SHARIA CAPITAL

MARKET
Caleb Sitorus 1606897731
Muhammad Bagja Azhari 1306437896
Weronika Natalia Blaszczyk 1706102692
Capital Market and Sharia Capital
Market
■ Capital Market: Activities related with Public Offering, Trading of Securities, Public
Companies and its issuance of Securities and other institutions/professions relating
to securities (Law No.8/1995 regarding Capital Market (UUPM))
■ Sharia Capital Market: Capital Market activities stipulated in the UUPM that does not
go against Sharia Principles
Capital Market & Money Market
Similarities
■ Both Part of the Financial Market (Funding)
■ Performs the function of the parties who are in need of investments (deficit) with the
one willing to invest (surplus)
■ Have similar products which are marketable securities/commercial papers
Differences
No. Money Market Capital Market

1 Products are short term Long term

2 Main Products: Certificate of Deposit, Main Product: Bonds, Stocks and its
savings, SBI (Surat Bank Indonesia), derivatives (
Commercial Papers
3 Under Central Bank Department of Finance

4 Transactions take place in banks Transaction takes places in the Stock

Exchange

5 Low risk, low return High risk, high return

 Basic Concepts of Sharia Capital Market

Al Quran & Sunnah

Sharia (laws and rules of Allah)
Fiqh (Interpretation of Sharia by Ulamas

Muamalah
Man <-> Man
Ibadah (worship)
Everything is permitted unless it is
Man <-> Allah prohibited
Everything is prohibited -basis of Sharia Principle in the
unless permitted by Allah Capital Market
 Principles of Sharia Capital Market

Financing can only be
done on assets/business
activities that are halal,
specific and helpful, profit
sharing is a must
Money is a tool of
The akad between
exchange value, the
investor and business
revenue that the owners
owner along with all the
receive must be in the
information and activities
same currency as the one
of the business must not
used when business is
cause uncertainty/loss
done

Investors, business
Investors and business
owners and other bodies
owners must not take
should not intentionally
risks that they are beyond
disrupt the mechanism
their capabilities (maysir)
(supply & demand) of the
which will result in a loss
market
Comparison between Sharia Capital Market and
Conventional Capital Market
Parameter Conventional Capital Market Sharia Capital Market

Legal Basis -Law No.8 year 1995 (UUPM) -UUPM

-Fatwa of the DSN MUI

Stock Index -All shares in the index -Only shares of companies that conduct
business activities that are not haram

Restrictions -Certain investments -Must not contain gharar/maysir

on -Must not favor one party -Only invest in halal things
transactions -Must not be fraudulent -Must be fair
-Cautious
Products Stocks, Obligations and its -Stocks, Sharia obligations (sukuk), sharia
traded derivatives mutual funds
Instrument -Principle obligation returned to the party that is -Sukuk funds repaid
Effect owing -uses profit margin/profit
Management -Uses interest to attrack customers sharing principles in
Mudarabah/Musharakah/ijara
h/ishtishna, etc.
Guarantor -Bank guarantee -Kafalah

Dispute -Through mediation (BANI (National Arbitration -Ishalah (peace) principle,

Resolution Board of Indonesia, PN (District Court) through BASYARNAS (National
Sharia Arbitration Board),
Religious Court

Penalty -Damages/indemnity -Fines that refer to the Fatwa

-Fines cannot be unreasonable
 LEGAL BASIS

■ AL- QURAN
1. An Nisa (4):29 prohibition of eating a fellow treasure by way of vanity (batil),
except through voluntary commercial
2. Al Maidah (5): 1 an order to fulfill akad
3. Al Jumu’ah (62):10 an order to seek gift of Allah as much as possible to be
fortunate, after praying
 LEGAL BASIS

■ HADITS RASUL
1. There should not be a danger to themselves and others
2. A ban on selling something that does not exist in itself
3. The prohibition set two conditions for the sale and purchase
4. Ban the sale and purchase gharar
5. A ban on bogus deals
6. Prohibition of multiple purchases in one transaction of purchase
 LEGAL BASIS

■ Law Number 8 Year 1995 about ■ OJK (BAPEPAM-LK) as the capital

Capital Market, following its market regulator in Indonesia, has
implementing regulations some special rules related to the
Islamic capital market, as follows:
1. Regulation Number II.K.1 about
(Bapepam-LK Regulation, Government Criteria and Issuance of Sharia
Regulation, Exchange Regulation, etc). Securities List
2. Regulation Number IX.A.13 about
Issuance of Islamic securities
3. Regulation Number IX.A.14 about
Akads used in the issuance of
Islamic securities
 LEGAL BASIS
■ FATWA DSN
Fatwa Number: Fatwa Number: 40/DSN-
Fatwa Number: 33/DSN- Fatwa Number:
41/DSN-MUI/III/2004 MUI/X/2003 about 32/DSN-
MUI/IX/2002 about
about Syariah Capital Markets and the
Syariah Obligation MUI/IX/2002 about
General Guidelines for
Obligation Ijarah Application of Sharia in
Mudharabah Syariah Obligation
the Capital Market

Fatwa Number: Fatwa Number: Fatwa Number:

20/DSN- Fatwa Number:
08/DSN- 07/DSN-
MUI/IV/2000 about MUI/IV/2000 about MUI/IV/2001 about 10/DSN-
Musyarakah Mudharabah (Qiradh) Guidelines for Mutual MUI/IV/2000
Financing Financing Fund Investing For about Wakalah
Shariah

Fatwa Number: Fatwa Number:

11/DSN- 09/DSN-
MUI/IV/2000
MUI/IV/2000 about Ijarah
tabout Kafalah Financing
 LEGAL BASIS

Fatwa Number: Fatwa Number:

Fatwa Number: Fatwa Number:
70/DSN-MUI/VI/2008 71/DSN-
76/DSN-MUI/VI/2010 69/DSN-
about SBSN Ijarah about Methods MUI/VI/2008 about
Issuance of Sharia
MUI/VI/2008 about
Asset To Be Leased Sale and Lease
Securities Sharia Securities
Back

Fatwa Number: 80/DSN-

MUI/III/2011 about Fatwa Number:
Application of Sharia in 72/DSN-MUI/VI/2008 Fatwa Number:
Equity Securities Trading about Sharia Securities 66/DSN-MUI/III/2008
Mechanism In the Ijarah Sale and Lease about Syariah Warranty
Regular Stock Exchange Back

Fatwa Number: Fatwa Number

Fatwa Number:
65/DSN-MUI/III/2008 50/DSN-MUI/III/2006
71/DSN-MUI/VI/2008
about Pre-emptive about Akad
about Sale and Lease
rights of Sharia Mudharabah
Back
(HMETD Syariah) Musytarakah
SYARIAH EFFECT

■ Islamic products is that the form of the effect that the implementation regulation,
contract, how, and business activities that underlie its implementation is not
contrary to Islamic principles.
■ Which has been published in the Indonesian capital market include:
1. Stock Sharia,
2. Sukuk and
3. Mutual Fund Units of the Sharia.
Syariah Stocks

Stocks are securities proof of equity

participation in the company and with
Islamic principles recognize this
evidence of the participation of
concept as Musharaka or shirkah
shareholders entitled to receive the
activities.
results section of the company's
business.
 SYARIAH STOCKS

The business activities are not

contrary to Islamic principles as
stipulated in the regulations IX.A.13
Issuers and Public Companies which
clearly states in its charter that the
operations of the Issuer and Public
Company does not conflict with the
principles of sharia,
The ratio of total debt compared to
total equity interest based on no
more than 82%, and
Islamic stocks issued by:

Issuers and Public Companies that

The ratio of total interest income
are not stated in their statutes that
and total income is not more than
the operations of the Issuer and
the permitted total revenue and
Public Company does not conflict
total other income is not more than
with the principles of sharia yet
10%.
meet the criteria
The business activities are not contrary
to Islamic principles
gambling and games that is trading is not accompanied by the
trade with fake supply / demand;
classified as gambling; delivery of goods / services;

producing, distributing, trading

and / or provide goods or services
illicit substance (haram li-dzatihi),
goods or services are forbidden
interest-based bank; interest-based finance company;
not because of substance (haram
li-ghairihi) defined by the DSN-
MUI; and / or, goods or services
that damage morale and harmful;

transactions that contain

buying and selling of risk which contain
elements of bribery elements of uncertainty (gharar) and / or
gambling (gambling), among other
(risywah); conventional insurance;
 SUKUK

Sukuk bonds in lieu of

the term sharia Sukuk terminology: the
(islamic bonds). plural form of the word
"sakk" (Arabic) 
certificate or proof of
ownership.
Sukuk according to Bapepam-LK Number IX.A.13: "Sharia Securities in
the form of a certificate or proof of ownership of the same value and
represent a specific part (not separated or divided (syuyu '/ Undivided
share) on:
the value of
benefits on
tangible assets
(manafiul ayyan)
whether certain
existing and will
exist;

investments that
have been services (al
determined khadamat) that
(nasyath already exist or
ististmarin will exist
khashah) "

Sukuk

certain project
certain intangible
assets (maujudat
assets (ayyan
masyru 'muayyan);
maujudat);
or
Sukuk Charateristics
Not a debt, Rewards for sukuk
but the holders can be
rewarded, profit
proof of joint sharing, or margin,
ownership of in accordance with
the type of contract
an asset / used in issuing
sukuk.
project.

Each sukuk
The use of sovereign issued must have
funds should be relied upon the
used for halal issuance of asset
business activities. (underlying
asset).

Using
mudharabah,
Musharaka, Claim ownership of
the sukuk is based
murabaha, on the asset /
salam, project specific.
istishna and
Ijara
 TYPES of SUKUK
Salam Certificate.

Istishna Certificate.

Mugharasa Certificate.

Musaqa Certificate.

Muzara’a Certificate.

Musyarakah Certificate.

Murabahah Certificate.

Certificate of ownership of the leased asset.

Certificate of ownership benefits, divided into 4 types:

•Certificate of ownership over the asset's useful that already exist,
•Certificate of ownership over the asset's useful in the future,
•Certificate of ownership of a particular party services and
•Certificate of ownership for services in the future
SHARIA MUTUAL
FUNDS
Outline

■ Mutual Fund in Conventional Banking

■ Sharia Mutual Fund
■ Features of Sharia Mutual Funds
■ Types of Sharia Mutual Funds
■ Comparison Between Conventional Mutual Funds and Shariah Mutual Funds
Conventional Mutual Fund

■ Definition:

„An investment vehicle made up of a pool of money collected from many investors for
the purpose of investing in securities such as stocks, bonds, money market instruments
and other assets”.
 Sharia Mutual Fund
■ Definition:

„A joint pool wherein the investors contribute their money for the purpose of investment
to earn halal profits in strict conformity with the precepts of Islamic Shariah”
Features of Sharia Mutual Funds
■ Sharia investments in securities must be compliant with Sharia (e.g.
prohibition of riba, maysir, pursuing investments relating to haram
activities)
■ Sharia Board supevision
■ Investors share profits or losses proportionately
■ The Fund Manager works as the investment agent and manages the
investment activities on behalf of the investors’ collective investment,
against a fixed fee
■ Relationship between the Fund Manager and the Sharia Supervisory
Board
■ An Islamic Fund cannot offer a fixed return on investment (partnership)
Types of Sharia Mutual Funds

■ Money Market Funds

■ Fixed Income Funds
■ Equity Funds
■ Discretionary Funds
Comparison Between Conventional
Mutual Funds and Shariah Mutual
Funds
■ Both aim at investment. However, additional requirements for Sharia
Funds
■ Both are operated by Investment/Fund managers
■ However, the instruments selected for investment by the Fund Manager
are approved and monitored by the Shariah Advisory Board
■ Selection of investment instruments in accordance with Shariah
■ Earned profits in SMF must be halal
Thank you for your attention! 