Sharia Securities List

Introduction to Sharia Securities List

Sharia securities list are a collection of securities that do not in contrary with Sharia principles in Capital Markets, which is endorsed by Bapepam-LK or party approved by Bapepam-LK. The list is an investment guidance for sharia mutual funds in selecting their portofolios. It can also be used by investors who wish to invest in sharia securities portfolios.

The sharia securities list issued by Bapepam-LK can be categorized in two types, as follows:

1. The Periodic Sharia Securities List (PSSL)
   PSSL is published periodically at the end of May and November each year. The first of PSSL was published by Bapepam-LK in 2007.
2. The Incidental Sharia Securities List (ISSL)
   ISSL is published irregularly. ISSL is issued for the following purposes, among others:
   • Determination of shares that are in compliance with the criteria of Islamic sharia securities, issued simultaneously with the effective registration statement of the company conducting initial public offering or the registration statement of the Public Company.
   • Determination of shares of the Issuer and or Public Companies that are in compliance with the criteria of Islamic securities, based on periodic financial reports submitted to Bapepam-LK after the publication of PSSL.

Securities that may be included in Sharia Securities List established by Bapepam-LK including:

1. Islamic Goverment Securities issued by the Government of Indonesia goverment.
2. Securities issued by the Issuer or Public Company stating that the business activities and management based on sharia principles, as stated in the Issuer or Public Company Charter.
3. Sukuk issued by the Issuer, including Islamic bonds already issued by the Issuer prior to the enactment of Bapepam-LK regulation.
4. Share of Sharia Mutual Fund.
5. Participation Units of Collective Investment Contract of Sharia Mutual Fund.
6. Sharia Asset Backed Securities.
7. Share typed securities, including Islamic Preemptive Rights (ER) and the Islamic Warrants, issued by the Issuer or Public Company which does not state that the business activities and management are based on sharia principles, as long as the company or Public Company:
   1. do not conduct the business activities as stated in item 1 letter b of the Regulation No. IX.A.13;
   2. meet the financial ratios as follows:
      1. the total of interest-based debt compared to total asset no more than 45% (forty five percent);
      2. total interest income and other illegitimate (non-halal) income compared to total operating revenue and other income no more than 10% (ten percent);
8. Securities that meet sharia principles in the Capital Market issued by International Organizations in which the Government of Indonesia as one of the members; and
9. Other sharia securities.