IDX: 72% of Exchange Shares Fall Within Islamic Finance Category

Jakarta — The Indonesia Stock Exchange (IDX) has reported that the Islamic capital market has demonstrated robust growth over the past five years. To date, 672 of 956 listed shares—equivalent to 72% of all shares on the exchange—fall within the Islamic finance category. The market capitalisation of Islamic shares stands at a significant 56% of total market capitalisation, indicating strong investor demand for Islamic financial products.

Jeffrey Hendrik, Acting President Director of the IDX, stated that the number of Islamic investors has grown substantially from 85,000 four to five years ago to 220,000 currently. This growth has prompted the IDX to introduce a new Islamic finance mode feature within its IDX Mobile application, designed to facilitate public access to Islamic capital market information and education.

The new feature provides information on the Islamic financial market, Islamic bonds (sukuk), simulated Islamic share transactions, and guidance on Islamic religious rulings (fatwas) and relevant regulations. The IDX Mobile application currently boasts 510,000 users, many of whom use the platform to learn about capital markets before opening trading accounts and becoming investors.

Hendrik expressed confidence that the addition of the Islamic finance mode feature will catalyse further growth in Indonesia’s Islamic capital markets. He emphasised that Islamic finance principles are universally applicable, with Islamic capital markets offering inclusive investment opportunities across all communities seeking to invest according to superior risk management principles, not limited to any particular religious group.