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Mukadi
ISLAMI
mah to:
C CAPITAL MARKET
Iggi H Achsien
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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