Analysis of the Applications of Sharia Principles to the Development of the Indonesian Sharia Stock Index (ISSI) in the Sharia Capital Market (Case Study of PT. Bursa Stock Indonesia Representative Office of North Sumatra)

Abstract

Purpose — The Indonesia Sharia Stock Index is a stock index that is an indicator in the performance of the Islamic stock market consisting of all sharia stocks listed on the IDX included in the Sharia Securities List (DES) issued by OJK. The existence of ISSI is a complement to the pre-existing stock index, the Jakarta Islamic Index (JII). Issuers that join sharia shares are issuers that have passed the review test set by the Financial Services Authority (OJK) regarding the procedures set by the Fatwa DSN-MUI, namely in accordance with Islamic law. This study aims to determine the application of sharia principles on the Indonesian Sharia Stock Index and its development as reviewed from the PT Indonesia Stock Exchange North Sumatra Representative Office. This research includes qualitative research.

Method — The type of research is field research with the source of data used is primary data, namely data obtained from interviews and secondary data, namely in the form of stock data reports and growth rates on an annual basis obtained through the official website of the Indonesia Stock Exchange. Data collection techniques with research methods using analytical descriptive methods. The results of this research indicate that the application of sharia principles to the Indonesian Sharia Stock Index is in accordance with the DSN-MUI Fatwa Number 80 of 2011.

Result — Then the development of the ISSI in 2019-2023 experienced an increase and decrease, but the decrease could still be stabilized so that it could It is said that ISSI is getting better every year, with the increase in investors, number of assets and activities regarding sharia shares. This research is research that specifically discusses directly the principles of sharia in one of the products of PT Bursa Efek Indonesia with the results of a survey (interview) that is adequate to the questions asked. A search of previous research literature related to Descriptive Analysis of Sharia Stock Investment has not been found that directly discusses the principles in accordance with the DSN-MUI Fatwa and its development.

Novelty — Existing research discusses the level of development on other topics, for example the study of Comparative Analysis of the Indonesian Sharia Stock Index (ISSI), investment studies in the capital market, the impact of ISSI during the pandemic and so on.