Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Political Economy Impact In Syaria Stock Exchange Market Growth
Iskandar Iskandar, Waridin Waridin, Yusvita Nena Arinta

Building: Parallel Session 1
Room: G
Date: 2020-10-27 01:15 PM – 02:30 PM
Last modified: 2020-10-19


This paper describes the growth and gaps in the Islamic capital market and the conventional capital market in the political economy of Indonesia. Indonesia, as a country with the largest Muslim population in the growth of its Islamic capital market, has not yet got a right place in Muslim society. The gap between those interested in Islamic capital markets and conventional capital markets is still very high. This study uses a qualitative methodology by explaining the dominant factors to the existing gaps in terms of capital, technology, socialization and the role of political and economic institutions in Indonesia. Secondary data used to analyze existing problems. Market share and Islamic stock business players are still tiny, socialization is still not evenly distributed among Muslim academics and also business people. Currently, there is still little research related to Islamic stocks in the study of Indonesian political economy. The literature that discusses this study is only a few writings. The conclusions of this study are: Regional and national political stability which is the control of the government needs to endeavor so that shock to the capital market can be eliminated, and political relations between countries and capital market cooperation need to be improved. A Sharia Capital Market Law is required, the synergy of Sharia Capital Market policymakers needs to be reformulated to anticipate current problems so as not to get caught up in the issue of global capitalism, and classification of investors is necessary to simplify development strategies. The comfortable and systematic Syariah Capital Market curriculum needs to be socialized more massively and programmed with clear targets. The results of this paper are expected to be used as material for analysis by policymakers to formulate action plans for the growth of the Islamic stock market in Indonesia.Keywords: Capital Market, Political Economy, Isomorphism, Indonesia