An Event Study on the Indonesian Ulema Council's Fatwa Regarding the Boycott of Israel and United States Affiliated Companies in Indonesia
Keywords:
Abnormal Returns, Affiliated Company, MUI Fatwa Number 83 of 2023, Unaffiliated CompaniesAbstract
This research aims to evaluate abnormal returns surrounding the announcement of the Indonesian Ulema Council’s (MUI) Fatwa Number 83 of 2023 and to compare abnormal returns before and after the announcement. This study employed an event study approach. The population consists of companies listed on the Indonesia Stock Exchange (IDX). The research sample included nine companies affiliated with Israel and the United States, as well as nine non-affiliated companies from the same industry sectors to provide a balanced comparison. Abnormal returns were calculated using the single index model. The independent variable in this study was the return of the Composite Stock Price Index (IHSG), while the dependent variable was the stock return. The results indicated that there were no significant abnormal returns surrounding the announcement of MUI’s Fatwa Number 83 of 2023 for either affiliated or non-affiliated companies. Furthermore, the findings revealed no significant differences in abnormal returns before and after the announcement for either group of companies.
References
Arifin, W. (2018). The Impact of Dividend Announcements on Abnormal Returns and Stock Trading Volume (Case Study of Manufacturing Companies Listed on the Indonesian Stock Exchange 2015-2017). 66.
Hidayat, H. (2018). Analysis of Differences in Abnormal Returns Before and After Political Events in Lq-45 Company Shares. Journal of Management Science, Vol.7 No.2.
Ho, H. (2019). Application of International Humanitarian Law in the Armed Conflict Between Palestine and Israel. Lex Et Societatis, 7(2), 394.
Kumala, R., & Astuti, S. (2019). Differences in Abnormal Returns Before and After the Ex-Dividend Date Announcement (Study of Manufacturing Companies Listed on the Indonesian Stock Exchange 2017-2019). 1–11.
Kusnandar, D. L., & Bintari, V. I. (2020). Comparison of Abnormal Stock Returns Before and After Changes in Trading Times During the Covid-19 Pandemic. Journal of Capital Markets and Business, 2(2), 195–202. https://doi.org/10.37194/jpmb.v2i2.49.
Malau, B.S.L. (2024). Long Queues at Malls Snaking for Free Takjil, Even Though the Menu is Starbucks That is Boycotted. https://wartakota.tribunnews.com/2024/03/25/antrean-panjang-di-mal-mengular-demi-takjil-gratis-padahal-menunya-starbucks-yang-diboikot?page=all#goog_rewarded.
Mokobombang, M. A. R., Utara, S., Ayu, F., Niu, L., Utara, S., Hasan, J., & Utara, S. (2023). Boycott Behavior in Islamic Perspective and Its Implementation in the Contemporary Era. 3(1), 88–95.
MUI. (2023). Fatwa of the Indonesian Ulema Council No. 83 of 2023 concerning the Law of Support for the Palestinian Struggle. Https://Mui.or.Id/, 1–9. https://mui.or.id/baca/berita/kebesaran-fatwa-terbaru-mui-imbau-umat-islam-berhenti-konsumsi-produk-usaha-pendukung-israel.
Nurdifa, R.N. (2023). Unilver Indonesia (UNVR) Sends Aid to Victims of the Middle East Conflict. https://market.bisnis.com/read/20231118/192/1715577/unilver-indonesia-unvr-kirim-bantuan-untuk-korban-konflik-timur-tengah.
Nurasiah, I., Permata, N., & Auliana, S. (2023). Stock Price Correction for Products Affiliated with Israel as a Result of the Boycott, Divestment and Sanctions (BDS) Movement on the Indonesian Stock Exchange (BEI) for the 2023 Period. 5(83), 55–61.
Puspadini, M. (2023). The Latest Fate of Stocks Affected by the Israeli Boycott. https://www.cnbcindonesia.com/market/20231116132102-17-489570/nasib-terkini-saham-yang-terimbas-boikot-israel.
Rachmawati, D. (2023). Boycotting Pro-Israel Products, Employees Could Be Threatened with Mass Layoffs. https://ekonomi.bisnis.com/read/20231114/12/1714315/boikot-produk-pro-israel-karyawan-bisa-terancam-kena-phk-massal.
Risqi, M., Septiazi, F., & Yuliana, N. (2023). Analysis of the Influence of Social Media on the Movement to Boycott Israeli Products in Indonesia. Multidisciplinary Journal of Social Sciences, 2(4), 2023–2054.
Sidqi, I., & Witro, D. (2020). The Position of the Indonesian Ulema Council (MUI) Fatwa in the Perspective of Islamic and National Law: A Study of the Implications of Fatwa for the Community Imaro. The Position of the Indonesian Ulema Council (MUI) Fatwa in the Perspective of Islamic and National Law: A Study of the Implications of Fatwa for the Community, Vol.8, No., 21–31.
Simanjorang, B. M., SyahPutra, B. A., Husin, M. H., Bangun, I. B., Zawani, N., Siburian, T. D. N., Angin-Angin, Z. G., & Prayetno. (2023). The Influence of the Palestinian Conflict with Israel on the Hamas Resistance Movement and Its Impact on Indonesia. Mediation: Journal of Law, 2(2), 24–30. http://www.nber.org/papers/w16019.
Syahroni, M. I. (2022). Quantitative research procedures. EJurnal Al Musthafa, 2(3), 43-56.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Salman Al farisi, Novi Puspitasari, Agus Mahardiyanto (Author)

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.