TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Developing Indonesia as Islamic finance hub
The Jakarta Islamic Index has 30 sharia shares accounting for Rp 2.1 quadrillion, 32.7 percent of market capitalization.
Change Size
A view of Bundaran Hotel Indonesia, Central Jakarta. The Jakarta Islamic Index has 30 sharia shares accounting for Rp 2.1 quadrillion, 32.7 percent of market capitalization. (Shutterstock/Andreas H)
T
he world’s financial landscape has changed fundamentally over the last few years. Islamic equity funds experienced strong growth during the second half of the 1990s. In 1996, there were 29 Islamic funds, valued at US$800 million.
To meet the increasing demand for Islamic equity investment, the International Investor of Kuwait in collaboration with the FTSE Group and the Independent Global Index Company based in London, launched the first Islamic equity index series, the FTSE Global Islamic Index Series (GIIS) at the end of 1998.
Subsequently, in February 1999 the first Dow Jones Islamic market index (DJIMI) was launched to track the performance of companies whose activities are consistent with Islamic principles in 34 countries.
The Indonesia Stock Exchange (IDX) in collaboration with PT Danareksa Investment Management launched the Jakarta Islamic Index on July 3, 2000, which aims to guide investors who want to invest their funds in Islamic financial products. The index provides investors with the stocks that can be used as a means to invest in accordance with Islamic principles.
