REPUBLIKA.CO.ID, JAKARTA - Islamic capital market grows significantly in Indonesia although it is newly developed in 2006. After the opening in 2007, Jakarta Islamic Index (JII) has enlisted 164 stocks. Now the number increases to 270 stocks in June 2012.

"The portion is more than 50 percent of the total stocks registered in the exchange," the Director of Business Development at Indonesia Stock Exchange, Friderica Widyasari Dewi, said on Tuesday. The total of the issuers enlisted in the stock exchange is 444.

The volume of trade is also higher than the conventional one, which is 83.7 percent. From the total of 4,857 lots in Indonesia Stock Exchange (IDX), 4,065 lots of them are Islamic market.

The frequency of the transaction is also dominated by Islamic transaction in around 76.6 percent. The total frequency recorded in IDX is 109,121 transactions; with 89,629 of them are Islamic transactions.

Investors recently eye on the Islamic share because it is safer and healthier than conventional one. For the companies planning to register its share in Islamic capital market, Friderica explained some criteria. One of them is that the share should be free from the business containing speculation, usury and other things forbid by Islam.

She added, the companies did not have to be Islamic one to register their share as Islamic share as long as the companies met the criteria. IDX now still boosts the development of Islamic capital market by broadening the promotion. People’s understanding towards Islamic capital market should also be improved. 

"Invest in Islamic system is safer than conventional. It is proven. When the crisis happens, Islamic industry does not get the big impact," she said.

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