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Jakarta Post

Sharia-compliant investments guard against foreign influence

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, April 23 2018   /  12:34 am

Sharia-compliant investments have flourished in terms of valuation and number of investors in recent years, which could help strengthen the domestic market’s resistance to global influences.Data from the Indonesia Stock Exchange (IDX) shows that the number of sharia-compliant investors in March grew 18 percent, or by 4,245 investors year-to-date (ytd), with transactions totaling Rp 476 billion (US$34 million).This means there are currently at least 27,000 sharia- compliant investors, or 4 percent of total investors, in the capital market. The figure shows a steady increase in the past four years from only 0.7 percent in 2014. The growing presence of sharia-compliant stocks in the capital market was also underlined by the Financial Services Authority (OJK), whose data shows that over half of investments in 2016-2017 were sharia-compliant.The Sharia Economic Society (MES), which is led...