Sharia Webinar: Capital Market Investment in the Islamic Perspective
By: KSPM FEB UI – 11 September 2021
Prof. Dr. (H.C.) K. H. Ma’ruf Amin – Vice President of Indonesia, the Islamic capital market has existed in Indonesia since 1997, beginning with the emergence of Danareksa Syariah by PT Danareksa Investment Management. In 2001, the National Sharia Council of the MUI issued Fatwa 20/DSN-MUI/IV/2001 on guidelines for the implementation of sharia mutual fund investments to provide a foundation for the sharia capital market. Along with the development of investment product innovation, capital market investment is legally permitted as long as it is not speculative and manipulative (contains elements of gharar, maisir, and usury).
Indonesians (especially Muslims), should not hesitate to invest in the capital market as long as it complies with the criteria in the MUI DSN Fatwa. This has been emphasized in Fatwa 80/DSN-MUI/III/2011, that economic activities that are contrary to sharia principles are hiding product defects, cheating, playing with prices, hoarding goods, imbalance of goods in contracts, selling goods that are not owned, and usury.
Digital technology, which has facilitated economic transactions, has become a solution in limiting economic activity during the pandemic. This can be used as an opportunity for the community to become investors, both teenagers and adults. However, it should be noted that capital market literacy must be accompanied by investing in the capital markets in order to know the risks behind the prediction of the expected return.
Ustadz Taufiqurrahman – Head of the Data Islamic Boarding School, in the 29th verse of An-Nisa’s, it is explained that the transactions that are allowed are transactions that do not have an element of treason and must be mutually beneficial in the contract. Transactions must be carried out in full accordance with sharia principles and do not contain the slightest falsehood. Transactions must be included with caution because it is necessary to refer to the Qur’an, Hadith, and Ijma’ scholars to find out what is halal and haram.
In the book Nashaihul ‘Ibad, Imam Nawawi explains that the criteria for a halal investment are intending to increase knowledge, intending to worship, and intending to get halal sustenance. Investments that comply with sharia principles will bring good in the world and the hereafter according to the teachings of Islam.
Mang Amsi – Founder of Syariah Saham, in An-Nisa verse 9, explained that we must prepare for the good of future generations. This can be realized by investing as a means of financial preparation. The first step that can be taken in investing is to recognize the risks of investment products and adjust them to the risk personality in seeking sustenance.
In general, the risk profile according to theory can be divided into conservative, moderate, and aggressive. A conservative person is recommended to invest in sukuk. A moderate person is recommended to invest in Islamic mutual funds. An aggressive person is more recommended to invest in Islamic stocks.
Sukuk are sharia securities in the form of proof of ownership of assets. In Indonesia, the types of sukuk are divided into savings sukuk and retail sukuk. Savings sukuk have a floating rate of return, while retail sukuk are fixed. The advantages of sukuk investment are that it is in accordance with sharia principles, supports national development financing, competitive rates of return, and principal and benefits guaranteed by the state.
Sharia mutual funds are a collection of funds from a pool of investors managed by investment managers with sharia principles. Investment in this product is supervised by the Sharia Supervisory Board and is only focused on securities that are included in the Sharia Securities List.
Sharia stocks are proof of ownership and equity participation of companies that are issued and managed according to sharia principles. The criteria for shares that are in accordance with sharia principles are not conducting business activities and transactions that are contrary to sharia principles. Examples of economic activities that are contrary to sharia principles are gambling, buying and selling of uncertain risks, buying and selling goods and/or services that are materially unlawful, usury financial services, buying and selling goods and/or services that damage morals, as well as buying and selling goods and services. / or services whose processing methods are not in accordance with sharia principles. Sharia shares must also meet the criteria for interest-based debt 45% of total assets and non-halal income 10% of total income.
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