The new holding of state Islamic banks, PT Bank Syariah Indonesia Tbk (IDX: BRIS) targeting to distributes loan financing for micro, small, and medium enterprises (MSME) around Rp53.83 trillion (US$3.82 billion), said the management last week - Photo: Special

JAKARTA (TheInsiderStories) – The development of the Indonesian sharia capital market showed a positive performance in the past four years. Since 2015, total sharia assets reached US$90.95 billion (Rp1,291.48 trillion), with a market share of 8.55 percent of national financial assets, according to Financial Services Authority (FSA) report released Thursday (05/9).

“This is reflected in the Net Asset Value (NAV) and the number of sharia mutual funds and the increase in the value of state and corporate Sukuk,” said FSA’ Director of Sharia Capital Market, Fadilah Kartikasasi.

She noted, since 2015-2019, the number of sharia mutual funds issued increased 161.29 percent. When compared with the previous year, the increase reached 8.48 percent. The number of Sharia mutual funds in 2019 was 243 with a NAV of Rp 35.38 trillion.

In 2018 the number of Sharia mutual funds reached 224 with a NAV of Rp34.49 trillion. This figure shows significant growth compared to 2015 when sharia mutual fund products were only 93 products with a NAV of Rp11.02 trillion, she added.

According to FSA data, 55.06 percent of the total sharia financial assets are contributed by the sharia capital market. The growth is also accompanied by the growth of investor shareholders and sharia mutual funds. As of February 2019, the number of sharia share investors and mutual funds reached 328,268 and 102,253 investors. ‘

To support the growth of Sukuk, FSA encourages the issuance of waqf-based Sukuk investment products, with the name Sukuk Waqf. Sukuk waqf has the same rules as existing Sukuk. The difference is that the object that forms the basis of the Sukuk waqf issuance transaction is the assets that are represented.

FSA encourages related parties, namely to reach the recipients (beneficiaries of waqf) to issue Sukuk waqf. The Indonesian Waqf Agency data shows that there are 4.1 billion square meters of waqf assets scattered throughout the country. Most waqf assets are used for social activities, such as mosques, schools, madrasas, and tombs.

The agency also sees the potential of waqf land to be very productive to be productive especially if it is in strategic places. FSA hopes that with the issuance of Sukuk waqf, the assets can become commercial and productive assets through the construction of hospitals, schools, campuses, hotels, office buildings that can be leased to generate revenue and increase added value.

In terms of the development of the sharia capital market, Sukuk waqf is expected to be a variation of new investment products that are popular in the community, thus contributing to the growth of Sukuk.⁣


Written by Lexy Nantu, Email: