Smart Ways to Set Aside Holiday Allowance for Investment
JAKARTA—Each year, Tunjangan Hari Raya (THR, holiday allowance) is a moment anticipated by many. Typically, these funds are quickly allocated for various needs such as shopping, travelling home, sharing with family, or purchasing long-desired items. There is nothing wrong with enjoying the fruits of one’s hard work—it is a natural thing. However, have you ever considered not spending your entire THR? What if a portion were set aside to build assets for the future?
One option to consider is investing in Islamic capital market products. These instruments are not merely profit-oriented but also uphold Islamic principles such as the prohibition of riba (usury), gharar (ambiguity), and maisir (excessive speculation). Thus, investors can feel more secure because available products have undergone selection and supervision processes in accordance with Islamic requirements.
Irwan Abdalloh, Head of the Islamic Capital Market Division at PT Indonesia Stock Exchange (BEI), has communicated in various educational forums that the timing of THR receipt is ideal for starting an investment habit.
“THR should not merely be consumption funds, but rather a starting point for building assets. By allocating part of THR to Islamic investment instruments, people learn to defer immediate gratification for the sake of sustained prosperity in the future,” he said.
In Indonesia’s Islamic capital market, diverse investment product options are available. One is Islamic stocks—shares from companies whose business activities do not contradict Islamic principles and meet certain financial criteria. The list of Islamic stocks is contained in the Sharia Securities List (DES), regularly updated by the Financial Services Authority. BEI has Islamic stock indices that can serve as reference points for investors selecting Islamic shares. There is the Indonesia Sharia Stock Index (ISSI), which contains all Islamic stocks listed on BEI, and the Jakarta Islamic Index (JII)—comprising 30 of the most liquid Islamic shares. There are also other indices such as JII70, IDX Sharia Growth, IDX-MES BUMN17, and most recently the S&P/IDX Indonesia Shariah High Dividend Index, offering different strategies for investors. Information regarding Islamic stock indices at BEI is available at www.idx.co.id/id/idx-syariah/indeks-saham-syariah/. By purchasing Islamic stocks, investors obtain a stake in companies and have the potential to gain returns through capital gains as well as dividends.
In addition to stocks, there are sukuk, often referred to by the public as Islamic bonds. However, fundamentally, sukuk and bonds are different instruments—sukuk are evidence of participation or financing of assets or underlying projects in accordance with Islamic principles, whereas bonds are debt instruments. Sukuk are issued by the government or companies to finance specific projects and generally offer relatively stable returns over a certain period.
For beginners, Islamic mutual funds may be a more practical choice. Investor funds are managed by professional investment managers into a diversified portfolio of Islamic securities. With relatively affordable capital, people can already begin investing without needing to analyse the market in depth. Irwan emphasised the importance of starting with small amounts.
“There is no need to wait for large funds to begin investing. Rather, the habit of regularly setting aside funds, even if the amounts are not substantial, will yield significant results over the long term,” he noted.
Irwan also emphasised that Islamic investment is not a speculative activity.
“The Islamic capital market encourages investor thinking in decision-making to focus on ownership of productive assets and value growth by understanding company business rather than merely focusing on short-term price movements without considering company fundamentals,” he explained.
For this reason, supplementary funds such as THR are highly relevant as initial capital for opening a securities account in the Islamic capital market and beginning to invest gradually.
Beyond the potential for profit, setting aside THR for investment also trains financial discipline. When someone is able to restrain themselves from spending all additional funds, they are building stronger financial character. In the long term, the accumulation of these small habits can develop into a significant portfolio. If part of THR is invested each year over 10 to 20 years, the growth potential is certainly far greater than if those funds were exhausted for immediate consumption.
Allocating THR to Islamic capital market products ultimately represents a tangible step in combining spiritual values with financial responsibility. With good intention, discipline, and proper understanding, investment no longer feels complicated or daunting, but rather becomes part of the effort to build sustainable prosperity in accordance with Islamic principles.
Islamic investment education has been conducted extensively through various channels, including the operation of Islamic Capital Market Schools. The ease of opening accounts online makes it possible for the young generation to begin investing with capital of merely hundreds of thousands of rupiah.
Further information regarding the Islamic capital market is available on the official Instagram account @idxislamic and the official website www.idxislamic.idx.co.id.