Is Indonesia Energy (INDO) stock Halal?

Indonesia Energy operates in the hospitality and property development sectors. The company is primarily engaged in managing and developing a portfolio of hotel properties, catering to a diverse clientele that includes tourists, business travelers, and event organizers. With a focus on the Southeast Asian market, Royalindo Investa Wijaya Tbk seeks to capitalize on the growing demand for quality hospitality services in the region. For Muslim investors, though, the most pressing question is simpler: is Indonesia Energy a Halal investment?

Is Indonesia Energy Shariah compliant?

Yes. In the October 2026 screening Indonesia Energy (INDO) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. For consumer companies like Indonesia Energy, the products are rarely the problem; clothing, cars, travel and home goods are permissible. The exposure is usually financing: stores, inventory and expansion are often funded with borrowing, and the 30% cap that AAOIFI Shariah Standard No. 21 places on interest bearing debt is the screen that decides most verdicts in this sector.

Does Indonesia Energy pass the business activity test?

Yes. In the October 2026 screening Indonesia Energy holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is Indonesia Energy's income Halal?

Yes, within AAOIFI's tolerance. Indonesia Energy's income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 100% tells holders of INDO what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around None, the purification amount is modest but real.

Does Indonesia Energy meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $41.1M (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has INDO re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Indonesia Energy?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read AAOIFI Standards Explained: What Makes a Stock Halal?