THE CONTRIBUTION OF SHARIA INVESTMENT INSTRUMENTS TO ECONOMIC DEVELOPMENT OF PUBLIC IN INDONESIA: OPPORTUNITIES AND CHALLENGES OF SHARIA STOCKS,BONDS (SUKUK), SHARIA MUTUAL FUNDS, AND PRECIOUS METALS

Abstract

The dynamic global economic development demands innovation and diversification of financial instruments, including in indonesia, where the majority of the population is muslim. One significant development is the emergence of sharia-compliant investment instruments (iis), which are based on Islamic finance principles and avoid elements of usury, gharar, and maysir. These instruments are not only intended to generate financial returns but also serve a social purpose: stimulating the Muslim economy while upholding sharia values. The potential of the sharia-compliant financial market is enormous. Sharia-compliant bonds, or sovereign sukuk, also continue to grow, becoming a strategic source of financing for infrastructure development. Meanwhile, sharia-compliant stocks, sharia-compliant mutual funds, and precious metal investments are gaining popularity as safe and halal investment portfolio alternatives. This research uses a qualitative descriptive approach supported by quantitative data. However, despite the significant potential, the contribution of sharia-compliant investment instruments to the economic development of the Muslim community is not yet optimal. Instruments such as sharia-compliant stocks play a role in providing halal capital for companies, sukuk (Islamic bonds) help finance public projects without violating sharia principles, sharia-compliant mutual funds provide affordable investment access for small investors, and precious metals serve as a hedge against inflation. These four instruments, if utilized optimally, can drive inclusive and equitable economic growth in indonesia's real sector.