Financial Services Authority, November 28, 2016: The Board of Commissioners of the Financial Services Authority (OJK) has issued a decree No. Kep-56/D.04/2016 on Sharia Securities List that will take effect on December 1, 2016.
The Sharia Securities List serves as an investment guide for its users, such as investment managers that manage Sharia mutual funds, Sharia insurance products and investors interested in investing in Sharia securities portfolio. The list is also a reference for Sharia index providers, such as Indonesia Stock Exchange that publishes Jakarta Islamic Index (JII) and Indonesia Sharia Stock Index (ISSI).
The decree was issued based on results of OJK's regular review on financial statements released by Issuers and Public Companies, supporting data and information, and the previous Sharia Securities List.
The Sharia Securities that have entered the Sharia Securities List (DES) include 345 securities in the Issuers and Public Companies category and the other Sharia Securities category. This is the highest DES number ever recorded in the list's history.
Among the 345 stocks in the Issuers and Public Companies category, three of them came from Sharia entities. The other 342 are stocks of Issuers and Public Companies that have fulfilled the criteria for Sharia Stocks, as referred to in Regulation No. II.K.1 on Criteria for and Publication of Sharia Securities List, although those issuers and public companies do not state that their business activities and management are carried out in compliance with Sharia principles.
In regard to the Issuers and Public Companies that do not state that their business activities and management are carried out in compliance with Sharia principles, the OJK conducted its review on them by studying their Financial Statements for the period ended June 30, 2016, and other supporting data, i.e. written data from Issuers or Public Companies that the OJK had received by November 15, 2016.
Out of the 345 stocks, 87 (25.2 percent) of them came from the Trade, Services, and Investment sector, making the sector the most dominant one in the Sharia Securities List (DES). The second biggest sector is Property, Real Estate and Building Construction, with 58 stocks (16.81 percent) of such companies join the list, followed by the Basic and Chemical Industries sector as 52 stocks (15.07 percent) of such industries enter the latest DES.
The OJK periodically publishes the Sharia Securities List, at the end of May and at the end of November, and the updated list will be effective on June 1 and November 1. In May 2016, 321 securities were featured in the DES.
Moreover, on ad hoc basis, the Sharia Securities List is updated whenever there is an Issuer or a Public Company whose Registration Statement has become effective and its stock has fulfilled the criteria for Sharia Securities, or when Issuers or Public Companies make corporate actions, or have information or material facts that might make them satisfy or not satisfy such criteria.
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For more information:
Fadilah Kartikasasi, Director of Sharia Capital Market Supervision
Tel +62 21 2960 0000 Email fadilah.kartikasasi@ojk.go.id. www.OJK.go.id
