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Indonesia’s Islamic securities list increases to 345 companies
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Financial Services Authority (OJK) chairman Muliaman D. Hadad gives closing remarks at the OJK International Conference on Islamic Finance in Jakarta on Sept. 29. The conference covered effective strategies to address future challenges, fostering Islamic finance needs and fueling further expansion, growth and development in the sector. (JP/Dana Wardhana)
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he Financial Services Authority (OJK) has featured 354 public companies on an updated Islamic securities list (DES), compared with 321 on the previous list, which will become effective after Dec. 1, an OJK executive said on Monday.
OJK sharia capital market director Fadilah Kartikasasi said 11 stocks, including state-owned Jasa Marga, were removed from the list mostly because of increasing debt ratio. The list requires the current debt to equity ratio to not exceed 45 percent.
She added that the OJK had added 31 new companies, including the newly listed Cikarang Listrindo, Protech Mitra Perkasa and Duta Intidaya, to the DES as the companies fulfilled sharia principles.
DES is a collection of securities that do not contradict sharia principles in the capital market, as set by the OJK. The list is an investment guide for sharia mutual funds in placing managed funds, and can also be used by investors interested in investing in an Islamic securities portfolio.
"This number is the highest ever in the sharia stock list history," Fadilah stated.
She said that with higher stocks on the list, sharia investment managers would have more options. That would support the sharia mutual fund industry, she added.
The total net asset value of sharia mutual funds increased by 9.35 percent year-to-date to Rp 12.04 trillion (US$889.88 million) in 2016. (dan)
