debt to total assets (Debt to Asset Ratio) not more than 45% and non-halal income to total income is not more than 10%.
- Q4 What kind of Islamic securities in capital market?
Currently, Islamic Securities which available in Indonesia capital market consists of Islamic stocks, Sukuk and Islamic Mutual Funds. In addition, currently we also have two Islamic stock indices, Jakarta Islamic Index (JII), which has existed since 2000 and Indonesia Indonesia Sharia Stock Index (ISSI), which was launched in 2011
- Q5 What is Islamic investment in capital market ?
Investment activities in the capital market that applies the Islamic principles both transaction mechanism and product selection. Investing in the stock market can be include Islamic investment if only trade on the Islamic stock and not do 14 transactions prohibited by DSN-MUI’s fatwa No.80 concerning The Implementation of Islamic Principles in The Equity Trading Mechanism at The Stock Exchange's Regular Market
- Q6What is Islamic Securities?
Islamic Securities is Securities as defined in Capital Market Law and its implementing regulations in which its contract and issuance method fulfills the Islamic Principles in Capital Market.
- Q7 What is Islamic Securities List (DES)?
The Islamic Securities List (DES), is a list of Securities that comply with Islamic Principles in the Capital Market, that which are stimulated by the Capital Market and Financial Institutions Supervisory Agency (BAPEPAM-LK) or other parties acknowledged by BAPEPAM-LK