Sharia File 9

8/4/2019 Sharia File 9

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Mukadi

ISLAMI

mah to:

C CAPITAL MARKET

Iggi H Achsien

[email protected]


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Before joining with Insight, Iggi worked as AdvSyariah Mandiri and for President Director in Pstarted his career as analyst in AAA Securities

Investment Unit in the company.

Iggi has been known as pioneer in Sharia Bonissuance of the first sharia bonds of Indosat Mthe team for arrangement of the first sharia sy

Iggi has Investment Manager license from Bapinvestment banking, fund management, and sIggi is also a member of National Shariah Boar

Iggi graduated with predicate of cum laude f

University of Indonesia (FEUI).

Commissioner PT Insight InvCommissioner PT Insight Inv

isor for President Director in PT BankPerusahaan Gas Negara Tbk. Iggind became Head of Islamic Finance &

s (Sukuk) market in Indonesia withdharabah jn 2002. Iggi was also part ofndicated-loan for IM3.

pam and has experiences in the field ofaria advisory in more than 9 years.

d of Majelis Ulama Indonesia.

om Faculty of Economics,

Iggi H. Achsienstments Management

Iggi H. Achsienstments Management


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Agenda:

Highlight

Basic of Islamic Finance for A

Financial System:Instruments Institutions

Sharia Investment Islamic Po

plication in Capital Market

arket - Regulation

tfolio


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Equity

I slamic Capital Marke

Highlight


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Evolution of the Industry


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Products Evolution


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Infrastructures Developments


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2000

2001

2002

2003

2004

2006

2007

2008

JakartaIslamicIndexFatwaNo.20| InvestasidiReksadana

FatwaNo.32dan33|ObligasiSyariah

FatwaNo.40|PasarModalSyariah

MoUBapepam LK&DSNMUI

FatwaNo.41|ObligasiSyariahIjarah

PeraturanBapepam&LKNo.IX.A.13|

PeraturanBapepam&LKNo.IX.A.14|

efeksyariahdipasarmodal

FatwaNo.59|ObligasiMudharabah

PeraturanBapepam&LKNo.II.K.1|K

FatwaNo.65|HMETDSyariah,Fatwa

|SBSN,FatwaNo.71|SaleandLeaseLeaseBack,UUNo.19Tahun2008|S

1997 IslamicMutualFund DanareksaSyar

Syariah

(Mudharabah)

PenerbitanEfekSyariah

Akadakadyangdigunakandalampenerbitan

onversi

riteriadanPenerbitanDES

No.66|WaranSyariah, FatwaNo.69dan70

back,FatwaNo.72|SBSNIjarah SaleandSN

ahMilestone in Indonesia


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EquityI slamic Capital Mark

Basic of Islamic Financ


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Basic Prin

All form ofmuamalah is permissible except the (haram)

Freedom to have contracts with mutual conse

Prohibition and avoidance of:

Riba

Maysir Gharar

Ethics or Akhlaq in Transaction

Documentations of Akad

iple of Islamic Transactions (1)

re are hujah / dalil that mentioned it as not permissibl

ts (tijaratan`an taradhin minkum)


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Misperception from avoidance of Riba and

There is no Fixed Rate of Return

[ there are financing of sale in form of (mur

Return without Risk[ There are always credit risk, default risk, li

Basic Principles.. (2)

harar:

baha/ salam), leasing (ijarah)? ]

uidity risk and other risks? ]


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Natural Certainty Contract:Return :Fixed pre-determined / Certai

Cost-plus (Margin) orFee

Format :Exchange / Ba-iMurabahah (Deffered Payme

Istisna (Purchase by Order/M

Rahn (Mortgage)

Natural Uncertainty Contract:Return :Expected / Indicative / Uncert

(Revenue orProfit Sharing)Format :Partnership / Syarikah

Mudharabah / Muqaradah, M

Bentuk Transaksi Syariah

n based on

nt), Salam (Advance Payment),

anufacture), Ijarah (Lease),

ain / Floating based on Sharing

usyarakah.


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Functions:Medium of Exchange

Unit of Account

but Not Store of Value

Motives:

Transaction - Md = f(Y)

Precautionary Md = f(Y)

and No Speculation Md = f(i)

Concept of Money

Consept of Money & Time Value

Time Value of Money says:

A dollar now is worth more

than a dollar in the futureWhy?

Presence of InflationPreference present consumption to future

consumption

Formulated as:

FV = PV (1+i)t or FV = PV eit

Or

PV = FV (1+i)-t or PV = FV e-it


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Since TV of Money contradicts aboliti

Economic Val

But still, Shall we apply the method of discouproductive process? If the is a contradi

Discount factor is used as opportunit

Rate of Return, not interest, may be used

but this Rate of Return I

Risk-free rate (pure intere

Debate on Discount Factors

n of Riba, Islamic Finance prefers

e of Time

nting for evaluation of resource utilized intion, what are alternative methods?

cost, preventing loss of efficiency

as discount factor in Islamic Finance

NOT formulated as

t) plus Risk premium


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Dis

Faktor Diskonto may still be used in investment val

considered as opportunity cost, preventing loss of

Cost of Debt:

Rate from Margin orFee, from Murabahah, Sala

Cost of Equity:Rate ofReturn from Mudharabah / Muqaradah an

Weighted Cost of Capital:

(r1M1+ r2M2 + r3M3 + r4S4 + r5I5) / V

M1 = Mudharabah M2 = Musyarakah M3 = Muarabahah S4

count Factor and Cost of Capital

uation,

fficiency.

, Istisna, and Ijarah

Musyarakah

= Salam I5 = Isthisna


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EquityI slamic Capital Mark

Financial Syste


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Institutions Inst

Financial Institutions(Shariah)

Financ(S

Regulation

(al-hisb)

ruments Markets - Regulation

Financial Instruments(Shariah)

ial Marketariah)


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ConsistenPrin

Liquidity

Key SuKey Su

FactFact

Infrastructure & Technology

Com

Accountiati

Education and State-of-art inf

ormation dissemination

Liquidity, Liquidity, Liquidity!

In all operati

Key Success Factors

y of Shariaiple

Players

cesscess

rsrs

Wide-range of Productsand Services

mon Standard

g and operonal platform

Large number of Institutions andwide investor-based

onal aspects

Innovative, universally acceptable and market driven


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Institution

Institutions:Fund Managers

Investment Bankers / Underwriters / Arrange

Rating AgenciesTrustee and Custody

Instruments

Islamic Mutual Funds

Halal Stocks and Index

Sukuk

PeraturanNational Shariah Board (DSN)

Securities Commission (Bapepam-LK)

SRO Exchange (IDX)

and Instruments in the Market

rs


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Indo

Rulings on Issuance Process

Process Equality:Shariah & Conventional

Socialization

Regulatory SRO (BEI,d Other Pl

Investor Pro

Market Effi

Prohibition of SMargin Trading for H

Perusahaan Efek(PEE, MI)

Wali Amanat

Bank Kustodian

Profesi Penunjang

Primary Market

Secondary Marke

Issuer

esian Capital Market in a Frame

KPEI, KSEI) anyers

tection

iency

hort Sale,lal Instruments

Coordination Bapepam-LK and MUI

DSN actively involved in regulationthrough DPS and TAS

Investor

Dewan PengawasSyariah

(DSN-MUI)

Tim Ahli Syariah

Dewan PengawasSyariah (DPS)


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Periode Publication Date

I 30Nov2007II 30May2008III 28Nov2008IV 29May2009V 30Nov2009IV 27May2010

Average

Halal Stocks @ IDX

alal Stocks Listed Stocks %

164 383 43%

180 390 46%

185 396 47%

177 396 45%

186 402 46%

194 401 48%

181 395 46%


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45%

57%

51%

48%

48%

MarketCap

Volume

Freq

Value

Stock

ShariaStockMarket Non

Sharia

Market

45%

NonSharia

Market

55%

MarketCapitalization

Halal Stocks

55%

43%

49%

52%

52%

ShariaStockMarket

Sharia

Market

48%

NonSharia

Market

52%

NumberofStocks


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ConsumerGoods

11%

Property

18%

Infrastructure

7%

Halal Stocks based on Sectors

Agriculture

5%

Mining

6%

BasicIndustry

16%

Miscellaneous

Industry

11%

Trade

26%


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2.575

423

1.000

2.000

3.000

4.000

4Jan

IHSG

:

40%JII:28%

JI I Performance 2010

3.597

542

300

400

500

600

15Oct

IHSG

JII


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Sukbeco

product

(a commeIMF/

Sukuk

k will hopefullyme the financialf the future capital

market!

t at one of session of theorld Bank meeting,ubai, Sep 2003)


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175 7401.424

2.009 2.1

6

13

16

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2002 2003 2004 2005 2

Cumulative Numbers of Iss

Total Nilai Emisi Sukuk (Rp miliar)

Sukuk

82

3.174

5.498

7.0157.715

7

21

29

43

46

-

5

10

15

20

25

30

35

40

45

50

06 2007 2008 2009 Jun-10

ance & Value for Corporate Sukuk

Total Jumlah Penerbitan Sukuk

S k k


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Obligasi96%

Marke

Sukuk

Sukuk4%

Share

S k k


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InvestorSyariah

37%Investor

NonSyariah

63%

Investor SukukPada Pasar Perdana

Sukuk

BankSyariah

75%

AsuransiSyariah

13%

DanaPensiunSyariah

0%

ReksaDana

Syariah

12%

Investor Syariah

6%

47%19%

3%14%

11%

InvestorUmum

Bank Umum Asuransi UmumDana Pensiun Umum Reksa Dana Umum

Perusahaan Sekuritas Lain -Lain

M t l F d


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4

11

17

23

67

593 559723

0

1.000

2.000

3.000

4.000

5.000

6.000

2003 2004 2005 2006

Islamic Mutu

Reksa Dana Syariah Tot

Mutual Funds

26

36 46

50

2.203

1.815

4.630

5.211

0

10

20

30

40

50

60

2007 2008 2009 Sep-10

l Funds

al NAB Reksa Dana Syariah

M t l F d


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8,2%

91,8%

Reksa Dana Syariah

Market Share in Numbers

Mutual Funds

M t l F d


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4,1%

95,9%

Total NAB Reksa Dana Syariah

Total NAB Reksa Dana Komulatif

Market Share in Asset Value

Mutual Funds

Ind st Statistics S mma


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M arket Share Islamic Financial Indust r

category

ASSET IN(IDR bil

SHARIAH

Banking 2.603.352,00

Insurance 193.292,15

Mutual Funds 122.616,58

Sukuk / Bonds 199.727,00

SBSN / Gov Bonds 1 .035.098,41

Industry Statistics Summary

y 1st Semest er 2010

USTRYlion)

MARKET

SHARE-SHARIAHTOTAL(Shariah & Konventional)

75.205,00 2,89%

3.497,00 1,81%

5.006,63 4,08%

7.715,40 3,86%

38.284,30 3,40%


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EquityShariah Portofoli

Concept and Aplicatio

Investment P rocess


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Investment

Investment Poli

Portfolio

Assets Allocatio

Performance

Investment P rocess

bjectives

y / Guidelines

trategy

n & Cleansing

Evaluation

Difference in Aplications


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Objectives:

Innama amalu bi niyat

To obey shariah principles

Al location Process :

Instrument identification shariah permis

Cleansing atau Puri fication process : Revenue which is still considered as non-

Issue: Cleansing vs Zakat

Difference in Aplications

ible (screening process)

halal (i.e interest income)

Proses Screening


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Fatwa DSN(Dewan Syariah Nasional)

Fatwa No 20:/DSN-MUI/IV/2001

Core Business Criteria, will exclude:

Operation involving gamblingOperation based on Riba and Gharar

(conventional financial institutions)

Activities of producing, distributing, and selling non-halal foods

Activities of producing, distributing, and selling haram products

and services

Financial Ratios Criteria, will exclude:

Total Debt / Total Asset = or > 82%

Non-halal Income / Revenue = or > 10%

Subsidiaries (>50% shares) involving in non halal activities

Negative Equities

Proses Screening

DJIM(Dow Jones Islamic Market):

Core Business Criteria, will exclude following industries:

Alcohol

Tobacco

Pork-related products

Conventional financial services

Defense / Weapons

Entertainment (Music, hotels, casinos, cinema, etc)

Financial Ratios Criteria, will exclude :

Total Debt / Total Asset = or > 33%

Acc Rec / Total Assets = or > 45%

Non-halal Income / Revenue = or 5%

Jakarta Islamic Index


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Shariah Stocks

inList ofShariah Effects

(DES)

60stocks bon

Capitalizati

last1 ye

ByBapepamLK

&DSN

Jakarta I slamic Index

sed

n inr

30stocks basedon Transaction

Value inlast1 year

ByIDX


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T H A N K Y O U

Documents

Sharia File 9