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Jakarta Post

Developing Indonesia as Islamic finance hub

  • Muhammad Shodiq
    Muhammad Shodiq

    Vice president, Syariah & MSME Academy head at CIMB Niaga

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Jakarta   /   Fri, November 17, 2017   /  10:32 am
Developing Indonesia as Islamic finance hub 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)

The 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 launc...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.