ISLAMIC BANKING IN INDONESIA: Islamic Banking The Banking System Being Credible Alternative

With intention of maximizing  and  the aptitude of financing  for many sectors in the national economy, the Islamic banking system should have  synergy with conventional banks to provide  and  mobilize public funds more broadly (BI, diakses 2016).  Due to the fact that, Indonesia  has been well known as the biggest of population moslem country, it leads a very big potential market for Islamic banking  in the regional and the globe including  Moslem and Non-Moslem countries. Being different with its neighbor Malaysia, Indonesian government doesn’t make Islamic banking as a tool for growing in her  economic growth, but Indonesian Islamic Bankers  together with  Indonesian government seem to practice Islamic Banking System in Indonesia to be more compliance with Islamic values. Choudhury (2014) in his paper explains  that the process-oriented model named  as the shuratic process or the expansively interactive, integrative and evolutionary process (called IIE-learning process) is revealed to be crucial as the approach  of the circular causativeness and steadiness model of integrated actuality in Islamic political economy.

Ullah (2015) explained in his paper how an Islamic banking product (is able to) progresses into numerous  service practices in dissimilar circumstances of its submission. In the  model, there is an argument that a service should continuously expand into various practice environments and  to fulfil the requirements of several contexts and sustainable.  State Bank of Pakistan is the best illustrative to exhibit  how the regulators adopted an evolutionary regulatory framework that calls for designing and developing  Islamic banking products that  improve into the evolving market needs. The advanced  structure of   our thoughtful is the break-through of an Islamic banking product  which is developed  into the practiced atmosphere  of banks.  Therefore, it will be continued  to be more excellent and can be  authorized as development  of  regulatory frameworks in the Islamic banking industry.

The mutual benefits can be profited for  both the public and the bank as well, because of the feature of Islamic banking operation, that based on partnership and shared benefits principle. Justice in transaction and fair investment are the aspects that will be given primacies by Islamic Banking Operation System(BI, Sharia Banking, to be accessed 2016).

By highlighting the values of inseparableness and partnership in production, and side-stepping  any notional activity in financial transaction. To afford various products and banking services supported by numerous  financial schemes, Indonesian Islamic Banking along with the verse of Al Quran, it is said that, in Surah Al Anbiya’ verse 107: “And We have not sent you, [O Muhammad], except as a mercy to the worlds” (The Noble Quran,to be accessed 2016). Based on this ayat (verse) Allah Subhaanahu wa ta’ala told to the Prophet Muhammad Peace Be Upon Him that whatever he brought in this world are the mercy to the world, so all of all Indonesian people without exemption can be profited  by Islamic banking as a credible alternative (BI, Sharia Banking, to be accessed 2016)


BI, Sharia Banking:Islamic Banking in Indonesia in Brief, to be accessed on September 20th 2016

Choudhury, Masudul Alam. “Islamic Political Economy: An Epistemological Approach.” Social Epistemology Review and Reply Collective 3, no. 11 (2014): 53-103.

Ullah, Karim. 2016.  Evolutionary Islamic Banking Service. Journal of Islamic banking and Finance Vol 3 No 2 December 2015 to be accessed on September 22th 2016

The Noble Quran, to be accessed on September 22th 2016