Indonesia – FSA Sharia Mutual Funds

Indonesia – FSA Sharia Mutual Funds

On 21 February 2020, IDN FSA issued rule on sharia mutual fund requirements.

  • Published regulation on issuance and requirements for sharia mutual funds (RDS).
  • Also provides for new product alternatives for investors, amends and replaces old law.

Regulation Key Provisions

  • Provided for new types of RDS such as collective investment contracts formed for individual investors, and provisions for RDS liquidation due to certain conditions.
  • Clarified investment limit per party for sukuk-based RDS (RDSBS), at most 50%.
  • Added to the provisions on filing documents for issuing RDSBS not by public offering.
  • Aligned regulation of limited participation RDS with conventional limited participation mutual funds (RDPT) by removing the provisions on exclusion of the asset guarantee.
  • As well as reduced the minimum investment limit value from IDR 5 billion to 1 billion.
  • Provided that foreign sharia securities include: shares, sukuk with maturity of one year or more, and other securities such as islamic REITS and asset backed securities.
  • Set out types of sources of funds and use and distribution that cannot be recognized as net asset value of RDS; prohibits use, must get sharia supervisory board approval.
  • Investment managers must disclose in the prospectus if a deduction of zakat on the assets of the RDS has been made; if deducted, must provide the basis of calculation.
  • As well as selected zakat institution; must disclose deduction on annual financial report


  • Regulations are effective on date of promulgation.