Renewal Analysis of Islamic Stock Criteria in Indonesia

Muslim is the majority population in Indonesia. This has become a background to provide investment instruments to meet Islamic principles. This study analyzes the renewal of Islamic stock criteria established through Bapepam LK (The Financial Services Authority/OJK) regulations. This is normative juridical research, with the object of Bapepam LK Regulations regarding Islamic stock criteria. In Indonesia, the Islamic stock criteria were first established in 2007. Bapepam LK then made an update on the Islamic stock criteria in 2009, and the last update was in 2012. Updates in 2009 were carried out on qualitative criteria, while the quantitative criteria remained. This renewal made the criteria for Islamic stocks more stringent. While the renewal in 2012 was carried out on quantitative criteria, the qualitative criteria remained steady. This renewal had eased the criteria for Islamic stock. The results of the study showed that the issuance and renewal for the Islamic stock criteria was carried out by Bapepam LK based on the fatwa and approval letter of National Sharia Council (DSN) of Indonesian Ulema Council (MUI). The stipulation of the criteria for Islamic stocks is the outcome of DSN MUI’s ijtihad