JSX okays syariah investments

JSX okays syariah investments

The Jakarta Post, Jakarta

The National Syariah Council signed on Thursday a memorandum
of understanding (MOU) with the Jakarta Stock Exchange (JSX) to
pave the way for the development of syariah-based investment
portfolios in the country.

Under the agreement, the council would make sure the syariah
portfolios like bonds and stocks are in compliance with syariah
(Islamic law) principles, said JSX president Erry Firmansyah.

The council also signed the same MOU with the Surabaya Stock
Exchange and other related market regulatory organizations.

"Companies which will issue syariah investment products are
required to submit their terms and conditions to the council for
approval," said Erry.

Under the plan, the council can also explore other types of
syariah-based investment portfolios like state warrants and
mutual fund products.

Erry said that with the above agreement, all related market
organizations are obliged to accommodate transactions in syariah-
based investment products, and they must also provide necessary
facilities to facilitate the transaction.

Meanwhile, chairman of the Capital Market Supervisory Agency
(Bapepam) Herwidayatmo welcomed the move, saying it would provide
new investment alternatives for the people.

He said that syariah-based investment products would soon
emerge as an important investment option in the country as most
Islamic countries including Malaysia had launched such products.