**Is Capitalization of Sharia Stocks and Sharia SCF Considered in Indonesian Sharia Capital Market Sector Growth?**
In recent years, the capitalization of Sharia stocks in Indonesia has seen significant growth. As of December 2024, the total assets of the Sharia capital market reached Rp6,825.31 trillion, comprising 616 issuers contributing 55.35% to the total stock capitalization in Indonesia. However, various reports from the Financial Services Authority (OJK) indicate that the capitalization of Sharia stocks is excluded from the calculation of total Sharia capital market assets.
**The Importance of Sharia Capital Market Growth**
When calculating the total assets of the Sharia capital market, OJK only includes the value of outstanding government bonds, corporate bonds, and mutual funds. By December 2024, the value of outstanding government bonds amounted to Rp1,628 trillion, approximately 20% of the total issuance of government bonds. The second-highest contributor to Sharia capital market assets is corporate bonds, with an outstanding value of Rp55.27 trillion, accounting for 11.63% of the total issuance of corporate bonds. Additionally, the value of Sharia mutual funds as of December 2024 stood at Rp49.31 trillion, representing 9.92% of the total national mutual fund value. The Sharia capital market sector is a major contributor to Indonesia’s Islamic finance, surpassing the total assets of Islamic banks, which reached Rp935.42 trillion in November 2024, and non-bank Islamic financial institutions with assets below Rp170 trillion (excluding the assets of the Hajj Financial Management Agency and Sharia Cooperatives supervised by the Ministry of Cooperatives). This highlights the increasing recognition of the Sharia capital market as a key pillar in the national financial ecosystem.
**Growth in Sharia Stocks and Securities Crowd Funding**
Sharia stocks are part of the Sharia Securities List (DES) published by OJK every semester. The criteria in the DES are based on the National Sharia Council-Majelis Ulama Indonesia (DSN-MUI) Fatwa No. 40 of 2003 on the Capital Market and General Guidelines for Sharia Principles Application in the Capital Market. The number of DES issuers has seen significant growth, with 436 DES issuers at the end of 2020 increasing to 671 issuers by the end of 2024, of which 616 are Sharia stock issuers. This growth reflects the increasing interest of companies in operating according to Sharia principles.
In addition to the capitalization of Sharia stocks, the value of Sharia securities and stocks in Sharia Securities Crowd Funding (SCF) is also not included in the calculation of total Sharia capital market assets. Although the value is still below Rp1 trillion, Sharia SCF serves as an innovative Sharia funding platform to support Small and Medium Enterprises (SMEs) and start-ups. Considering that Sharia stocks and Sharia SCF are supervised Sharia investment instruments, their capitalization values need to be taken into account in the total Sharia capital market assets.
**The Future of Sharia Capital Market**
The rapid growth of the Sharia capital market is attributed to supportive regulations, improving public literacy, and investor confidence in Islamic finance. With an increasing market share and various investment instruments available, the Indonesian Sharia capital market is expected to play a more strategic role in strengthening Sharia-based economies at both the national and global levels.
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**Personal Story: Building Wealth Responsibly with Sharia Investments**
Imagine a world where your investments not only generate profits but also align with your ethical values. As someone who values financial responsibility and ethical considerations, I was intrigued by the concept of Sharia investments. It offers a unique opportunity to grow wealth while adhering to Islamic principles that promote fairness and transparency.
The growth of the Sharia capital market in Indonesia signifies a shift towards more responsible and sustainable investment practices. Companies operating in accordance with Sharia principles not only contribute to the economy but also uphold ethical standards that benefit society as a whole. This dual impact of financial growth and ethical integrity is what sets Sharia investments apart in today’s dynamic market landscape.
For individuals seeking to build wealth responsibly, exploring Sharia investments could provide a pathway to financial success while staying true to one’s values. By considering the capitalization of Sharia stocks and Sharia SCF in the broader context of the Sharia capital market, investors can make informed decisions that align with their financial goals and ethical beliefs. Embracing the principles of Sharia finance not only diversifies investment portfolios but also fosters a more inclusive and sustainable financial ecosystem for the future.
