Islamic Product

ISLAMIC STOCKS

Islamic shares that listed in the Indonesian Islamic Capital Market, either listed on IDX or not, are incorporated into the List of Islamic Securities (DES) issued by OJK on a regular basis, every May and November. Currently, based on POJK No. 8 of 2025, the criteria for selection of Islamic shares by OJK are as follows:

The Company does not conduct any business activities as follows:

a. Gambling and other activities categorized as gambling;

b. Interest-based financial services (ribawi);

c. Trading of risk containing elements of uncertainty (gharar) and/or gambling (maisir);

d. Producing, distributing, trading, and/or providing:

• Products or services that are inherently prohibited (haram li-dzatihi);
• Products or services that are prohibited not due to their substance (haram li-ghairihi), as determined by the National Sharia Council – Indonesian Ulema Council (DSN-MUI) ;
• Products or services that harm morals and/or are detrimental; and/or
• Other products or services that contradict Sharia Principles in the Capital Market as determined by DSN-MUI.

e. Engaging in other activities that contradict Sharia Principles in the Capital Market as determined by DSN-MUI.

The Company must also meet the following financial ratios:

a. The ratio of interest-based debt to total assets must not exceed 45% (forty-five percent)*; and

b. The ratio of interest income and other non-halal income to total business revenue and other income must not exceed 5% (five percent).

*The ratio will be gradually adjusted to 33% over a period of 10 years from the enactment of the regulation.

SUKUK

Sukuk is a securitized asset that meets the principles of Islamic in the capital market. Based on the issuer, the sukuk consists of two types:

1. Government Sukuk issued by the Indonesian government regarding to Law No. 19 of 2008 concerning State Islamic Securities (SBSN), and

2. Corporate Sukuk issued by companies, both private companies and State-Owned Enterprises (SOEs), based on OJK regulation No. 18 / POJK.04 /2015 concerning Issuance and Sukuk Requirements.

In the case of sukuk issued by the corporation, the assets that underlying the issuance of sukuk shall not be in conflict with the Islamic principles in the Capital Market consist of:

1.     Particular tangible assets (a’yan maujudat);
2.     Both existing and will exist beneficial values of to particular tangible asset (manafiul a’yan)
3.     Services (al khadamat) that have already existed or will exist
4.     Particular project assets (maujudat masyru 'mu'ayyan); and / or
5.     Investment activities that have been determined (nasyath ististmarin khashah).

ISLAMIC MUTUAL FUNDS

Islamic mutual funds according to POJK. No. 19/POJK.04/2015 is a Mutual Fund as defined in the Capital Market Act and its implementing regulations whose management does not contradictory with the Islamic Principles in the Capital Market. Based on that definition, each type of the mutual funds can be issued as Islamic mutual funds as long as it meets the Islamic principles, including the assets that underlying its issuance.

Islamic mutual funds are considered fulfilling the Islamic principles in the capital market if the akad, arrangements and portfolios are not contradictory with Islamic principles in the capital market as stipulated in the OJK regulations regarding the Implementation of Islamic Principles in the Capital Market.

ISLAMIC EXCHANGE TRADED FUND (ETF)

Islamic Exchange Traded Fund (ETF) is one form of mutual funds that meets the Islamic principles in the capital market where the unit of participation is listed and transacted as Islamic stocks in the Indonesia Stock Exchange. Because the form is mutual funds, the issuance must comply with OJK regulation no. 19/POJK.14/2015 regarding the issuance and requirements of Islamic mutual funds. In order the transaction fulfilling the Islamic principles, the investor who wants to exercise the buy or sale of Islamic ETF must be through an Exchange Member that owns Sharia Online Trading System (SOTS).

ISLAMIC ASSET-BACKED SECURITY (ABS)

Based on the OJK regulation No. 20/POJK.04/2015 regarding the Issuance and Requirements of the Islamic Asset-Backed Securities (ABS), the Islamic ABS that issued in Indonesia capital market consists of two types:

1. Islamic ABS in the form of Collective Investment Contract between investment manager and custodian bank (KIK-EBAS) is an asset-backed securities that its portfolio (consisting of financial assets in the form of receivables, financing or other financial assets), the akad and the manner of its management is not contradictory to the Islamic principles in the capital market.
2. Islamic ABS in the form of Participation Letter (EBAS-SP) is a Islamic asset-backed securities issued by the issuer whose akad and its portfolio (in the form of a collection of accounts receivable or home financing) is not contradictory to the Islamic principles in the capital market and also serve as a proof of proportional ownership that owned by a group of EBAS-SP holders.

ISLAMIC REAL ESTATE INVESTMENT TRUST (REIT)

Based on the OJK regulation No. 30/POJK.04/2016 regarding Islamic REIT in the form of Collective Investment Contract, Islamic REIT is define as a form used to raise funds from the investor community to be subsequently invested in real estate assets, real estate-related assets, and/or cash and cash equivalents that is not contradictory with the Islamic principle in the capital market.

Islamic REIT in the form of Collective Investment Contract are considered fulfilling the Islamic principles in the capital market if the akad, management and real estate assets, real estate-related assets, and/or cash and cash equivalents is not contradictory with Islamic principles in the capital market as stipulated in the OJK regulations regarding the Implementation of Islamic Principles in the Capital Market.