Sharia Commodity is a commodity trading activity according to sharia principles carried out on the Commodity Exchange. Commodities traded must be of a known sort, quality, and amount, and permissible by laws and regulations.
In practice, commodity trading on the Exchange is based on sharia principles in the form of purchase and sale commodity between Commodity Traders Participants and Islamic financial institution (Commercial Participants), and between Islamic financial institution (Commercial Participants) and Islamic financial institution customers (Commodity Consumers); and in the following sales, buying and selling are carried out between Islamic financial institution customers (Commodity Consumers) and Commodity Trader Participants.
Currently, sharia commodity transactions on the ICDX commodity exchange serve liquidity needs for Islamic financial institutions and financing facilities for their customers.
Sharia Commodity, widely known as Commodity Murabahah, were first practiced by a local Islamic bank in Saudi Arabia and subsequently followed by several Islamic financial institutions. Then, in October 2000, Saudi British Banks pioneered the practice of Commodity Murabahah banking and it was followed by Al-Jazeera bank at the end of 2002. In Saudi Arabia, The National Commercial Bank (NCB) was the first bank to issue financing products using Commodity Murabahah namely Taysir in 2000. Subsequently, Abu Dhabi Islamic Bank (ADIB) launched Al-Khair, an innovative sharia-compliant financial product based on Commodity Murabahah concept. Commodity Murabahah transactions carried out by Islamic banks in the Middle East usually use the London Metal Exchange (LME) as a trading platform for commodities.
Meanwhile, in Malaysia, Bank Negara Malaysia (BNM) issued the Commodity Murabahah Program (CMP) to facilitate investment and liquidity management in March 2007. Furthermore, on 17 August 2009, Bursa Malaysia launched the commodity trading platform “Bursa Suq al-Sila' (BSAS) to facilitate liquidity management and financing in Islamic banking. In Indonesia, Sharia Commodity referring to the DSN MUI No: 82/DSN-MUI/VIII/2011 concerning on Commodity Trading based on Sharia Principles in Commodity Exchanges by fulfilling the provisions stipulated in the fatwa.
To facilitate Islamic financial institutions in utilizing Islamic commodity instruments for liquidity management
Serves as the chairman of the Industry, Business, and Sharia Economics department of DSN-MUI. He received a recommendation from the National Sharia Board-Indonesian Council of Ulama No.U-888/DSN-MUI/XII/2018 & was appointed as a Member of the Sharia Supervisory Board through the General Meeting of Shareholders of ICDX on 27 Dec 2018.
Serves as head of the Republic of Indonesia's National Amil Zakat Agency (BAZNAS) and Deputy Chairperson of the DSN-MUI Daily Executing Agency. He received a recommendation from the DSN-MUI No.U-888/DSN-MUI/XII/2018 & was appointed as a Member of the Sharia Supervisory Board through the shareholders general meeting of ICDX on 27 Dec 2018.
CIMB Niaga began conducting banking activities based on Sharia principles after obtaining the business license through the Decree of the Governor of Bank Indonesia. PT Bank CIMB Niaga Tbk officially joined as an ICDX participant on March 17, 2022. See details.
PT CIMB Niaga Auto Finance is an automotive finance company, a subsidiary of PT Bank CIMB Niaga Tbk. PT CIMB Niaga Auto Finance officially joined as an ICDX member on 17 March 2022. See details.
PT Bank Syariah Indonesia Tbk (BSI) is a bank merger between PT Bank BRI Syariah Tbk, PT Bank Syariah Mandiri, and PT Bank BNI Syariah. BSI officially became a participating member of ICDX on February 10, 2023. See details.
PT Bank Maybank Indonesia is one of Indonesia's leading private banks, which is part of the Malayan Banking Berhad (Maybank) group. PT Bank Maybank Indonesia has officially registered as an ICDX Member since March 6, 2023. See details.
ICDX as a Futures Exchange has obtained permission from the Commodity Futures Trading Supervisory Agency (CoFTRA) - Ministry of Trade to organize a sharia commodity murabahah market.
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