Legal Review of Collective Investment Contracts in Issuance of Sharia Mutual Fund Instruments According to Islamic Law (Case Study in Indonesia)
- DOI
- 10.2991/assehr.k.201209.355How to use a DOI?
- Keywords
- Aqad, Collective Investment Contract, Sharia Mutual Funds
- Abstract
According to the Capital Market Law in Indonesia, namely Law no. 8 years 1995 concerning the Capital Market, Mutual fund management can be in the form of a Limited Liability Company and can also be in the form of a Collective Investment Contract (KIK). This article will explore the legal form of KIK on Sharia Mutual Funds in Indonesia in the perspective of Islamic Contract Law. Based on to the Fatwa of Indonesian Ulema Council Number 20/DSN-MUI/IV/2001 concerning Investment Implementation Guidelines for Sharia Mutual Funds, the mechanism of its activities uses a wakalah contract and the Mudharabah agreement as a hybrid contract between the Investment Manager and the Investment User. The main isues are: what makes the concept of Sharia Mutual funds different from Conventional Mutual funds? is there other alternative contracts which is more suitable for sharia compliance of Sharia Mutual Funds? This research uses doctrinal law study approach. The authors found that there is an eclectic relationship that supports one another in the point of fund management and also there are alternative contracts that can be applied in sharia mutual funds by means of Waqf based Mutual funds.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Gemala Dewi AU - Achmad Abdullah Farchan PY - 2020 DA - 2020/12/14 TI - Legal Review of Collective Investment Contracts in Issuance of Sharia Mutual Fund Instruments According to Islamic Law (Case Study in Indonesia) BT - Proceedings of the 2nd International Conference of Law, Government and Social Justice (ICOLGAS 2020) PB - Atlantis Press SP - 711 EP - 721 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.201209.355 DO - 10.2991/assehr.k.201209.355 ID - Dewi2020 ER -