OJK Regulation No. 8 of 2025 on the Publication of the Sharia Securities List and Foreign Sharia Securities List

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Sector:

Capital Market

Sub-Sector:

Sharia Capital Market; Securities; Securities Companies

Regulation Type:

OJK Regulation

Regulation Number:

8 of 2025

Effective Date:

4/25/2025

Attachment 1 POJK 8 of 2025 Publication of the Sharia Securities List and Foreign Sharia Securities List.pdf Abstract of POJK 8 of 2025 Publication of the Sharia Securities List and Foreign Sharia Securities List.pdf FAQ of POJK 8 of 2025 Publication of the Sharia Securities List and Foreign Sharia Securities List.pdf

Page Content Regulation of the Financial Services Authority Number 8 of 2025 concerning the Publication of the Sharia Securities List and Foreign Sharia Securities List

Abstract: The development of the Sharia capital market industry in Indonesia and the increased growth of Sharia investment management products require changes to regulations regarding the party responsible for publishing the Sharia Securities List (PPDES) and adjustments to Sharia financial ratio criteria, considering that the Financial Services Authority Regulation Number 35/POJK.04/2017 concerning Criteria and Publication of the Sharia Securities List is deemed no longer aligned with industry developments. The Sharia financial ratios in that regulation, particularly the 10% limit for interest and non-halal income, need to be adjusted to encourage the growth of Sharia investment products. Furthermore, by the end of 2023, most PPDES approved by OJK were Sharia Investment Managers or Investment Managers possessing Sharia Investment Management Units, necessitating regulatory changes more focused on PPDES issuing the Sharia Securities List for third parties. Additionally, to enhance the effectiveness of compiling the Sharia Securities List, there is a need to reaffirm the submission of information by Issuers or public companies through a reporting system integrated with the Sharia Securities List compilation information system. The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 8 of 1995 as amended by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023. This Financial Services Authority Regulation governs the Sharia Securities List (DES), including the contents of the DES, Sharia stock criteria, information sources for DES compilation, and its determination and usage; the Foreign Sharia Securities List (DESLN), covering its purpose, publication, contents, compilation, issuing party, and announcement and reporting; and the revocation of approval for the Sharia Securities List Issuer (PPDES). Improvements are made through definition adjustments in accordance with prevailing regulations, revision of Sharia financial ratios, including the gradual reduction of the interest-based total debt limit from 45% to 33% over 10 years and the reduction of the non-halal income limit from 10% to 5%, as well as the reaffirmation of the obligations of Issuers and Public Companies to submit information for DES compilation. Additionally, it regulates OJK's authority to determine DES at different times, the expansion of parties eligible to become PPDES, and registration requirements, documents, and compilation mechanisms for PPDES.

Notes: This Financial Services Authority Regulation (POJK) takes effect on the date of its promulgation. This Financial Services Authority Regulation (POJK) was promulgated on April 25, 2025, and established on April 10, 2025. The provisions regarding financial ratios concerning total interest income and other non-halal income compared to total business income and other income as referred to in Article 2 paragraph (1) letter b number 3 letter b) shall take effect after 1 (one) year from the date of promulgation of this Financial Services Authority Regulation. The provisions regarding the magnitude of financial ratio limits as referred to in Article 2 paragraph (2) shall be implemented within a period of at most 10 (ten) years from the date of promulgation of this Financial Services Authority Regulation. Upon the commencement of this Financial Services Authority Regulation, the Financial Services Authority Regulation Number 35/POJK.04/2017 concerning Criteria and Publication of the Sharia Securities List, and its implementing regulations, are revoked and declared invalid. Further provisions will be regulated in a Circular Letter of the Financial Services Authority.