Indonesia Stock Exchange to Launch New Shariah Index at the End of April 2021

The Indonesia Stock Exchange (IDX) announced that it will be launching a new Shariah (Islamic) index on the 29th of April 2021. This new index is to consist of 17 Shariah-compliant State-Owned Enterprises (BUMN) stocks, the best in terms of both market size and liquidity.

Why it Matters?

The IDX is of the hope that the rising number of new Islamic-themed indices will increase the market share and growth of new investors; it targets a new investor growth rate of 30% annually. According to the IDX’s, it is next set to issue a new index with the theme Environmental, Social, Governance (ESG) for Islamic stocks, which would complement the ESG Leaders index that was launched in mid-December 2020. The IDX also envisions more issuers entering and being...