Islamic investments are a unique form of socially responsible investments because Islam makes no division
between the spiritual and the secular. The Shariah ethical investment products do not only provide opportunities
for moslem community to apply their religion and belief in business sector, but also provide investment
opportunities for universal investors. Investors will not only look at investment performance or Shariah
compatibility alone. They will demand both Shariah compliance and good returns. The Shariah ethical
investment products in Indonesian capital market as investment instruments play vital role at this sense.
However, to realize the ultimate goals of Shariah ethical investment in Indonesian capital market the process will
be not easy. In one side, there will be a tendency to bring Shariah ethical investment products in a legal-formal
approach and in the other side there will be a tendency to bring Shariah ethical investment products to a more
substantive approach in term of realizing the objectives of shariah. This paper argued that the Shariah ethical
investment products in Indonesian capital market are still in the transitional stages. The tendency of imitating
conventional products will be more dominant. However, the regulator needs to step forward to develop a more
substantive investment products based on Islamic true objectives
