Jakarta_Islamic_Index
The Jakarta Islamic Index (JII) is a stock market index established on July 3, 2000 on the Indonesia Stock Exchange (IDX) (formerly known as Jakarta Stock Exchange) to help facilitate the trading of public companies according to Syariah business code. Following Islamic law prohibits a company from involving itself in activities related to gambling, speculation, and traditional banking and financing. The JII may not list equities that produce or distribute food, drink, or morally harmful items that stand in contradiction with Islamic values.
Unlike the Indonesian Syariah Stock Index (ISSI) that lists all IDX stocks that meet the Syariah code, stocks listed under the JII must meet procedural standards as well as performance requirements, such as:
- The share must be listed on the exchange for at least three months prior to application.
- The company’s annual or mid-year financial report must have an Obligation Asset ratio of no more than 90%.
- Rank in the top 60 shares based on the previous year’s average Market Capitalization.
- Rank in the top 30 shares based on the previous year’s average liquidity in the regular market.
A reevaluation of the listed shares is held biannually and the results are publicized in May and in November.
