Investment Reksadana Sharia on CapitalMarket in Indonesia

Abstract

Indonesia has the largest Muslim population would have a huge potential market for Islamic mutual fund investments. There are special characteristics of Islamic investing, including in the capital markets sector. These limits is the suitability of an investment product on the principles of Islamic teachings. National Sharia Council (DSN) an institution under the MUI (Indonesian Ulama Council) which was established in 1999 has issue provisions regarding investment activities in the Islamic capital market. Provision is poured into some of the MUI on the appropriate investment activities in the Islamic investment products in the Indonesian Capital Market. In terms of stocks that are traded in stock exchange, ISE has issued a list of companies listed in the stock in accordance with Islamic sharia, or shares listed on the Jakarta Islamic Index (JII). Where shares are listed in this index have been determined by the Sharia Board. Mutual Funds in Sharia transactions are not allowed to perform acts of speculation, in which such offer gharar containing false and other speculative actions.