In line with the national and global economic slowdown due to the COVID-19 pandemic, the performance of the sharia capital market has also experienced a slowdown, particularly the performance of sharia shares and sharia mutual funds,
Jakarta (ANTARA) - Vice President Ma'ruf Amin attributed a decline in the performance of the sharia (Islamic) capital market and slowdown in growth to the COVID-19 pandemic.

Amin made the statement while delivering a key speech at the International Conference on The Future of Islamic Capital Market: Opportunities, Challenges and Way Forward held virtually by The National Islamic Economics and Finance Committee (KNEKS), Thursday.

"In line with the national and global economic slowdown due to the COVID-19 pandemic, the performance of the sharia capital market has also experienced a slowdown, particularly the performance of sharia shares and sharia mutual funds," Amin noted at the vice president's official residence in Jakarta, Thursday.

In addition, the vice president pointed out that the market share of sharia finance in Indonesia was still low, at 9.89 percent of the country’s total financial assets.

"The OJK (Financial Services Authority) once said that our sharia financial market share is still relatively low, at 9.89 percent of the total national financial assets, including the Islamic capital market," he noted.

The sharia capital market development has, in fact, been conducted since 1997, with the emergence of the first Islamic mutual fund in Indonesia, the vice president remarked.

However, development of the Islamic capital market in Indonesia took a long time, as its growth had only been felt since 2011.


Related news: Sharia economic potential to be driving force of economic growth: Amin

Related news: VP calls for innovation, research on sharia economy at varsities


"To develop the sharia capital market, the OJK has issued a 2020-2024 Sharia Capital Market Roadmap as one of the guidelines on the direction of sharia capital market policies," he pointed out.

The government has additionally made several endeavors to strengthen the sharia finance industry related to the expansion of the sharia capital market in Indonesia.

Amin highlighted the government's efforts through the merger of three sharia banks from the Association of State-Owned Banks (Himbara) to Bank Syariah Indonesia (BSI).

Amin also pointed to the issuance of State Sharia Securities (SBSN), which is an investment instrument for sharia finance industry players and retail SBSN for the general public.

"The Green Sukuk (Islamic bonds), the first and largest SBSN in the world, with a sustainable concept was issued; and it has received 42 awards from various international institutions," he stated.

The vice president noted that the OJK had granted permission to issue sharia mutual funds and sharia shares, the fatwa, or edict, of which was issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI).


Related news: Jokowi presses for supervision during distribution of COVID-19 drugs

Related news: Indonesia offers vast space for sharia finance development: VP Amin


Translator: Fransiska, Azis Kurmala
Editor: Fardah Assegaf
Copyright © ANTARA 2021