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Jakarta Post

NU expects 83 million members to invest in sharia products

News Desk (The Jakarta Post)
Jakarta
Mon, June 20, 2016

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NU expects 83 million members to invest in sharia products Nahdlatul Ulama (NU) central board chairman Said Aqil Siradj (fifth right) poses with NU board members during the launch of Cipta NUsantara Syariah Berimbang in Jakarta on Friday. (Courtesy of http://www.nu.or.id//-)

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ndonesia’s largest Muslim organization Nahdlatul Ulama (NU) has called on all people, regardless of their religion, to invest in sharia products, and plans to mobilize 83 million of its members to become new capital market investors.

NU central board head Marsudi Syuhud said the growth in sharia-instrument investors was still below 5 percent, despite the 8 percent year-on-year average growth of sharia stock returns and 16.4 percent increase in sharia mutual funds’ net asset value (NAV).

"We invite all people to become investors given the fact that sharia-based products in the capital market offer big potential, but growth is slow," he said as quoted by tempo.co in Jakarta on Sunday.

To help boost the sharia market, NU has cooperated with Ciptadana Asset Management in launching a sharia mutual fund product, dubbed Cipta NUsantara Syariah Berimbang, which will be invested in stocks, bonds and the money market in balanced proportions.

Marsudi expressed optimism that NU would be able to market the mutual fund through its 52,282 branches in Indonesia and 14 other countries, eyeing Rp 20 trillion of NAV in one year after the product launch.

"Based on our estimations, the moderate return expectation of balanced mutual funds is around 10 to 14 percent per year," said Ciptadana investment director Irvin Patmadiwiria, commenting on the potential returns of the mutual fund product. (ags)

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