Asset Management

Asset Management


Syariah Definition & Rules


Syariah Mutual Fund Definition based on the fatwa from The Ulema Council of Indonesia (DSN-MUI) No. 20/DSN-MUI/IV/2001 pertaining to the guidelines of investment implementation for Syariah mutual fund dan No. 40/DSN-MUI/X/2003 pertaining to stock market and general guidelines of Syariah principles implementation, either for the management of investment fund as representatives of Shahib al-mal, or between investment managers with investment user as representatives of Shahib al-mal.

Regulation No. IX.A.13: SYARIAH STOCK ISSUANCE

Regulation No. IX.A.13: SYARIAH STOCK ISSUANCE stipulated the guidelines of Syariah stock issuance that consist as follows:


  • Share
  • Bond
  • Mutual Funds
  • Asset-Backed Securities
I. Syariah Mutual Fund Share Issuance

Submission of Registration Statement following the regulation IX.A.1 pertaining to a general provision of the submission on Registration Statement in the general tender of Mutual Fund in a form of a partnership. Additional information is available in the prospectus:


  • Budget stipulated conditions that business activity and management should be based on Syariah principles
  • Mutual fund investment policy should not be inconsistent with Syariah principles in the stock market.
  • Types of business and/or service rendered, asset managed, contract, and the management method should not be inconsistent to Syariah principles.
  • Members of the board, representatives of investment managers, and custodian banks must possess the knowledge pertaining to activity that can violate Syariah principles.
  • Isolate wealth issuers from elements that can violate Syariah principles.
  • Investment funds can only invest in the securities registered in the Syariah securities list set forth by Bapepam and LK or other regulating bodies acknowledged by Bapepam.
II. Syariah Mutual Fund Investment Unit Issuance (KIK)

Submission of Registration Statement in the general tender of Mutual Fund in a form of collective investment contract. Additional information is available in the prospectus:


  • Budget stipulated conditions that business activity and management should be based on Syariah principles.
  • Mutual fund investment policy should not be inconsistent with Syariah principles in the stock market.
  • Members of the board, representatives of investment managers, and custodian banks must posses the knowledge pertaining to activity that can violate Syariah principles.
  • Isolate wealth issuers from elements that can violate Syariah principles.
  • Investment funds can only be invested in the securities registered in the Syariah securities list set forth by Bapepam and LK or other regulating bodies acknowledged by Bapepam.
III. Portfolio

Portfolios containing non-halal components that were not executed by the Investment Manager and Custodian Bank (CB), should be treated as follows:


  1. The investment manager is obligated to sell the non-halal securities in two working days at the latest.
  2. The price deviation of the sales value should be treated as a social fund, and therefore separated from the NAB calculation.
  3. The Custodian Bank is obligated to report to Bapepam and LK as well as Securities' holders of the Mutual Fund pertaining to the aforementioned social fund.
  4. Portfolios containing non-halal securities that were executed by the Investment Manager and Custodian Bank, should be treated as follows:
    • The Investment Manager and Custodian Bank should be prohibited to sell new investment units.
    • The Investment Manager and Custodian Bank should be prohibited to make any diversions to the mutual Fund wealth.
    • The Investment Manager and Custodian Bank should refrain from buying non-halal securities as per the received value.
    • The Investment Manager is responsible for making a public announcement as soon as possible, within two working days at the latest, upon receiving the letter from Bapepam and LK.