financial service authority committed to develop sharia capital market

financial service authority committed to develop sharia capital market

The Financial Services Authority (ANTARA Photo)

Jakarta, Nov 17 (Antara) - The Financial Services Authority (OJK) in the country has committed to developing sharia capital markets to improve the national financing capabilities.

"What is certain is that we are very supportive of sharia, especially since the government established the National Committee on Islamic Finance, which is directly led by the President and Vice President," Hoesen, OJK Capital Market Executive Supervisor, said here, Friday.

Currently, the OJK has several initiatives to support the development of the sharia capital market through educational programs and certification of the sharia profession, he added. The sharia-based capital market products that have been growing in the country include stocks, bonds, asset-backed securities and mutual funds, he affirmed.

Hoesen explained that sharia products in the capital market were relatively smaller than the conventional ones, but certainly it would grow in line with the needs of investors, who wanted to invest their funds in sharia products.

Meanwhile, the sharia capital market roadmap 2015-2019, published by OJK, has mentioned several main strategies to develop a sharia capital market, namely, strengthening regulation, increasing supply and demand, developing human resources and information technology, promotion and education, and synergy with related parties.

Earlier, the Indonesia Stock Exchange (IDX) made a visit to the Dubai Financial Market (DFM) in the United Arab Emirates to understand the trading activities of the sole sharia-based capital market in the world.

The IDX visit to DFM was also for exchange of knowledge for the development of the sharia capital market in Indonesia. It is expected that the Indonesian sharia capital market will connect with the world`s sharia capital market.

Tito Sulistio, IDX President Director, is optimistic that Indonesia`s sharia capital market will continue to grow.

The potential is indicated by the movement of the Indonesia Sharia Shares Index (ISSI), which increased by 28.1 percent in the June 2016-June 2017 period.

Meanwhile, the growth of some of the world`s major sharia indexes is still below the ISSI. The Dow Jones Islamic Market increased 16.4 percent, FTSE Global Shariah by 15.8 percent and MSCI World Islamic grew by only 13.1 percent.

(T.SYS/B/KR-BSR/A/H-YH)

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