Analysis of Sharia Investment Law and Capital Markets on Sharia Securities in Indonesia

Abstract

Sharia Economic Law regulates sharia securities, which are an integral part of investment practices, and the capital market in Indonesia consists of investment instruments issued and traded in accordance with Islamic sharia principles. The sharia capital market itself is part of the Islamic financial system, aiming to provide a halal investment platform. Its practice in Indonesia relates to capital market activities, which represent a potential economic driver and play a crucial role in national economic growth. The capital market is viewed as an effective means of accelerating a country's development. This is possible because the capital market is a vehicle for mobilizing long-term funds from the public for channeling into productive sectors. Investment in the capital market is permitted by sharia, as stated in the Quran, Surah Al-Baqarah: 275. However, certain measures must be observed to ensure that securities investments in the capital market remain compliant with sharia. Fatwa No. 80 of the National Sharia Council (DSN MUI) explicitly outlines the criteria for securities transactions in the capital market to be compliant with sharia. The sharia capital market is a capital market that establishes the principles of Islamic teachings in economic transaction activities and is free from things that are prohibited such as usury, gharar (excessive uncertainty), and maisir (speculation).