By Timur Abimanyu, SH.

MH

In line with Shari'ah Economic For

Community Economic

Year 1930 turned ugly or broke economy, where the mainstream economic system which
is also called the dominant economic system in the world at that time as the mainstream in
developed countries in particular USA joints of human life. So at that time, great Depression
occurs early 1930, the U.S. president, Franklin D.Roosevelt questioned the existence of an
alternative economy to respond to major depression that occurs at the time. Depression is aware of
the world, it turns out the mainstream economic system that has been received at that time to bring
havoc to the life of mankind. Viewing the factual phenomenon of world economic system it
appears the demand to find alternative economic system is, in fact we can take pictures blurry face
of capitalist economics in achieving its goals. The existence of an alternative economy of the
Islamic economic system in the field of Islamic banking is in fact already exist in public
life. However, it was not enough to give legitimacy existence of Islamic banking system in
Indonesia Since the legitimacy they do not provide adequate space for the operation. The history of
Islamic banking in the World, the term Islamic banking or Islamic Banking is a new phenomenon
in modern economic world, they appear along with the intense efforts made by Islamic scholars in
Islam who is believed to support the economy will be able to replace and repair the conventional
economic system based on interest.That's why Shari'ah Banking system to apply interest-free
system (interest free) in operation, and therefore the most common formula for defining Sharia
Banking is a bank that operates in accordance with Islamic Shari'ah principles, with reference to
the Holy Quran and Sunnah as the basis for the legal and operational basis.
Uzair Maududi was a pioneer of Islamic banking theory with his work entitled A
Groundwork for the Interest Free Bank. The thought that has emerged in the 50s did not
immediately give way to the field for Islamic banking. In the 1960s, banks Shariah only be
theoretical discourse. There has been no concrete steps that enable the practical implementation of
ideas. In fact, awareness has emerged that the bank's Shariah is a solution to economic problems
generate social welfare in Muslim countries. The first Islamic bank was MYT-Ghamr
Bank. Founded in Egypt, with the help of capital from the King Faisal of Saudi Arabia and is the
target of Prof. Dr. Abdul Aziz Ahmad El Nagar.MYT-Ghamr Bank being successfully integrate
the German banking management with the principles of Islamic muamalah by translating it in the
bank's products are suitable for rural areas is largely oriented towards the agricultural
industry. However, due to political issues, in 1967 MYT-Ghamr Islamic Bank closed.Then in 1971
in Egypt successfully re-established Islamic bank with the name of Nasser Social Bank, the only
purpose is more social than commercial.Who's first Islamic Bank is the private nature of Dubai
Islamic Bank, established in 1975 by a group of Muslim businessmen from various countries. In
1977 established two Islamic banks in the name of Faysal Islamic Bank of Egypt and Sudan. And
in that year the government also established the Kuwait Finance House Kuwait.

Since then approached the early decades of the 1980s, Islamic banks are popping up in
Egypt, Sudan, the Gulf States, Pakistan, Iran, Malaysia, Bangladesh and Turkey. In broad outline
of Islamic banking institutions are emerging that can be categorized into two types, namely the
Commercial Bank Islam (Islamic Commercial Bank), as Faysal Islamic Bank (Egypt and Sudan),
Kuwait Finance House, Dubai Islamic Bank, Jordan Islamic Bank for Finance and Investment,
Bahrain Islamic Bank and Islamic International Bank for Finance and Development; or investment
institutions in the form of an international holding companies, such as Dar Al-Maal Al-Islami
(Geneva), Islamic Investment Company of the Gulf, the Islamic Investment Company (Bahamas ),
Islamic Investment Company (Sudan), Bahrain Islamic Investment Bank (Manama) and the
Islamic Investment House (Amman). History of Islamic Banking in Indonesia, As the development
of Islamic banking in the world of thought-especially Islamic countries, Indonesia joined the
impact of the charges taxable scholar-thinking Muslim scholars Indonesia.Indonesia as the State's
largest majority Muslim population in the world appears of thinking about the need to implement
sharia-based banks that emerged in 1974. the emergence of the idea of sharia-based banking
thinking in a seminar Indonesia-Middle East organized by the Institute for Social Sciences
(LSIK). The development of thinking about the need for the Indonesian Muslims have their own
Islamic banks begin to blow since then, as the emergence of a new consciousness of the
intellectuals and Muslim scholars in the economic empowerment of the community. At the
beginning it had been a long debate on bank interest law and tax law zakatvs among the clergy,
scholars and Muslim intellectuals.
The differences among the Muslims did not discourage the emergence of Islamic banking
in Indonesia, pioneering the practice of Islamic banking in Indonesia began in the early period of
the 1980s, through themed discussions of Islamic banks as the economic pillars of Islam. The
characters involved in these assessments, to name a few, among which are Karnaen A
Perwataatmadja, M Dawam Rahardjo, AM Saefuddin, and M Amien Aziz. As a pilot, the idea of
Islamic banking is practiced in a relatively limited scale of them in Bandung (Temple At-Tamwil
Salman ITB) and Jakarta (Cooperative Ridho Gustavo). As an illustration, M Dawam Rahardjo in
his writings never make recommendations of Sharia Banks as an alternative concept to avoid the
prohibition of usury, as well as trying to answer the challenge for the financing needs for business
and community economic development. The solution mentioned in passing with financing
transactions based on the three modes, namely mudlarabah, musharaka and murabaha. More
specific initiatives on the establishment of Bank Islam in Indonesia has only done 1990. On
August 18 to 20 years, the Indonesian Ulema Council (MUI) held interest rates and banking
workshop in Cisarua, Bogor, West Java. The result of the workshop were then discussed in more
depth at the IV National Congress of the MUI in Jakarta August 22 to 25, 1990, resulting in the
mandate for the formation of working groups establishment of Islamic banks in Indonesia.
The working group is called Team Banking MUI to be given the task to approach and
consultation with all parties concerned. As a result of the MUI Banking Team work is the
establishment of PT Bank Muamalat Indonesia (BMI), an appropriate deed of foundation,
established on November 1, 1991. Since 1 May 1992, official BMI operates with initial capital of
Rp 106.126.382.000, -. Until September 1999, BMI has had more than 45 outlets spread through
out Indonesia.Prospects of Islamic Banking in Indonesia, bank service is very important in a
country's economic development. Banking services are generally divided into two goals. First, as
the provider payment mechanism and an efficient tool for the customer. For this, the bank provides
cash, savings, and credit cards. This is the most important role of banks in economic life. Without
the provision of efficient payment instruments, then goods can only be traded by means barter time
consuming. Second, by accepting savings from customers and lend it to those who need funds,
meaning the bank to increase the flow of funds for investment and more productive utilization. If
this role goes well, the economy of a country will increase. Without the flow of these funds, the
money just stay in the pocket of someone, people can not get a business loan and can not be built
because they do not have the loan fund. In Islam are not allowed to settle to the funds or are not
productive. Thus the concept of Islamic banking, which is how all the funds could productively
build community economic Legal Aspects of Islamic Banking in Indonesia, as stated above, the
current Islamic banking in Indonesia is promising even though the motion is not as fast as
conventional banking, this is a result of systems and devices that support the banking law Sharia
does not give the widest space for Islamic banking to grow.
We can see prior to the revision of banking laws or the emergence undanga Act No. 10 of
1998 concerning banking, there are no legal instruments that support the operational system of
Islamic banks, except Law No. 7 / 1992 and Government Regulation No. 72 of 1992. In the Law
No. 7 of 1992 was understood as the existence of Islamic banking for the bank as well as Islamic
banking should be subject to banking regulations generally what we call the bank
konvensional.Setelah paraturan the revision of banking legislation is the emergence of Law. 10 of
1998 concerning Amendment to Law no. 7 of 1992 on Banking, stated that the Islamic Bank is a
commercial bank conducting business based on sharia principles in its activities to provide services
in payment traffic.The implementation of the principles of the above is what is the main
differentiator between Islamic banks with conventional banks. Where the Bank syari, Äôah / Islam
in the Indonesian banking system has been formally developed since 1992 in line with the
enactment of Law no. 7 year 1992.However, the Act has not been given a solid legal foundation
for the development of syari banks, because it has not expressly regulate the existence of banks
based on the principle syari, but Äôah Bank Profit Sharing. Understanding the intended Bank
Profit Sharing in the Banking Act No. 7 of 1992 has not been included in a permanent sense of
Islamic Banking which has a wider scope than the outcome. Similarly, operational requirements,
until 1998 there has not been fully operational provisions that specifically govern the activities of
Islamic Banking business.In Article 6 letter (m) and section (e) is not mentioned Bank syaria,
Äôah (Sharia), but only Bank Profit Sharing. Then this rule followed by PP. 72 year 1992 on the
banks based on the principles of the Banking Law No.10 years, 1998 of changing the Law. 7 of
1992 which was followed by the issuance of a number of provisions of the conduct in the form of
SK Board of Directors of BI / Regulation of Bank Indonesia, has given a stronger legal basis and
broader opportunities for banking development syari, Äôah in Indonesia. The legislation gives
ample opportunity for the development of banking networks syari, Äôah among others by opening
the branch office license syari, Äôah (seven) by conventional banks. In other words, commercial
banks allowed to run its business activities conventionally and at the same time can do so based on
the principles of Law No. 10/1998 syariah.Dalam It also has not been maximized because in this
law aspects of Islamic banking and many supporters have not adopted a consistent basis. Because
judging from the potential of Islamic banking which was incredible, Islamic banking may not only
get a portion of below 5% of the national conventional banking, Islamic banking can get a share of
50% even more than that, if legitisamsi law given in accordance with The actual concept of sharia
in kaffah and consistent. There is a revision of the Bank Indonesia Law Law. 23/1999 on Bank
Indonesia (BI) to provide support to the development of Islamic banking in Indonesia, where in
Law no. 23/1999 BI commissioned to prepare sets of rules or their supporting facilities that
support the operations of the Bank syari, Äôah. Both the Act on the basis of law Banking System
in Indonesia. Banking System in question is the implementation of the two banking systems
(conventional and Islamic) side by side in serving the national economy whose implementation is
set in a variety of regulations (BankIndonesia, October 2001). The role of Bank Indonesia as the
Indonesian Central Bank monetary authority is to help banks -banks experiencing liquidity
problems.
We can see prior to the revision of banking laws or the emergence undanga Act No. 10 of
1998 concerning banking, there are no legal instruments that support the operational system of
Islamic banks, except Law No. 7 / 1992 and Government Regulation No. 72 of 1992. In the Law
No. 7 of 1992 was understood as the existence of Islamic banking for the bank as well as Islamic
banking should be subject to banking regulations generally what we call the bank
konvensional.The revision of banking legislation is the emergence of Law. 10 of 1998 concerning
Amendment to Law no. 7 of 1992 on Banking, stated that the Islamic Bank is a commercial bank
conducting business based on sharia principles in its activities to provide services in payment
traffic.The implementation of the principles of the above is what is the main differentiator between
Islamic banks with conventional banks. Where the Bank syari, Äôah / Islam in the Indonesian
banking system has been formally developed since 1992 in line with the enactment of Law no. 7
year 1992.However, the Act has not been given a solid legal foundation for the development of
syari banks, Äôah because it has not expressly regulate the existence of banks based on the
principle syari, but Äôah Bank Profit Sharing. Understanding the intended Bank Profit Sharing in
the Banking Act No. 7 of 1992 has not been included in a permanent sense of Islamic Banking
which has a wider scope than the outcome. Similarly, operational requirements, until 1998 there
has not been fully operational provisions that specifically govern the activities of Islamic Banking
business.In Article 6 letter (m) and section (e) is not mentioned Bank syari, Äôah (Sharia), but
only Bank Profit Sharing. Then this rule followed by PP. 72 year 1992 on the banks based on the
principles of the Banking Law No. hasil.Pemberlakuan. 10 years, 1998 of changing the Law. 7 of
1992 which was followed by the issuance of a number of provisions of the conduct in the form of
SK Board of Directors of BI / Regulation of Bank Indonesia, has given a stronger legal basis and
broader opportunities for banking development syari, Äôah in Indonesia. The legislation gives
ample opportunity for the development of banking networks syari, Äôah among others by opening
the branch office license syari, Äôah (seven) by conventional banks. In other words, commercial
banks allowed to run its business activities conventionally and at the same time can do so based on
the principles of Law No. 10/1998 syariah.Dalam It also has not been maximized because in this
law aspects of Islamic banking and many supporters have not adopted a consistent basis. Because
judging from the potential of Islamic banking which was incredible, Islamic banking may not only
get a portion of below 5% of the national conventional banking, Islamic banking semestinta can
get a share of 50% even more than that, if legitisamsi law given in accordance with The actual
concept of sharia in kaffah and consistent. There is a revision of the Bank Indonesia Law
Law. 23/1999 on Bank Indonesia (BI) to provide support to the development of Islamic banking in
Indonesia, where in Law no. 23/1999 BI commissioned to prepare sets of rules or their supporting
facilities that support the operations of the Bank syari, Äôah. Both the Act on the basis of law
penerapanDual Banking System in Indonesia.Dual Banking System in question is the
implementation of the two banking systems (conventional and Islamic) side by side in serving the
national economy whose implementation is set in a variety of regulations (BankIndonesia, October
2001). The role of Bank Indonesia as the Indonesian Central Bank monetary authority is to help
banks -banks experiencing liquidity problems.
So far Islamic banking has proven its ability in creating the nation's overall economic
stability.Factually, Islamic banking has proved its superiority in time of crisis. At the time of
conventional banks experiencing the shock of mid-1997 crisis, Islamic banking with a proven
system for results survivors of the storm. For that, the existence of Islamic Banking Act expected
to further grow the national economy. Finally, the existence of Islamic Banking Act is also
expected to have an impact on investment flows into Indonesia is increasing, mainly from Middle
Eastern countries. Business activities of Islamic banks have to submit to sharia principles
difatwakan by the Indonesian Ulema Council (MUI), which is then poured in Bank Indonesia
Regulation (PBI). And while the Islamic banking dispute settlement rules made by the court in
religious courts. "It does not revoke the authority of the judicial settlement of disputes in general,
because if the parties have herald in the judicial settlement of disputes in addition to religion, then
the settlement carried out in the agreement. The challenge of crisis, although the Islamic Banking
Act has existed, the challenge nonribawi bank in the middle of a conventional bank siege are still
stretched. The development of Islamic financial system which may rapidly'm getting to really test
could prove as an alternative system, on the banking system of capitalism which is currently
affected by the global financial crisis. Substantially all, the "rescue" Islamic banking is operational
differences with conventional banking, where the financial system of Islam forbids lending with
interest expense, which is seen as usury, and this Islamic system forbids the derivative
speculation.Instead, funding should be on the real sector, as well as risk factors and profits are
shared between the bank and customer. Distribution of financing by Islamic banking in 2008 has
consistently continued to increase with a growth of 17.6 percent from the third quarter of 2007 or
to 42.9 percent in the third quarter of 2008. The amount of financing provided by Islamic banking
has reached Rp37, 7 trillion. During 2008 the service network of Islamic banks have added as
many as 130 branch offices. So now there are 1440 branches of conventional banks having Islamic
service. Geographically, the spread of Islamic banking office network now reaches people in more
than 89 districts in 33 provinces.Total BUS (Islamic Banks) increases, so until October 2008 to a
total of five BUS.Prospects 2009, a national Islamic banking climbed in 2009 is expected to
remain in the high growth phase, which is based juridical aspects of Islamic Banking Act makes
the legal certainty and encourage increased business capacity implementation of sharia. Also, the
Act SBSN a performance booster that Islamic financial system.Then the amendment of Tax Law
provides legal certainty in a support capacity building in Islamic banks through the withdrawal of
the role of foreign investors. In the field, the conversion will be realized some Sharia (Islamic
Business Unit) to BUS (Islamic Banks). At least in 2009 are targeted, there are 9 new Islamic
banks, which are estimated six from domestic banks, namely Bukopin Sharia, Sharia BCA, BNI
Syariah, Bank Syariah and Bank Panin Victoria Sharia and Islamic Bank, as well as the other three
originated from Middle East investors , both founded by the merger of local banks or
independent. Happened realization Corporate Sukuk issuance by Islamic banks to strengthen
capital base of Islamic banking. "No less important, increasing public awareness and preference
for using products and services of Islamic banks. Similarly, Islamic banking is considered as a
universal bank. Not the bank solely for Muslims, "said BI Deputy Governor Siti Fadjriah. BI task
in improving the Islamic financial system must be continuously improved over the rapid growth of
Islamic financial transactions. BI Deputy Governor Siti Fadjriah himself has stated Bank Indonesia
(BI) resolve to formulate the strategy of market development of sharia, so the share of five percent
compared to conventional bank faster than the current reached about 2.2 percent. In the end,
clearly referring to the rail Islamic Banking Act, the State Officials who carry out government
policy to ask the manager of national Islamic banking can be a reliable domestic player and has a
quality of service and performance of international standard, not something impossible. (Data
source: Zaenal Abidin) . If the economic development of Europe's Islamic world (the Christian) as
in Britain, Australia, Japan already use the system of Islamic economics, Indonesia Why not ...
because the Islamic economic system is identical to the economic populist who can rival Neolib
and Capitalist system .... But that has been describedrant about the middle of the economic system
is a definition that is not contained in maszab and the world economic system, economic system is
a center that does not have standard definitions and their origins ... this is a definition that is duping
the people and nation.
Be consistent against a system where we stand, Neolib, Liberal, Capitalist or sharia or
Economy / economic populist ... ... if we speak of democratic economy or shari'a, the economy is
identical to the 45 Constitution and Pancasila, ... ... and to Economics Sharia, which is the State of
Indonesia is lagging far behind the European countries that have long switch and developing
Islamic Economics. Investment opportunities from the Middle East, the government must prepare
at least five things namely the completeness of legal instruments, the business environment that
supports, investment friendly policies, policies of tax incentives, and human resource development
(HRD). Certainty of law and deregulation of the licensing process is one of the key to create a
business atmosphere that kondusif.Berdasarkan OECD and World Bank assessment of the
effectiveness of regulations in support of the business climate, although has shown an increase
with the implementation of some deregulation, Indonesia is still relatively poorly categorized that
my level with countries like Hungary and Mexico. In order to increase the attractiveness of
Indonesia as an investment destination, especially in the Islamic financial sector, Bank Indonesia
needs to enforce the liberalization of entry and exit of foreign investment funds. Where foreign
investors need to freely determine the currency denomination would they invest in Indonesia, as
well as free to determine the amount and type of currency in order to return back to the state fund
investment returns and Issues asalnya.Fakta that occurs either Factor Internal and External
Factors, where the development of Islamic finance and banking continue rising up as one of the
world crisis of globalization in the field of Sukuk, which according to the fatwa No. understanding
sukuk. 32/DSNMUI / IX/2002 issued by the Indonesian Ulema Council is a long-term securities
based on Islamic principles issued to the holders of the issuer of Islamic bonds, which requires
issuers to pay the income to the holders of Islamic bonds in the form of profit sharing margin / fee,
and pay back the funds bond at maturity. Meanwhile, according to the Decision of the Chairman of
the Capital Market Supervisory Agency and Financial Institution No. KEP-130/BL/2006 Year
2006 Regulation No. IX.A.13, Sukuk are Islamic securities in the form of certificate or proof of
ownership are worth the same and represent an integral part of investment or does not consist of:
the ownership of certain intangible assets, the value of benefits and services for specific projects or
activities of asset specific investments, and ownership on assets of certain projects or activities of a
particular investment. Where on the stage of fund collection and disbursement stages. At that stage
pengimpunan funds, law relationship between Shahibul Maal who entrust their funds to the Islamic
Bank and the Bank as mudarib who will take over management of the fund. At that stage the
distribution of funds legal relationship between the Islamic Bank as Shahibul Maal and customers
as mudarib which will utilize the funds from Bank where there are two legal relationships
occurred, ie at the stage of fund raising, legal relationship is between the depositor (customer
creditors) andbank. At that stage the distribution of funds legal relationship that happens is the
bank and customer debitur.Berdasarkan picture above there are similarities engagement used in the
legal relationship between the Bank and their Clients are starting with an agreement or
contract. There are similarities and differences between treaties and covenants. The equation is
such that in the agreement or contract based on an agreement (consensus) of the parties. The
difference between Interest and Benefit Sharing, Islam forbids interest and justifies the
results. Both provide benefits, but have fundamental differences as a result of the difference
between investment and disposal of money. In investment, the work done has risks, and therefore
contain elements of uncertainty. In contrast, disposal is money that does not have the risks of the
activity, due to a certain percentage rate determined by the amount of capital. In accordance with
the above definition, save money at Bank Islam, including categories of investment.The size of the
acquisition of the return was dependent on the results of operations that actually happened and by
the banks as fund manager.
Thus, the Islamic Bank can not just distribute the money. Islamic banks must keep on
trying to improve the return on investment so that more interesting and more to give confidence to
the owner dana.Perbedaan between interest and profit sharing can be explained in the following
table: is on how to calculate the Profit Sharing Bank with the principle of profit sharing in
collecting funds both paid-up capital, public funds and loans from other banks or other parties
should not deviate from the principles of Islamic sharia, in other words in managing these funds
must comply with the provisions of sharia. In the operation of bank capital with public funds or
loans of other parties going cooperation in funding for the distribution of financing between banks
and lenders so that the contracts had been signed musharaka. All benefits arising from utilization
of such funds distributed to the owners of the funds with the agreed rules.Sharing method there are
three categories of revenue sharing, profit sharing and profit loss will be explained the difference
sharing.Berikut respectively., 1.Revenue Sharing, which is distributed gross income, 2.Profit
Sharing, which were distributed and profit / loss, but if there is a loss is still borne by banks and
3.Profit and Loss Sharing, which distributed the profits (if the company / bank profits) and if
mudharib losses, maal Shahibul bear.Decisive for the result so decisive for the outcome variables
are: a. Revenue / profit bank, b.Nisbah sharing between customers and banks, c.Rata nominal
average customer funds and Society funds d.Rata average bank. The following will be presented
examples of calculations for the results to the principle of mudaraba wadi'ah.
 Introduction, in 1930 turned ugly or broke ganjing economy, where the mainstream
economic system which is also called the dominant economic system in the world at that time as
the mainstream in developed countries particularly the USA to destroy the joints of human life. So
at that time, great Depression occurs early 1930, the U.S. president, Franklin D. Roosevelt
questioned the existence of an alternative economy to respond to major depression that occurs at
the time.Depression is aware of the world, it turns out the mainstream economic system that has
been received at that time to bring havoc to the life of mankind.Viewing the factual phenomenon
of world economic system it appears the demand to find alternative economic system is, in fact we
can take pictures blurry face of capitalist economics in achieving its goals. One of the most
important topics into the discourse at that time was the topic of "alternative economy." Therefore,
the real economic problems are located to how to obtain wealth, and wealth lies not exist or
not. Because the root of the problem is situated to the concept of how the acquisition or ownership
of (property), including about the absurdity of the transaction in issue ownership (property), and
the distribution of wealth in the midst of society. On this basis that the Islamic economic system is
the laws that regulate three main topics namely ownership, management, and distribution of
wealth. Three of this is that later became the basis of Islamic economic system itself. Three things
this is forgotten in the system ekonomimainstream dominant, so that failures will continue to come
and go. Indonesia as a country which adheres to the west or the capitalist economic system, it also
snagged and bawdy affected by the economic problems of the world. Maka crisis after the
economic crisis that continues to recur, as in 1930, 1970, 1980, 1999 and 2007 - have been clearly
proved that the capitalist and socialist economic system that bases itself on the philosophy of
materialism - secularism has failed to respond and present a solution to economic problems and
humanity. After going through a long journey, Indonesia finally recognized the existence of
alternative economic demands of the Islamic economic system in the field of Islamic banking is in
fact already exist in public life. However, it was not enough to give legitimacy existence of Islamic
banking system in Indonesia Since the legitimacy they do not provide adequate space for the
operation. To compare the development of Islamic banking, we can see the development of legal
systems of Islamic banking in our neighboring countries such as Malaysia, So, the motion of the
system of Islamic banking in Malaysia is incredible and can provide a significant contribution to
national economies in a system of Malaysia. The question arises, why in Indonesia with a majority
Muslim country in the world it can not be run according to our wishes, is there anything wrong
with us? To answer these questions, we need to do the discussion and analysis of some aspects and
problems facing the Islamic banking in Indonesia as follows: 1. Historical development of Islamic
banking system in the world and Indonesia, 2.Prospects of Islamic banking in Indonesia, and
3.Supporting legal and regulatory aspects of Islamic Banking in Indonesia by trying to compare the
legal aspects of Islamic banking in Malaysia.
The history of Islamic banking in the World, the term Islamic banking or Islamic
Banking is a new phenomenon in modern economic world, they appear along with the intense
efforts made by Islamic scholars in Islam who is believed to support the economy will be able to
replace and repair the conventional economic system based on interest.That's why Shari'ah
Banking system to apply interest-free system (interest free) in operation, and therefore the most
common formula for defining Sharia Banking is a bank that operates in accordance with Islamic
Shari'ah principles, with reference to the Holy Quran and Sunnah as the basis for the legal and
operational basis. Theoretical concept of Islamic banking first emerged, according to Remy
Sjahadeini Sultan in his book that the idea of the writers who first expressed the idea of a Sharia
banking is Anwar Iqbal Qureshi, Naiem Siddiqi, and Mahmmud Ahmad. Then a more detailed
description of this idea written by Al-Mawdudi (1950). Maududi Uzair a pioneer of Islamic
banking theory with his work entitled A Groundwork for the Interest Free Bank. The thought that
has emerged in the 50s did not immediately give way to the field for Islamic banking. In the 1960s,
banks Shariah only be theoretical discourse. There has been no concrete steps that enable the
practical implementation of ideas. In fact, awareness has emerged that the bank's Shariah is a
solution to economic problems generate social welfare in Muslim countries.
Until in 1963 from the institutional point of which is the first Islamic Bank is the MYT-Ghamr
Bank.Founded in Egypt, with the help of capital from the King Faisal of Saudi Arabia and is the
target of Prof. Dr. Abdul Aziz Ahmad El Nagar. MYT-Ghamr Bank being successfully integrate
the German banking management with the principles of Islamic muamalah by translating it in the
bank's products are suitable for rural areas is largely oriented towards the agricultural
industry. However, due to political issues, in 1967 MYT-Ghamr Islamic Bank closed. Then in
1971 in Egypt successfully re-established Islamic bank with the name of Nasser Social Bank, the
only purpose is more social than commercial. Who's first Islamic Bank is the private nature of
Dubai Islamic Bank, established in 1975 by a group of Muslim businessmen from various
countries. In 1977 established two Islamic banks in the name of Faysal Islamic Bank of Egypt and
Sudan. And in that year the government also established the Kuwait Finance House Kuwait.
Internationally, the development of Islamic banking was first initiated by Egypt. Because Egypt
has inspired the first Islamic economic conference in Mecca in 1975. As a follow-up
recommendations from the conference, two years later, was born the Islamic Development Bank
(IDB) which is then followed by the establishment of Islamic financial institutions in various
countries, including countries not members of the OIC, such as the Philippines, Britain, Australia,
United States and Russia.
Since then approached the early decades of the 1980s, Islamic banks are popping up in
Egypt, Sudan, the Gulf states, Pakistan, Iran, Malaysia, Bangladesh and Turkey. In broad outline
of Islamic banking institutions are emerging that can be categorized into two types, namely the
Commercial Bank Islam (Islamic Commercial Bank), as Faysal Islamic Bank (Egypt and Sudan),
Kuwait Finance House, Dubai Islamic Bank, Jordan Islamic Bank for Finance and Investment,
Bahrain Islamic Bank and Islamic International Bank for Finance and Development; or investment
institutions in the form of an international holding companies, such as Dar Al-Maal Al-Islami
(Geneva), Islamic Investment Company of the Gulf, the Islamic Investment Company (Bahamas ),
Islamic Investment Company (Sudan), Bahrain Islamic Investment Bank (Manama) and the
Islamic Investment House (Amman). On his journey Sharia-based banking system, is increasingly
popular not only in Islamic countries but also the western countries, characterized by the
proliferation of banks that apply the concept of sharia. The development of Islamic banking or
banking with the concept for the results indicate the concept of sharia in the management of wealth
/ money is received the universal habit of mankind, because obviously konsepriba or interest in
Islam is strictly prohibited and contrary to the concept of humanity. History of Islamic Banking in
Indonesia, As the development of Islamic banking in the world of thought-especially Islamic
countries, Indonesia joined the impact of the charges taxable scholar-thinking Muslim scholars
Indonesia. Indonesia as the State's largest majority Muslim population in the world appears of
thinking about the need to implement sharia-based banking appeared in 1974. the emergence of the
idea of sharia-based banking thinking in a Indonesia-Middle East organized by the Institute for
Social Sciences (LSIK). The development of thinking about the necessity of Indonesian Muslims
have their own Islamic banks begin to blow since then, as the emergence of a new awareness of
the Muslim intellectuals and scholars in the economic empowerment of the community. At the
beginning it had been a long debate on bank interest law and legal alms tax vs. among the clergy,
scholars and Muslim intellectuals. Differences and debates among scholars or ulama 'is
astounding, the difference of opinion among scholars Indonesiamengenai interest broadly divided
in three groups namely; group that justifies, mengatakansyubhat groups and groups that
proscribe. It is very determine public response to Islamic banks. Syihab Umar, one of NU ulama
(Nahdatul Ulama) as the representation of scholars have argued that bank interest is permissible,
based his opinion on several grounds. 1. the amount of interest money collected and provided by
banks to customers is much smaller than the usury imposed in the days of ignorance. 2, banks do
not make a flower collector bank itself and its customers gain huge profits or otherwise will not
feel harmed by granting.3.Credit retrieval goal of the debtor at the time of ignorance is for
consumption, while at the aims produktif. 4. the willingness between the two parties to a
transaction, as well as skill in buying and selling with the principle of willingness.
The opinions Majelas Legal Affairs Committee as the organization Muhammadiyah in Indonesia's
second largest bank decided that the interest rate provided by state-owned bank to its customers, or
vice versa during the accepted included in doubtful cases. But of those factors, only the offending
bank interest granted by state banks, by stating that the interest given by the state is allowed,
because the interest rate given is still relatively low, if compared with the interest in private banks.
Nahdatul Ulama organization as the largest Islamic organization in Indonesia, in addition to
Muhammadiyah, the issue of bank interest by several times a session, with the polarization of
opinion on the three groups, namely, haram, halal, danSyubhat. However, although there are
differences of views, Lajnah Bahsul Masa'il decided that a more cautious is the first opinion, that is
bank interest.
The differences among the Muslims did not discourage the emergence of Islamic banking
in Indonesia, pioneering the practice of Islamic banking in Indonesia began in the early period of
the 1980s, through themed discussions of Islamic banks as the economic pillars of Islam. The
characters involved in these assessments, to name a few, among which are Karnaen A
Perwataatmadja, M Dawam Rahardjo, AM Saefuddin, and M Amien Aziz. As a pilot, the idea of
Islamic banking is practiced in a relatively limited scale of which dibandung (Temple At-Tamwil
Salman ITB) and Jakarta (KoperasiRidho Gustavo). As an illustration, M Dawam Rahardjo in his
writings never make recommendations of Sharia Banks as an alternative concept to avoid the
prohibition of usury, as well as trying to answer the challenge for the financing needs for business
and community economic development. The solution mentioned in passing with financing
transactions based on the three modes, namely mudlarabah, musharaka and murabaha. More
specific initiatives on the establishment of Bank Islam in Indonesia has only done 1990. On
August 18 to 20 years, the Indonesian Ulema Council (MUI) held interest rates and banking
workshop in Cisarua, Bogor, West Java. The result of the workshop were then discussed in more
depth at the IV National Congress of the MUI in Jakarta August 22 to 25, 1990, resulting in the
mandate for the formation of working groups establishment of Islamic banks in Indonesia. The
working group is called Team Banking MUI to be given the task to approach and consultation with
all parties concerned. As a result of the MUI Banking Team work is the establishment of PT Bank
Muamalat Indonesia (BMI), an appropriate deed of foundation, established on November 1,
1991.Since 1 May 1992, official BMI operates with initial capital of Rp 106.126.382.000, -. Until
September 1999, BMI has had more than 45 outlets spread throughout wilayahIndonesia.
After the establishment of Bank Muamalat Indonesia (BMI) was followed by the establishment of
other SRB and SRB-proven Islamic banking is not affected by the monetary crisis in 1998 then
finally followed by the establishment of banking, general banking build sharia-based banking.
Prospects of Islamic Banking in Indonesi, bank service is very important in a country's economic
development. Banking services are generally divided into two goals. First, as the provider payment
mechanism and an efficient tool for the customer. For this, the bank provides cash, savings, and
credit cards. This is the most important role of banks in economic life. Without the provision of
efficient payment instruments, then goods can only be traded by way of barter that takes
time. Second, by accepting savings from nasabahdan lend it to those who need funds, meaning the
bank to increase the flow of funds for investment and more productive utilization. If this role goes
well, the economy of a country will increase. Without the flow of these funds, the money just stay
in the pocket of someone, people can not get a business loan and can not be built because they do
not have the loan fund. In Islam are not allowed to settle to the fund or not produktif.Sehingga
concept of Islamic banking, which is how the funds can all build productive economic
community.
Meanwhile, last LPPS Islamic banking in 2006 Bank Indonesia During 2006 the number
of banks conducting business based on sharia principles has increased, ie as many as 1 each
Business Unit Syariah (Sharia) and 13 SRB. The industry at the end of 2005 there were 3 Islamic
Banks (BUS), 20 UUS and 105 SRB. Along these improvements, the office network of Islamic
banks (including cash offices, branch offices and Sharia Service Unit) also experienced an increase
of 40 office premises, in order to be 636 by the end of 2006.Performance of Islamic Banks and
Islamic Business Unit During 2006, Islamic banking industry has increased the volume of business
amounting to Rp 5, 8 trillion, so that by the end of the reporting period to Rp26, 7 trillion. The
increase was enlarging share of Islamic banking assets to total assets of national banks from 1.4%
at the end of 2005 to 1.6% by the end of 2006. (Bank Indonesia.2006.LPPS Islamic Banking)
On the asset side, according to Deputy of Bank Indonesia Siti Fadjrijah, Islamic banking has
increased to Rp 29.2 trillion (1.69 percent of total banking industry assets) when compared to the
end of 2006 amounted to Rp 26.7 trillion (1.55 percent of total assets of the banking industry). For
third-party funds (TPF), the position in June 2007 were Rp 22.71 trillion, an increase compared to
the end of 2006, which amounted to Rp 20.67 trillion. Financing or credit as at June 2006
amounted to Rp 22.97 trillion, an increase over the end of 2006, which amounted to Rp 20.44
trillion.As for FDR (Financing to Deposit Ratio / LDR) as at June 2007 was 101.1 percent, up
from the position of the end of 2006 which amounted to 98.9 percent. BI target in 2007 this total
Islamic banking assets grew to 2.8 percent of total banking industry assets. And in 2008 reached 5
percent and will grow in 2015 to 15 percent.
This indicates the development of Islamic banking in Indonesia something that can not be
underestimated. There needs to be addressed by all parties, that the prospect of Islamic banking
will be able to provide value (value) is greater to the national economy.Legal Aspects of Islamic
Banking in Indonesia, as stated above, the current Islamic banking in Indonesia is promising even
though the motion is not as fast as conventional banking, this is a result of systems and devices that
support sharia law does not provide the widest space for Islamic banking to grow. We can see prior
to the revision of banking laws or the emergence undanga Act No. 10 of 1998 concerning banking,
there are no legal instruments that support the operational system of Islamic banks, except Law
No. 7 / 1992 and Government Regulation No. 72 of 1992. In the Law No. 7 of 1992 was
understood as the existence of Islamic banking for the bank as well as Islamic banking should be
subject to banking regulations generally what we call conventional banks. After the revision of
banking legislation paraturan namely the emergence of Law. 10 of 1998 concerning Amendment
to Law no. 7 of 1992 on Banking, stated that the Islamic Bank is a commercial bank conducting
business based on sharia principles in its activities to provide services in payment traffic. In
conducting its activities, the Islamic Bank adheres to the principles as follows: he principle of
justice, this principle is reflected in the application of benefits on the basis of profit sharing and
taking the profit margin agreed between the Bank and the Customer.The principle of equality,
placing Islamic Bank depositors, customers are users of the fund, and the Bank on an equal footing
and equal. This is reflected in the rights, obligations, risks, and benefits are balanced among
depositors, customers are users of the fund, and the Bank. Principles of Peace, the Islamic Bank's
products are in accordance with the tenets of Islam Muamalah, among others, the absence of the
element of riba and the application of zakat wealth.Thus, customers will feel physically and inner
tranquility.
The implementation of the principles of the above is what is the main differentiator
between Islamic banks with conventional banks. Where Banks Shariah / Islamic banking in
Indonesia as a formal system has been developed since 1992 in line with the enactment of Law
no. 7 year 1992. However, the Act has not been given a solid legal foundation for the development
of Shariah banks because they have not expressly regulate the existence of banks based on Shariah
principles but Bank Profit Sharing. Understanding the intended Bank Profit Sharing in the Banking
Act No. 7 of 1992 has not been included in a permanent sense of Islamic Banking which has a
wider scope than the outcome. Similarly, operational requirements, until 1998 there has not been
fully operational provisions that specifically govern the activities of Islamic Banking business. In
Article 6 letter (m) and section (e) is not mentioned Bank Syariah (Sharia), but only Bank Profit
Sharing. Then this rule followed by PP. 72 year 1992 on the banks based on the principle of profit
sharing. Application of the Banking Act No. 10 years, 1998 of changing the Law. 7 of 1992 which
was followed by the issuance of a number of provisions of the conduct in the form of SK Board of
Directors of BI / Regulation of Bank Indonesia, has given a stronger legal basis and broader
opportunities for the development of Sharia banking in Indonesia. The legislation gives ample
opportunity for the development of Shariah banking network, among others by opening the branch
office license Sharia (Sharia) by conventional banks. In other words, commercial banks allowed to
run its business activities conventionally and at the same time can do so based on Islamic
principles. Law No.10 of 1998 on the legal basis penerapanDual Banking System in Indonesia, the
effect of that is the Islamic banking does not stand alone (standalone), so in still have its main
office to conventional banks. If so the existence of Islamic banking is just one part of the
development program of conventional banks. To achieve the goal desired by the required
independence of Islamic banking Islamic banking with its own settings of Islamic banking. In Law
No. 10/1998 is also not yet been maximized because in this law aspects of Islamic banking and
many supporters have not adopted a consistent basis. Because judging from the potential of Islamic
banking were truly exceptional, not only Islamic banking may receive the greatest share below 5%
of the national conventional banking, Islamic banking can get constitute 50% even more than that,
if legitisamsi law given in accordance with The actual concept of sharia in kaffah and
consistent. From what has been presented the Chairman of the National Islamic Council (DSN),
KH Ma'ruf Amin. According to KH. Ma'ruf Amin, the Law number 10/1998 has not been done to
the fullest.Much remains to be repaired from the law, Islamic banking and conventional banking
has a different character. Therefore, there should be rules or laws of separate Islamic banking to
accelerate growth and development of Islamic banking. Because Ideally market share (market
share) Islamic banks and conventional banks is a fifty-fifty.
 There is a revision of the Bank Indonesia Law Law.23/1999 on Bank Indonesia (BI) to
provide support to the development of Islamic banking in Indonesia, where in Law no. 23/1999 BI
commissioned to prepare sets of rules or their supporting facilities that support the operations of
the Bank of Sharia.Both the Act on the basis of the legal application of Dual Banking System in
Indonesia. Dual Banking System in question is the implementation of the two banking systems
(conventional and Islamic) side by side in serving the national economy whose implementation is
set in a variety of regulations (Bank Indonesia, October 2001). The role of Bank Indonesia as the
Indonesian Central Bank monetary authority is to assist banks experiencing liquidity
problems. According to the article. 11 paragraph 1 of Law No. 23/1999 on Bank Indonesia is able
to provide credit or financing based on Sharia principles for a maximum period of ninety (90) days
to the bank to cope with short-term funding difficulties of the bank. Only trouble occurred when
the bill also provides that the conventional banks and Islamic banks are required to provide
collateral in the form of high-quality collateral and liquid securities and a minimum value at the
amount of credit or financing it receives. While the purpose of high-quality collateral and liquid
securities are included securities or bills issued by the government or other legal entity which has
authority to do so. As for Islamic banking to be able to provide collateral in the form of securities
and / or bills that are not flowering, yet perhaps because of the money market (financial market) is
based on sharia principles undeveloped INDONESIA. Regulations Supporting Sharia Banking in
Indonesia, the existence of the Law number 10/1998 on banking and Law. 23/1999 on Bank
Indonesia became a major cornerstone supporting Islamic banking in Indonesia today, with the
weaknesses of both these laws and regulations, plus the issue here is the relevant supporting
regulatory development of Islamic banking in Indonesia. Without the supporting regulations to the
tools of Islamic banking transactions will meet the difficulties and even be fatal. Regulation of
supporters of Islamic banking is about the regulations referred to the BI about the Islamic banking
operations, Bonds, Capital Markets, Civil Law in Islamic banking dispute settlement
First, the Law no. 23 of 1999 concerning Bank Indonesia (BI), mandated to BI to prepare sets of
rules or their supporting facilities that support the operations of the Bank of Sharia. In an effort to
encourage the growth of Islamic banking industry is still in early stages of development, some
important things to get attention by the Bank include: Framework and device settings Islamic
banking operations is incomplete; Settings market coverage is still limited; supporting institutions
that have not been complete and effective ; efficiency of Islamic banking operations are still not
optimal; need for the system of rules and transactions in Islamic banking and foreign investment
rules in Islamic banking (prior to the Act or the Regulation of Investment in the banking sector this
syariah.Peran perceived lack of Bank Indonesia, many that must be considered by the Bank of
Indonesia concerning the making of regulations or rules of banking in Indonesia, so that the
position of Islamic and conventional banking within a single level.Bank Indonesia as the
Indonesian central bank with the right and authority should have more freedom to make a more
comprehensive policy related to the policy development of Islamic banking. Role of Indonesian
banks is incredible if you look at the mandate given by the Act. 23, 1999, now lives how BI
mamainkan his role in the future related to the development of Islamic banking in Indonesia.
Second, the relation to securities or government bonds (SUN) in Indonesia which is not governed
by sharia so that its implementation will meet many obstacles and have an impact on investment
understanding of aspects of sharia on different sides. In 2006 alone the Middle East countries
(Middle East) offers a fund of up to 8 billion dollars, equivalent to Rp 71 trillion, to buy
Indonesian Islamic bonds or Sukuk. Proceeds from the issuance of the Sukuk will be used to
finance electricity projects. Rich countries of the Middle East now have abundant funds due to
high world oil prices. Amid the flood of money, Middle-East countries were distraught to find a
place of investment. Because until now few countries in Europe and the United States shut down
due to bombing the WTC twin towers, or an event known as 9 / 11. As a replacement, targeting the
Middle East countries of Asia, including Indonesia, to put their funds are. If we see Act No. 24 of
2002 concerning Government Securities / bonds if used runway of Islamic bonds will be
ambiguous, because the law is still a lot of words are not directly related to the interest that is
contrary to the concept of sharia, or usury. So, in reality, corporate bonds with sharia principles has
reached dozens (14 to date, 6 and 8 ijarah mudaraba).
Examples of cases, Indosat Bonds has no reference to positive law such as laws or
regulations that became Bapepam shading. Instead Indosat Syariah Bonds shelter under the
National Sharia Board Fatwa Indonesian Ulema Council (MUI DSN) No. 32 on Bond No. 33 on
the Shariah and Shariah Bonds Mudharabah. Other cases, corporate bonds with sharia principles
which later also can take shelter under DSN MUI Fatwa No. 41 on Bonds. Sharia bonds in the
fatwas that have been mentioned have redefined as Long-Term Securities based on Islamic
principles that can be traded. Departure of these cases, judging from the glass eyes of the law and
justice, then this is reasonable doubt, so as to give force of law in accordance with legal systems in
Indonesia, the need for a separate law on Islamic bonds, so as to provide legal certainty to
investors and others.Third, the supporting devices as conventional banking Islamic banking, it is
necessary to regulate trade in shares of Islamic banking is capital markets principled
syariah.Kegiatan Capital Market in Indonesia regulated in law No. 8, 1995 ("Capital Market
Law"). Article 1, clause 13 of Law 8 / 95 states that "Capital Market is an activity concerned with
the Public Offering and Securities Trading, a Public Company relating to the issuance of securities,
as well as institutions and professions related to Securities." While the Securities, the Capital
Market Law Article 1 point 5 is expressed as: "suratberharga namely letters of credit, commercial
paper, bond stock, the evidence of debt, investment units of collective investment contracts, futures
contracts on securities activities and any derivative securities."Law no. 8 of 1995 does not
distinguish whether the activity is conducted based on the Capital Market-prisnip prisnip sharia or
not. Thus, based on the Capital Market Law in Indonesian Capital Market activities can be
conducted in accordance with the principles of sharia, and can also be done not in accordance with
Islamic principles. (KarimSyah Law Firm, 2005. Necessity of Laws and Regulations Regarding
Capital Market Under the Sharia. Jakarta) so that in implementation of Islamic banking will
provide uncertainty whether in accordance with Islamic principles or not.Therefore, it is necessary
if the manufacture of legal instruments related to the existence of Islamic capital market to support
the travel of Islamic banking.
Fourth, Prior to the amendment of Law No. 7 / 1989 on the Religious Courts to the legal
constraints in Indonesia, Islamic banking authority to adjudicate disputes is in the hands of district
courts, the district court is not using Sharia as the legal basis for settling disputes. And we know
the religious court has limited authority Law. 7 / 1989.These institutions can only examine and try
the case-case concerning marriage, inheritance, waqaf, grants, and charity. Religious Courts can
not check out contemplates the fifth field. Based on the above background, the imperative to
establish a permanent institution that works to resolve the possibility of a civil dispute between
Islamic banks with customers is extremely urgent, then founded an agency that regulates the legal
matter and / or based on the principles of Shari'ah. In Indonesia, the agency is known by name or
BAMUI MuamalahIndonesia Arbitration Board, which was established jointly by the Attorney
General of the Republic of Indonesia and the MUI. But saying until before Law No. 7 / 1989
regarding Religious Judicature amended, the agency has not worked and civil disputes between
Syariah banks settled with the customers in the District Court. With the release of Law No. 3 of
2006 concerning Amendment to Law No. 7 / 1989 regarding Religious Judicature, was approved
by the President of the Republic of Indonesia. The birth of this Act carry major implications of
legislation governing indangan property, business and commerce at large. In article 49 point i
mentioned clearly that religious court duty and authority to examine, decide and resolve cases at
the first level among the people who are Muslims in the field of Islamic economy.
In the explanation of the Act stated that what is meant by an act of Islamic economics or business
activities conducted according to Shariah principles, among others, include: a. Islamic banks,
microfinance 2.Lembaga sharia, c. Shariah insurance, d. reasurasi sharia, e. Shariah mutual fund,
f. Islamic bonds and medium-term Islamic securities, g. Islamic securities, h. Shariah financing,
i. Pawnshop sharia, j. pension funds and financial institutions shari'ah k. shariah
business.However, the authority held by the court, will not run as expected without any Islamic
concept is supported by comprehensive sets of rules of civil law in Indonesia, due to the legal
device used is the book of civil law Act (KUHPer), which incidentally has not bersusuaian with the
lawIslamic civil law. For that we need Islamic civil law (sharia) that will govern civil disputes in
Islamic banking. It is considered very important to avoid any legal ambiguity, on the one hand the
concept of sharia be applied in Islamic banking, but on the other hand related settlement was based
on sharia law that in fact the Dutch heritage.
The conclusion, of some description above: the history of banking in the world and
Indonesia, the prospect of Islamic banking in Indonesia, supporting legal and regulatory aspects of
Islamic banking in Indonesia and the comparison of Islamic law in Malaysia, the author gives the
following conclusion: 1. Very promising prospects for Islamic banking in Indonesia, to contribute
to the nation's economy and State, 2. There should be an independent Islamic banking rules that
will be more comprehensive in its regulation, 3. Bank Indonesia needs a courage to make new
breakthroughs and super vision of Islamic banking with the making of policies related to the
development of Islamic banking in Indonesia and 4. It needs a supporting independent / separate-
related development of Islamic banking such as Islamic bonds, Islamic capital market and Islamic
civil law. Departure from the conclusion, the writer if necessary to give advice, as follows:
1. Because prospects for Islamic banking in Indonesia was incredible, so we should bear all eleman
society and the State to participate in providing support related to the development of Islamic
banking in the future, 2. For the sake of independence and the kaffah implementation of sharia
banking in Indonesia, the government and the Legislature should jointly create an independent
Islamic banking regulations,3. Role of BI in the course of Islamic banking is very large, so that BI
needs to make policies more comprehensive and maximum to support Islamic banking. This may
be done by adding a human resources who truly understand the Islamic economy is expected to
contribute a comprehensive and maximum rate of Islamic banking in the herd 4. Government and
the Legislature also required to make the legislation relating to Islamic bonds, Islamic capital
market and Islamic civil law as an instrument supporting Islamic banking. (Data source:
www.WordPress.com weblog / Jufrism 's.Weblog).
Related to the History and Development of Islamic Economic described based on data
sources and issues that develop, let us examine and analysis of the Researcher Fiscal Risk
Management Division of Ministry of Finance of the Islamic economic system is increasingly
popular nowadays. Not only in Islamic countries, but also in Western countries.This is marked by
the increasing number of banks applying the concept of sharia. Looking at these developments, it
is also possible on all aspects of the future economy will be based on sharia. This shows the values
of Islam can be accepted in many circles because it is universal and not exclusive. Those values,
such as justice and equal treatment in gaining business opportunities. In Indonesia the concept of
Islamic economics were adopted since 1991 that begins with the establishment of Bank Muamalat
Indonesia (BMI). At first inception, the BMI has not received wide attention. On his way,
especially since the MUI issued a fatwa against unlawful bank interest, Shariah-based bank to
appear, followed by the emergence of other Islamic-based financial institutions, such as Islamic
insurance that does not mushroomed as Islamic banks. In the last three years the Islamic banking
industry has developed rapidly and was accompanied by the increasing complexity of the problems
and challenges. The industry at the end of 2005 there are three Islamic Banks (BUS), 19 Sharia
Unit (UUS), and 92 Sharia Rural Banks (BPRS). By December 2007 the number of BUS not
increased, but the number increased to 26 and UUS SRB to 114. In line with the increase in bank
office network, in the period 2005-2007 this industry has increased business volume is quite large,
from Rp 20.9 trillion at the end of 2005 to Rp 36.5 trillion in 2007. Third party funding (deposits)
also increased from Rp15, 6 trillion in 2005 to Rp 28.0 trillion in 2007.
Channeling of funds through financing activities provided (PYD) Islamic banking also increased
from Rp 15.2 trillion at the end of 2005 to Rp 27.9 trillion in 2007. Based on the type of use, most
financing is still focused on three types of financing, which accounts mudaraba 59.24 percent,
19.96 percent of financing, and Musharaka financing amounting to 15.77 percent.Financing
growth is still quite high in the real sector conditions less favorable due to increased inflationary
pressures, have an impact on the increasing number of financing problems (NPL).
At the end of 2005 NPLs remained at the level of control, the ratio of NPF (gross) rate of
2.8 percent.However, in 2007 increased to 4.05 percent.Profitability of the session, in 2005,
Islamic banking can record level of profit of Rp 238.6 billion, increased to Rp 540.08 billion in
2007.Along with improved profitability, the ratio of profit to assets under management increased
from 1.35 percent in 2005 to 1.78 percent next year 2007.Tantangan Islamic banking conditions in
the coming year is expected to continue to improve.This is evidenced by the high interest of the
community towards Islamic banking. In order to increase the reach through easy to open a service
office, is expected to give effect to the interest of the community. On the other hand, international
opportunities utilizing foreign investment, particularly from the Middle East into the system of the
Indonesian economy is still wide open. International Islamic finance industry shows very high
growth which provide great opportunities for the Islamic financial system. Hope to issue sukuk
become even greater with the interest the government issuing foreign currency-denominated global
sukuk. This has the potential to increase the variation of Islamic financial instruments that will be
very useful for the Islamic financial system liquidity.In line with global economic developments
and the increasing interest of the community, the challenges facing Islamic banking.Relatively
young age, at least there are three major challenges of Islamic economics. First, a test of credibility
of economic and financial system.Second, how Islamic economy can improve welfare and reduce
poverty and unemployment.Third, sets of rules, laws, and policies, both nationally and
internationally. Economists Islam in Indonesia, which consists of academics and practitioners have
formed an organization the Association of Indonesian Islamic Economics (IAEI) who stood up and
declared on 3 and 4 March 2004 in the Vice President of the Republic of Indonesia in the
momentum of the National Convention Experts Indonesia.RUU Islamic Banking Islamic
Economics , today the government is trying to develop Islamic banking.Government expects the
Islamic banking system as part of a national economic system that can respond to the national
agenda. Given the importance of economic development of sharia, the government gives its full
support for the development of Islamic economic system by making changes to Law No. 7 / 1992
on Banking into Law No. 10/1998. This law set the legal order for the existence of Islamic banks
in Indonesia.
Under this Act also, conventional banks are allowed to try to Islamic principles through
the opening of Syariah Business Unit. In 1999 the government passed Law No. 23/1999 which was
amended by Law No. 3 / 2004 on BankIndonesia.This law authorizes the BI to perform their duties
according to Islamic principles. In accelerating the growth of Islamic banking, Islamic Banking
Act presence is absolutely necessary. To that end, the government and Parliament is currently
completing the bill. Until now the discussion of Islamic Banking Bill still leaves some crucial
chapters. The crucial chapters that include articles relating to 1) the existence of the Sharia
Supervisory Board (SSB), 2) the existence of Syariah Business Unit (UUS), 3) licensing issues, 4)
dispute resolution institutions, 5) foreign ownership, 6) authorityinvestigation, and 7) an institution
authorized to set a fatwa.Discussion of the bill is expected to soon be finished. With the enactment
of this Act on Islamic Banking, is expected to be a factor of hyper growth of Islamic banking, both
in open network of Islamic banks, UUS, and the People's Bank Financing Syariah. Islamic banking
is further expected to carry a multiplier effect in the national economy. So far Islamic banking has
proven its ability in creating the nation's overall economic stability. Factually, Islamic banking has
proved its superiority in time of crisis. At the time of conventional banks experiencing the shock of
mid-1997 crisis, Islamic banking with a proven system for results survivors of the storm. For that,
the existence of Islamic Banking Act expected to further grow the national economy. Finally, the
existence of Islamic Banking Act is also expected to have an impact on investment flows Indonesia
increasing, mainly from Middle Eastern countries.
Overview: The practice of Islamic banking based business able to deal with crisis so far
and the support of Islamic Banking Act will further promote Islamic banking and runtutannya
sector. (Republika Online) (Source of data: Makmun, Republika Online, Islamic economic
system) The long journey professionals Muslims to fight the legality of Islamic banking in
Indonesia earth finally began to materialize in 2008 with the birth of the Islamic Banking Act, the
same Sharia Securities Law State (SBSN). For the stakeholders of Islamic banking, in 2008
became an important milestone after over This juridical aspects of banking operations nonribawi in
the most populous Muslim country in the world is just riding on the positive law of conventional
banking. At the beginning of Muslim professionals want to run banks that operate with a system of
revenue sharing, the principle of the law on the Banking Act No.10 of 1992. But that was not
enough, because the stuttering course of Islamic banking and proven in the first six years later only
one Islamic bank that appears on the Bank Muamalat 1992.Continued again, which then arises
previous amendment, which gave birth to Law no. 7 of 1998 which contains more detailed
provisions in it about Islamic banking. This law simply gives the umbrella conducive at the time of
early development, as evidenced Muamalat Bank branches opened in various cities. Also the birth
of a new Islamic banks or Islamic unit with commercial banks and micro-level there is Sharia
Rural Banks (BPRS) and Baitul Maal Wa Taamwil (BMT).
Now that the House plenary meeting in Jakarta on Tuesday (June 17, 2008), approved the
ratification of Bill (the Bill) into law on Islamic Banking, and a month later on July 16, 2008 the
government enacted the law in the official gazette, umbrella financing business law nonribawi in
Indonesia stepped forward more definitely. Members of the National Islamic Council (DSN),
Adiwarman A.Karim said that there are at least six new things in Act No. 21 of 2008 on Islamic
Banking. "Six it is the authority of fatwa and Islamic banking committee, coaching and supervision
of sharia, sharia supervisory board elections (DPS), tax issues, dispute resolution, and conversion
of sharia business unit (UUS) into Islamic banks (BUS)," said Adiwarman during the socialization
of the Islamic Banking Act. He explained that the business activities of Islamic banks have to
submit to sharia principles by the Indonesian Ulema Council (MUI), which is then poured in Bank
Indonesia Regulation (PBI). In the framework of the preparation of PBI, BI establish Sharia
Banking Committee which consists of the elements of BI, the Ministry of Religious Affairs, and
the public with balanced composition with a maximum 11 orang.Untuk guidance and supervision
of Islamic banks and Sharia are the selection of the technical aspects of banking and compliance
aspects on Islamic principles. From the technical side of banking supervision and supervision by
BI, while adherence to Islamic principles made by the MUI which is represented by the Sharia
Supervisory Board (SSB), which was appointed by the general meeting of shareholders (AGM) on
the recommendation of the MUI.
Regarding the problem of double taxation, the distribution mechanism of Islamic banking
products to customers who need only be done through the system of financing, rather than through
a system of buying and selling, so there is no need to worry anymore against the possibility of
double taxation on any transactions of goods between the Islamic bank with a customer.
Meanwhile, Islamic banking dispute settlement rules made by the court in religious courts. "It does
not revoke the authority of the judicial settlement of disputes in general, because if the parties have
herald in the judicial settlement of disputes in addition to religion, then the settlement is based on
the agreements," said Adiwarman.Another novelty in the Islamic Banking Act is the conversion of
a set UUS into BUS conventional commercial banks have UUS asset value reached at least 50
percent of the total asset value of its parent bank, or 15 years from the Islamic Banking Act, the
conventional commercial bank concerned shall be perform separation UUS into Islamic banks.The
challenge of crisis, although the Islamic Banking Act has existed, the challenge nonribawi bank in
the middle of a conventional bank siege are still stretched. The development of Islamic financial
system which may rapidly'm getting to really test could prove as an alternative system, on the
banking system of capitalism which is currently affected by the global financial crisis.Islamic
banking activities in Indonesia that almost all funding is still directed to the real business sector in
the domestic economy and does not have a high level of integration with the global financial
system that usury, a factor that "saving" Islamic banks from the direct impact of the crisis.
Substantially all, the "rescue" Islamic banking is operational differences with
conventional banking, where the financial system of Islam forbids lending with interest expense,
which is seen as usury, and this Islamic system forbids the derivative speculation. Instead, funding
should be on the real sector, as well as risk factors and profits are shared between the bank and
customer. herefore, if Islamic banking operations in the homeland until now remain calm doing
business is reasonable. In fact, from the analysis quoted from Islamic Banking Outlook 2009,
issued by Bank Indonesia, the growth performance of Islamic bank financing remains high until
the end of 2008 with good financial performance.Distribution of financing by Islamic banking in
2008 has consistently continued to increase with a growth of 17.6 percent from the third quarter of
2007 or to 42.9 percent in the third quarter of 2008. The amount of financing provided by Islamic
banking has reached Rp37, 7 trillion. During 2008 the service network of Islamic banks have
added as many as 130 branch offices. So now there are 1440 branches of conventional banks
having Islamic service. Geographically, the spread of Islamic banking office network now reaches
people in more than 89 districts in 33 provinces.Total BUS (Islamic Banks) increases, so that up to
October 2008 the total five-BUS. Prospects 2009, a national Islamic banking climbed in 2009 is
expected to remain in the high growth phase, which is based juridical aspects of Islamic Banking
Act makes the legal certainty and encourage increased business capacity implementation of
sharia. Also, the Act SBSN a performance booster that Islamic financial system.Then the
amendment of Tax Law provides legal certainty in a support capacity building in Islamic banks
through the withdrawal of the role of foreign investors. In the field, the conversion will be realized
some Sharia (Islamic Business Unit) to BUS (Islamic Banks). At least in 2009 are targeted, there
are 9 new Islamic banks, which are estimated six from domestic banks, namely Bukopin Sharia,
Sharia BCA, BNI Syariah, Bank Syariah and Bank Panin Victoria Sharia and Islamic Bank, as
well as the other three originated from Middle East investors , both founded by the merger of local
banks or independent.
Similarly, there will be realization of Corporate Sukuk issuance by Islamic banks to
strengthen capital base of Islamic banking. "No less important, increasing public awareness and
preference for using products and services of Islamic banks. Similarly, Islamic banking is
considered as a universal bank. Not the bank solely for Muslims, "said BI Deputy Governor Siti
Fadjriah.Namun for the Islamic banker, to support the rapid development nonribawi financing was
necessary instruments of monetary operations continue equipped sharia, because sharia monetary
operations (CSO) recently set by Bank Indonesia (BI) has not maksimal.Menurut Director of Bank
Mega Syariah (BMS) Beny Witjaksono, Islamic monetary instrument operation is not complete
because there is currently a valuable new reposurat islamic countries (SBSN). As for the "fine
tuning expansion", "fine tuning contraction" and auction facilities the absorption of funds from
Bank Indonesia (Fasbi) does not exist.BI task in improving the Islamic financial system must be
continuously improved over the rapid growth of Islamic financial transactions. BI Deputy
Governor Siti Fadjriah himself has stated Bank Indonesia (BI) resolve to formulate the strategy of
market development of sharia, so the share of five percent compared to conventional bank faster
than the current reached about 2.2 percent. In the end, clearly referring to the rail Islamic Banking
Act, the State Officials who carry out government policy to ask the manager of national Islamic
banking can be a reliable domestic player and has a quality of service and performance of
international standard, not something impossible. (Data source: Zaenal Abidin) If the economic
development of Europe's Islamic world (the Christian) as in Britain, Australia, Japan already use
the system of Islamic economics, Indonesia Why not ... because the Islamic economic system is
identical to the economic populist who can rival Neolib and Capitalist system .... But that has been
described rant about the middle of the economic system is a definition that is not contained in
maszab and the world economic system, economic system is a center that does not have standard
definitions and their origins ... this is a definition that is duping the people and nation.
We must consistently speak to the system where we stand, Neolib, Liberal, Capitalist or
sharia or Economy / economic populist ... ... if we speak of democratic economy or shari'a
economics is synonymous with the 45 Constitution and Pancasila, ... ... and to mengembangankan
Economics Sharia, which State of Indonesia has been lagging far by the States of Europe which
has long switch and developing Islamic Economics.On the basis tersebutlah problems, then it
should be Indonesian State-tips we need to do to attract Middle East investors by making
improvements in the economic field dilima Indonesia. In 2009 Indonesia must work hard to face
various challenges such as spillover major recession that hit the United States and Europe and even
toJapan, India, and China. These countries are the main destinations of Indonesian exports. In
addition, we will face either the legislative or presidential elections.Skyrocketing oil prices since
1998 has made the Middle East region as a place of abundance of liquidity. A research shows that
as of 2006 there were approximately U.S. $ 2.4 trillion to U.S. $ 2.8 trillion that is ready to invest
from countries of the Gulf region, where U.S. $ 150 billion to U.S. $ 180 billion of them
specifically for investment in Islamic finance. Any country that enjoys running Middle Eastern
investment funds are, how they attract investment and efforts are what should be done by the
Indonesian Government to convince the Arab investors to invest in the country? Countries in
South Asia is one area that enjoy the flow of investment funds from the Middle East, followed by
Chinese, London and Austrailia in the amount of billions of dollars.To be able to capture the
investment opportunities from the Middle East, the government must prepare at least five things
namely the completeness of legal instruments, the business environment that supports, investment
friendly policies, policies of tax incentives, and human resource development (HRD).With the
legalization of Islamic Banking Act and the Act of the National Islamic Securities in 1998
represents an important strategic step that has been taken by the government and
parliament.Although the actual completeness of legal instruments in the field of Islamic finance is
a very late arrival of the 16 years after the first Islamic bank established in 1992.
Indonesian state was too late 25 years compared with other countries that already have Islamic
Banking Act in 1983 and Takaful Act in 1984. The presence of these two laws have been long-
awaited presence, not only by the perpetrators of domestic Islamic financial industry, but also the
investors asing.Undang Act has provided clear direction regarding the establishment of Islamic
banks, the establishment of sharia councils, and the settlement of disputes on Islamic transactions.
However, unfortunately the law is not sufficiently attractive for investors to come given the
uncertainty about the status of the ownership (beneficial ownership) in a transaction Islamic bonds
(sukuk) and still intersection siurnya dual tax status of Islamic financing transactions.
With the existence of a rule of law and deregulation of the licensing process is one key to creating
a business atmosphere that kondusif.Berdasarkan OECD and World Bank assessment of the
effectiveness of regulations in support of the business climate, although has shown an increase
with the implementation of some deregulation, Indonesia is still considered bad categorized my
level with countries like Hungary and Mexico. In order to increase the attractiveness of Indonesia
as an investment destination, especially in the Islamic financial sector, liberalization of exit Bank
Indonesia need to enforce the entry of foreign investment funds.
Foreign investors need to independently determine the denomination of their currency to
be invested in Indonesia, as well as free to determine the amount and type of currency within the
framework of the repatriation of investment proceeds to their home country.This needs to be done
to reduce the cost burden of investors in investment, increase efficiency and encourage the
financial system is progressive and competitive. Necessity made the region a kind of one stop
service as MIFC (Malaysian Islamic Financial Centre) or the DIFC (Dubai Islamic Financial
Centre). And another factor is the taxation system which is really not attractive to investors,
especially for the Islamic finance sector since the enactment of double taxation of Islamic finance
transactions. Application of tax neutrality between conventional and Islamic systems are
absolutely necessary.In Dubai for example, all transactions performed by banks, insurance and
Islamic capital markets certainly are not double taxed because they apply the neutrality of taxation
systems they even offer a variety of tax incentive schemes. Islamic banking sector and insurance
are not taxable income for all income earned in banks and Islamic insurance in all forms of foreign
currencies by international Islamic bank, an international Islamic insurance operators as well as
business units that are under the auspices of institutions MIFC and the DIFC as well as many again
another incentive schemes linked to Islamic bonds, Islamic fund and mercury. Lack of human
resources who are experts in Islamic finance that led to a lack of product innovation to attract
investment in the Islamic financial sector, a further factor. Actually, Bank Indonesia has a banking
institution in the Indonesian Banking Development Institute (LPPI), but we've never heard of Bank
Indonesia's commitment to developing human resources of Islamic economics seriously.In the end,
with an optimistic look to the future principle in 2009 by creating a secure and peaceful
atmosphere in conducting elections, but still working hard to face the recession with continuing
improvement agenda to make Indonesia as an investment destination and a strategic business
partner for the Middle East, and becomes firmly based on Islamic economics clear legal foundation
to rival the economic system Neolib especially the middle that are not in any economic system
contained in the theories of economics in the world. (Data source: Bisnis Indonesia, Wednesday,
January 7, 2009, daniri) Relying on Facts and Issues that occur both Factor Internal and External
Factors, which the Islamic economic development continues to climb up along with one of the
world crisis of globalization in the field of Sukuk, which according to the fatwa No. understanding
sukuk. 32/DSNMUI / IX/2002 issued by the Indonesian Ulema Council is a long-term securities
based on Islamic principles issued to the holders of the issuer of Islamic bonds, which requires
issuers to pay the income to the holders of Islamic bonds in the form of profit sharing margin / fee,
and pay back the funds bond at maturity. Meanwhile, according to the Decision of the Chairman of
the Capital Market Supervisory Agency and Financial Institution No. KEP-130/BL/2006 Year
2006 Regulation No. IX.A.13, Sukuk are Islamic securities in the form of certificate or proof of
ownership are worth the same and represent an integral part of investment or does not consist of:
the ownership of certain intangible assets, the value of benefits and services for specific projects or
activities of asset specific investments, and ownership on assets of certain projects or activities of a
particular investment.
Recent innovations in Islamic finance has changed the dynamics of Islamic finance
industry, especially in the areas of bonds and securities. The use of Sukuk or Islamic sekurtias
become famous in recent years, both government and corporate sukuk, sukuk. Sukuk has
developed into one of the most important mechanism in improving the finances in the international
capital markets through a structure that can be accepted Islam.Multinational Companies,
Government, State Owned Enterprises, and financial institutions use international sukuk as an
alternative financing syndication. Islamic bonds grew and developed into one of the most popular
financial instruments markets .... (Because holding the principles kesyariahan).Reporting from the
Islamic Businnes & Finance Magazine's appeal of sukuk as an alternative to obtain fresh funds
from the Middle East has led many companies in the world looked at the financial instruments is
based on sharia economy, Hong Kong does not lag too interested to take advantage of this sweet
opportunity. Hongkong as a financial business hub in Asia is interested in developing Islamic
Finance in order to attract the interest of investors from the Middle East and the businessmen who
are interested in products based on Islamic sharia. State capitalist economy that is currently
shaking and abundance of fresh funds in the Middle East as a result of rising world oil prices could
be utilized to increase investment, especially in Hong Kong. Since July last year the Government
of Hong Kong through the Hong Kong Monetary Authority (Central Bank of Hong Kong) has
formed a working group in charge of issuing the necessary rules related to the Islamic economic
system, tax system and other regulations for sharia system can run as a conventional economic
system as the Chief Executive Donald Tsang Hong Kong when visiting the UAE
Arab.Menjelaskan .. Tsang explained that sukuk investors are not only interested by Muslims but
also from among non-Muslims, where they see the "excess" of this Islamic economic system when
compared with conventional systems. In addition, many foreign banks operating in the country
have also used the system of sharia. Hong Kong Government has also announced plans to issue
Ijarah sukuk by using the scheme in December this year. Besides Hongkon, Indonesia and the UK
will also do the same. Persistence Hong Kong to develop the Islamic system has produced
results. It was marked with the approval of China's launch of Hangseng Islamic Index Fund by the
Capital Market Supervisory Agency Hong Kong. Islamic index will be run by Hangseng
Investment Management, a subsidiary of HSBC.Nevertheless, still needed a lot of "Homework" for
this Islamic system can betu-true running and growing. Among them, Hong Kong needs to
establish sharia arbitration board as a body that will settle all disputes sharia, the need to increase
the capacity and capability of sharia supervisory board, and all parties relating to the Islamic
economic system is trying to improve skills and their understanding of Islamic economics itself .
Let us examine in depth, which will be towards the Islamic economy, whether entry into
the capital markets or are looking for foreign investors who would be subject to the provisions of
the obvious kesyariahan embrace Islamic law systems, separating the lawful and the unlawful. For
more details on the scope of our analysis of Indonesian Sharia Banking Law.Islamic Bank was
known by another name: Bank No Interest (La Riba Bank), Bank Islam (Islamic Bank), and Bank
non interest. Activities in the practice Islamic Bank is part of Muamalah.Muamalah is any contract
that allows people to exchange mutual benefits, which in the discussion in this book will be
devoted in the field of operational activities muamalah economy through the banking system. In
this book the term to be used is the Islamic Bank. Islamic Banking is the bank that operates in
accordance with Islamic Sharia principles, namely the operation procedure of the bank which
refers to the provisions of the Qur'an and Hadith. Meaning banks that operate in accordance with
the principles of Islamic Sharia is the bank in operation following the provisions of Islamic Sharia,
especially concerning the Islamic ordinances bermuamalah. In the procedure shunned feared
practices contain elements of usury to be filled with activities on the basis of profit sharing
investment and trade financing. Banks are operating procedure refers to the Qur'an and Hadith are
the banks that operate the procedures to follow orders and prohibitions contained in the Qur'an and
Hadith. In accordance with the commands and prohibitions, then who shunned business practices
are conducted at the time of the Prophet or other forms of business that have been there before but
not forbidden by him. Inside operationalize the Islamic Bank for Shariah does not deviate from the
guidelines then in every Islamic Bank was appointed manager and head just a little more controlled
banks muamalah principles of Islam. Also established a Sharia Supervisory Board oversees the
operations of the bank from the point of sharia. Inside operationalize the Islamic Bank, the first
legal basis is the Qur'an and Hadith. The following will be quoted a few verses in the Qur'an as an
operational base Islamic Bank, among others: a.Al-Baqarah: 275, which means: "those who eat
(take) usury can not stand but as stands the possessed by the devil because that (pressure) madness
", b.Al-Imran: 130, which means:" O ye who believe, do not devour usury with doubled and fear
Allah that ye may prosper "and c. An-Nisa ': 29, which means: "O ye who believe, do not eat each
other neighbor's property with a false path." Apart from a few verses of the Quran on top, then
based on positive law, a cornerstone in the Islamic Bank is Act No. 10 of 1998 on amendments to
Law No. 7 of 1992 (here in after written UUPI), because there is no specific legislation about
Islamic Banking.
To provide legal legitimacy of the Islamic banking operations had been adopted in UUPI,
although only limited diakomodirnya Sharia in the bank's operations. In Article 1 paragraph (3)
UUPI explaining Commercial Bank is a bank conducting business in a conventional and / or based
on Sharia principles in its activities to provide services in payment traffic. Understanding Sharia
principles contained in Article 1, point (13) UUPI mentioning, is the rule of Sharia Islamic law
based on agreement between the Bank and other parties for the storage of funds and / or financing
activities or other activities that are stated in accordance with Sharia, among other
financing principle of profit sharing, equity participation, sale of goods with a profit, financing of
capital goods based on the principle of pure lease without choice, or with the choice of ownership
transfer of goods from a bank hired by other parties.Government Regulation no. 72 Year 1992 on
Bank Based on Principles of Profit Sharing, in which, among other provisions concerning the
establishment of a Commercial Bank Nirbunga.Based on Article 28 and 29 Directors of Bank
Indonesia Decree No. 32/34/KEP/DIR May 12, 1999 on Banks Based on Sharia Principles, sets out
some business activities that can be done by the Islamic Bank. Other regulations that specifically
regulate Akad the business based on Sharia principles is Bank Indonesia Regulation No.
7/46/PBI/2005 about Akad Raising and Distribution of funds Banks Conducting Business Based
on Sharia Principles, as amended by Bank Indonesia Regulation No. 9 / 19 / PBI/2007 on the
Implementation of Sharia in the activities of Deposits and Funds Distribution Services As well as
Islamic Banking.Other legal basis which can be used in the making or execution of contract with
murabaha principle is based on Section 1338 subsection (1) and (3) Civil Code Book III. Another
rule which provides the basis for Islamic Banking beroperasionalnya especially in terms of
preserving the rights of the parties in Legal Studies is known as formal law is Act No. 30 of 1999
on the Alternative Dispute Resolution in the Outer Court and Law No. 3 of 2006 regarding
changes of Law No. 7 of 1989 regarding Religious Judicature (written hereinafter Religious
Judicature Act) which are used to settle the parties through the court or known in litigation.Within
these regulations there is understanding Islamic Economics and the absolute competence of the
Religious Islamic Economics in resolving disputes.
Prohibition of Riba as Conducting Background Birth of Islamic Banking
Prohibition of usury contained in Surat An-Nisa: 29, which means "O you who believe, do not you
take your neighbor's property by way of vanity.Understanding the language meaningful usury
ziyadah (additional), in another sense linguistically, usury also means to grow and
develop. According to the technical terms, riba means making additional principal or a capital
asset is vanity (contrary to the principles Muamalat in Islam).Usury which is the problematic that
until now there is no uniformity of opinion in determining whether bank interest was equal to the
usury which is forbidden in Islam? In other words if the bank interest haram, halal or
mutasyabihat. As has been known that under Islamic law, the position and activities of the bank or
banking institution has not existed in the Prophet, therefore, the banking problems can be classified
in ijtihadiah problem, because it is a problem ijtihadiah then there differences of opinion in
determining the ruling by Religion Islam. Based on the scientific assessment by the Ulema Council
of North Sumatra with Yayasan Baitul Makmur North Sumatra in 1985, concluded that:
a.Perbankan financial institutions and non-bank is a sub system of the present economic system
that is difficult to be avoided;b.Riba nature adh'afan mudha'afah (double) is haraam, according to
which or higher texts from the Qur'an and Sunnah;c.Pendapat on bank interest, there are still
differences of opinion from the scholars, the opinions are as follows:1) prohibits the bank due to
take the same interest with usury, 2) Allowing bank interest due regard not the same as usury,
which is forbidden by Islamic Shari'a and3) Interest from banks is haram, but because there is no
way out to dissuade him, then allowed (because it is considered an emergency).
If based on the results of the Legal Affairs Committee of Muhammadiyah Sidoarjo,
which ruled that bank interest granted by the State-Owned Banks to clients or otherwise, including
the case "musytabihat" or mutasyabihat, then based on the results of the Legal Affairs Committee
Legal Affairs Committee of Muhammadiyah Muhammadiyah Yogyakarta in Congress in
1989interest in the problem bank still has the same conclusion, namely the interest the bank is
"musytabihat". In 2006 the Legal Affairs Committee of Muhammadiyah's central leadership has
mengkalsifikasikan that bank interest haram category that has been poured in the draft Decision of
the Legal Affairs Committee of Muhammadiyah's central leadership.Result of Islamic Banking
Workshop held Indonesian Ulema Council (MUI) in 1990 set the principle put forward non
interest Muslim thinkers into three categories: a. At first glance, categorize bank interest haram
because of the same with usury;b. The second view, bank interest is not the same as kosher
because of usury;c. The third view of inserting in category mutasyabihat (dubious, should be
avoided but can be practiced as an emergency and forced.
Finally, at the beginning of 2004 which forbids the MUI fatwa came out of bank
interest. Before describing the meaning of usury will present several sources of Islamic law
governing usury, among others:a.Ar-Rum (30): 39, which means: "And something usury
(additional) that you give for him to add to human wealth, then the usury was not increase with
Allah. And what you give a charity that you intend to achieve the pleasure of Allah, then (who do
so) that people who are double (reward);b.An Nisa (4): 160-161, which means: "It was by the
tyranny of the Jews, We forbade them that (eating-food) that's fine previously) lawful for them,
and since many hinder (men ) from the Path of Allah. And because they devour usury, when in fact
they have been banned from it, and because they eat the wealth of people by way of vanity. We
have prepared for the disbelievers among them a painful doom;c.Ali Imran (3): 130, which means:
"who believe, do not devour usury with doubled and fear Allah that ye may prosper ';
d.Al Baqarah (2): 275, which means: Allah has made the sale and forbidden usury;
e.Al Baqarah (2): 278-279, which means: "who believe! to God and leave the rest of usury (which
is not collected) if ye are believers. So if you do not do (leaving the rest of usury), then know that
Allah and His Messenger will memerangimu. And if you repent (from taking usury), then you
staple your treasure, you are not persecuted and did not (also) dianiyaya.If examined from the
contents of the verses in the Qur'an, can know that God set usury with "multiply" and this is
forbidden, the Qur'an. God does not forbid in others (Rashid Rida, tt: 114).
According to the etymology or meaning of language, usury means extra (az-
ziyadah). Rabbah idza wa'ala Zada, something that usury, if he increases and rising, while
according to the terminology (terms) usury under Islamic rules' is an addition to capital. In the
Islamic law of usury is defined as certain additional criteria. Another opinion states that usury is a
surplus carried out unilaterally by one of two people who transact. According to Ibn Qayyim,
usury is categorized into two parts, namely Riba and Riba Jaliy Khafiy.Usury is usury nasi'ah
Jaliy, forbidden because madlarat bring great. The perfect usury (riba al-kamil) is usury
nasi'ah. Riba is running at the time of ignorance. Khafiy usury usury forbidden to close the jaliy
(wal-li-silent haramun annahu dzari'atun ilaljaliy). Based on the above description it can be drawn
a conclusion about the bank that the bank interest rates are considered illegitimate because the
same as usury, are considered kosher because it is not the same as usury and there that allow for an
emergency, there is an urgent interest to do and no other services to facilitate it, by continuing to
base the existence of serious benefits. If categorized in Jahiliy Riba and Riba Khafiy, the interest
that banks including Riba silent one is allowed if there are serious benefits. On the basis of the
above considerations, it is fitting to preserve the lives of the possibility of eating or using the stolen
money if it is available should use the services of Islamic Banking Islamic Bank, as Bank
operations Sharia (Islamic Bank) interest-free. Islamic Banking system operational use and sharing
in Islamic Banking institutions have a Sharia Supervisory Board continued to control operational
Islamic Bank in accordance with Sharia principles.
History of Islamic Banking, Islamic Banking Development International
In describing the historical development of Islamic Banking below will be considered from
theoretical developments, institutional and positive law on Islamic Banking. However, given the
Islamic Banking is not a typical phenomenon in Indonesia and its development is not possible
without the influence of the outside world, it will be described in advance about the general
development of Islamic Banking outside Indonesiadan Internationally.Based on sources from Bank
Indonesia, the development of the International Islamic Banking began in 1890, namely the
existence of The Barclays Bank opened a branch in Cairo, Egypt and the first time have been
criticized on bank interest. In the year 1900 -1930 began to spread the understanding that the bank
interest is riba. In the year 1930 -1950, the first time provide an alternative Islamic Economic
Partnership activity in accordance with Sharia. Theoretical concepts of the Islamic Bank first
appeared in the 1940s, with the idea of Islamic Banking which is marked by many Muslim minds,
who wrote about the existence of the Islamic Bank, for example: Anwar Qureshi (1946), Naeim
Siddiqi (1948) and Mahmud Ahmad (1952). A more detailed description of the preliminary ideas
about Islamic Banking written by scholars of Pakistan, namely Abul A'la Al-Mawdudi (1961) and
Muhammad Hamidullah (1944-1962). In the development history, in the early 20th century was a
period of revival of the Islamic world "ketertidurannya" in the midst of world upheaval.This
condition leads to a new awareness to apply the principles and values of Sharia in real life. One of
its efforts is the application of Islamic financial institutions based on Islamic principles. Pioneering
the application of profit and loss sharing system, as an Islamic financial institution's core business,
has been carrying around since the 1940s, the effort to manage the funds in unconventional
diPakistan pilgrims and Malaysia.
Resumed in 1950, Islamic Economics began offering banking and finance theory model
system replacement rate based on the concept of two-tier mudaraba. Institutionally which is the
first Islamic bank was established Islamic Rural Banks in the region by Dr. MYT Ghamr. Ahmed
El-Najar that capital aided by King Faisal in 1963 until 1967 in Cairo, Egypt, although in the end
its operation was taken over by the National Bank of Egypt and the Central Bank of Egypt. MYT
Ghamr Bank being successfully combines German banking management with the principles of
Islam to translate muamalah in bank products suitable for rural areas is largely oriented towards
the agricultural industry. However, due to political issues, in 1971 in Egypt successfully re-
established Islamic bank under the name Social Nasser banks, only purpose is more social than
commercial. Collectively the idea of the establishment of Islamic Banking at international level
appear in the conference of Islamic countries of the world in Kuala Lumpur, Malaysia in April
1969, followed by 19 countries of participants. The conference resulted in several respects,
namely: 1. Every advantage should be subject to the laws of gains and losses, if not he including
usury and usury that is unlawful or less, 2. It is proposed to set up an Islamic bank is clean and the
system of usury in the shortest possible time and 3. While the establishment of Sharia bank waiting
time, the banks allowed to operate menerpapkan interest, but if it is really in an emergency.
In 1970, began popping out of banks and other Islamic financial institutions in several
Muslim countries and the activities of scientific and strategic institutions such as the Conference
on Islamic Economics. In December 1970, in Karachi, Pakistan, beginning with the foreign
ministers meeting state-nation Organization of Islamic Conference (OIC), when Egypt submitted a
proposal to establish International Islamic Bank.After going through certain stages and approval of
the OIC countries in 1975 stood Islamic Development Bank (IDB), which consists of 22 (twenty
two), the founder of an Islamic state. IDB has an important role in meeting the funding needs of
Islamic countries to development and actively provide interest-free loans based on equity
participation of that country. IDB is also instrumental in motivating many other countries to
establish Islamic financial institutions. At the end of the period of the 1970s and early 1980s,
Islamic financial institutions emerging in Egypt, Sudan, the Gulf states - the Gulf States: Arab
countries, Pakistan, Iran, Malaysia, and Turkey. The first Islamic Banking is the private nature of
Dubai Islamic Bank, established in 1975 by a group of Muslim businessmen from various
countries. According to Sutan Remy Sjahdeini, within 10 (ten) years since the establishment of
these banks has emerged more than 50 (fifty) interest-free bank. In 1977 established two with the
name of Faysal Islamic Bank Islamic Bank of Egypt and Sudan. In that year the government also
established the Kuwait Finance House Kuwait.
Internationally, the development of Islamic banking was first initiated by Egypt. At the
hearing the Minister for Foreign Affairs of the State-nation Organization of Islamic Conference
(OIC) in Karachi Pakisten December 1970, Egypt submitted a proposal in the form of studies on
the establishment of International Islamic Bank for Trade and development (International Islamic
Bank for Trade and Development) and the proposed establishment of the Federation of Islamic
Bank(Federation of Islamic Banks). The core proposals submitted in these proposals is that the
financial system based on the interest must be replaced with a system of profit-sharing scheme in
collaboration with gain or loss. The proposal was accepted, and the court approved the plan to
establish International Islamic Banks and Islamic Banks Federation. Even in addition also
proposed the establishment of specialized agencies called the Agency for Investment and
Development of Islamic Countries (Investment and Development Body of Islamic Countries), and
the establishment of special representatives of the Association of Islamic Banks (Association of
Islamic Banks) as an entityconsultative economic problems and Islamic banking. At the hearing
the Minister of Foreign Affairs of OKI in Benghazi, Libya in March 1973 bull, the proposal as
mentioned above re-scheduled. In July 1973, the committee of experts representing the Islamic
countries meeting in Jeddah of oil producers to discuss the establishment of Bank Islam. The
design of the bank's establishment, in the form of constitutions and bylaws discussed at the second
meeting, in May 1972. At the hearing the Minister of Finance of OIC in Jeddah in 1975 had
approved the design of founding the Islamic Development Bank (IDB) with an initial capital of 2
(two) billion dinars and composed of all OIC member countries.
In 1980, more and more developed banks, Islamic financial institutions and educational
institutions of Islamic economics and finance in other Muslim countries, like Egypt, Sudan, the
Gulf States, Pakistan, Iran, Malaysia, Bangladesh and Turkey.Broadly speaking institutions in
emerging Islamic banking can be categorized into two types, namely the Commercial Bank Islam
(Islamic Commercial Bank), as Faysal Islamic Bank (Egypt and Sudan), Kuwait Finance House,
Dubai Islamic Bank, Jordan Islamic Bank for Finance and Investmnt Bahrain Islamic Bank and
Islamic International holding companies, such as Dar Al-Maal Al-Islami (Geneva), Islamic
Investment Company of the Gulf, the Islamic Investment Bank (Manama) and the Islamic
Investment House (Amman). In 1990, public policy began to color the Islamic financial system
owned by several Muslim countries (from the founding of Accounting and Auiditing Organization
for Islamic Financial Institutions (AAOIFI) and Islamic finance and economics conferences
worldwide). Islamic Banking continued to grow because of its values-oriented sound business
ethics. And conducted a press conference in Singapore in August 1998 can be seen that Islamic
financial institutions experiencing rapid growth in the world. The number has reached 200 pieces,
including 160 in the form of a bank, and the rest were non bank.Perbankan Islamic financial
institution has been penetrated and accepted not only in Muslim countries but also non-Muslim
countries. Countries that most people are not Muslims have also developed Islamic
Banking. Development opportunity in the non-Muslim countries is quite large. When Islamic
Banking Conference held in Toronto, Canada, on May 25, 1995, Don Blankarn, former Chairman
of the Special Commite on Banks and Banking has argued: "There is a huge opportunity for
Islamic banking and finance inCanada."
The development of several Islamic Bank in the world from year to year between 1973
and 1999 can be displayed in the following table.Bank-Islamic Development Bank, other
development related to Islamic Banking from 2000-2005 that occurred around the issuance of
Bonds is private and government began to develop and grow rapidly. Infrastructure establishment
institutions such as the Islamic Financial Services Board (IFSB), International Islamic Financial
Market (IIFM), Islamic International Rating Agency (IIRA), (General), Council of Islamic Banks
and Financial Institutions (CIBAFI), and Arbitration and Reconciliation Centre for Islamic
Financial Institutions (ARCIFI) were the resource persons established. Based on information from
a variety of observations known to the present size of the IFSI (Islamic Financial Service
Institution): 1.Berdasarkan CIBAFI industry data includes 284 Islamic financial institutions (IFIs)
operating in 38 countries with a volume of USD 178.5 billion. This amount does not include
"conventional banks' Islamic window operations", which reached $ 200 billion estimate. Even this
data does not include non-banking financial institutions, Takaful and capital market activities,
2. Islamic Capital Market: a. from The Islamic Banker, London, estimated at more than 250
agencies "mutual funds" Sharia which manages about $ 300 billion in assets, b.The Liquidity
Management Centre (LMC), Bahrain compiling a list of 37 companies and sovereign
Sukuk. Sukuk is worth USD 7.96 billion and a total of USD 12-14 billion Sukuk international,
domestic Islamic debt certificates c.Malaysian approximately USD 17.1 billion and USD 2 billion
worth of Bahrain and the Islamic stock d.Kapitalisasi that match the criteria Dow Jones Islamic
Market Index (DJIMI ) amounted to USD 104 billion in 2004. with the assumption that the shariah
shares only 30% of the total stock capitalization of sharia in the world, the Islamic world's
estimated total stock of more than $ 300 billion.In 2005 there were 78 Takaful companies are
operating in the world, assuming that at the end of 2000 the total gross premiums of USD 530
million Takaful, average growth per year 1995-2000 is 63%, it is predicted that the present gross
premiums reached USD Takaful mengkover 5 billion to USD 20 billion in assets.
Non-bank financial institutions (non-banking financial institutions), particularly non-bank real
estate financing (non-bank non-bank real estate) financing and housing mortgages is growing,
which is estimated to reach approximately USD 9-12 miliar.Berdasarkan above data at the end in
2005 is estimated at more than 300 Islamic financial institutions in over 65 countries to manage
assets of around USD 700-1000 billion.Based on data from Bank Indonesia are the centers of the
development of international Islamic banking and finance, among others: a.Timur middle ïƒ
Bahrain, b.Afrika ïƒ Sudan, the Middle c.Asia ïƒ Iran, Pakistan, Southeast d.Asia ïƒ Malaysia,
Indonesia, e . ïƒ Europe England, f.Amerika ïƒ USA.Berikutnya will present several international
Islamic financial institutions as follows: a.Islamic Development Bank (IDB), b.Islamic Financial
Services Board (IFSB), c.International Islamic Financial Market (IIFM) , d.Accounting and
Auditing Organization for Islamic Financial Institutions (AAOIFI).
 Development of Islamic Banking in Indonesia, Stubs practice of Islamic Banking in
Indonesia began with the opinion of KH Mas Mansur, Chairman of the Executive Board of
Muhammadiyah period 1937 - 1944 which states that the reason for the use of services
Conventional Bank is a matter of necessity, because at that time Muslims do not have own bank
that is free of usury. In the mid-1970s there is an idea to establish an Islamic Bank which later
discourse on Indonesian National Seminar on Relations with the Middle East in 1974 and in 1976
in the International Seminar conducted by the Institute for Social Sciences (LSIK) and Unity in
Diversity Foundation. But there are several reasons that hinder the realization of the idea, among
others: Islamic Banking operation which applies the principle of profit sharing has not been set,
and therefore inconsistent with the Basic Law of Banking in effect at that time was of Act No. 14
of 1967 on Banking .The concept of the Islamic Bank is also considered in terms of political
ideological connotations, is a part of or in connection with the concept of Islamic State, and
therefore undesirable government. At that time still in question, who is willing to put that kind of
venture capital, while establishing new banks from Middle Eastern countries are still prevented
from, among others, by policy restrictions on foreign banks wanting to open a branch office in
Indonesia.
In the 1980s the desire to implement Islamic principles in the field of financial
institutions in this country began with the establishment of financial institutions with the status of
Baitul Tamwil Board of Cooperative Law. Baitut Tamwil are financial institutions with Shariah
principles with the status of legal entity savings and loan. First established in Bandung by the
name-Tamwil Baitut Services Expertise Teknosa on December 30, 1980 with amendment dated
December 21, 1982. Second, in Jakarta was established Ridho Gusti Cooperative Savings and
Loan, which was established on 25 September 1988. More specific initiatives on the establishment
of new Islamic Bank in Indonesia, conducted in 1990.On December 19 to 22 August
1990. Indonesian Ulema Council (MUI) held interest rates and banking workshop in Cisarua,
Bogor, West Java.The result of the workshop were then discussed in more depth in the Council
Nasinal IV MUI in Jakarta August 22 to 25, 1990, resulting in the mandate for the formation of
working groups establishment of Islamic Bank in Indonesia. The working group is called Team
Banking MUI to be given the task to approach and consultation with all stakeholders. As a result
of team work Perbanakan MUI is the establishment of PT Bank Muamalat Indonesia (BMI), an
appropriate deed of foundation, established on November 1, 1991. At that time the accumulated
stock purchase commitment of Rp.84 billion. On November 3, 1991, on the occasion: the president
at the presidential palace in Bogor, can be filled with a total commitments initial paid up capital of
Rp. 106,126,382.00. These funds come from the president and vice president, ten cabinet ministers
V construction, as well as Bhakti Muslim Pancasila Foundation charity, Yayasan Dakab,
Supersemar, Dharmais, Purna Bhakti Pertiwi, PT PAL and PINDAD. Further Development Fund
Foundation established as a foundation Da'wah Islamic Bank support. Armed with these initial
capital, on 1 May 1992, Bank Muamalat Indonesia (BMI) began operating.
In 1992, Indonesia entered the era of the dual banking system by allowing a bank to
operate with the principle of results based on Article 13 paragraph (c) of Act No. 7 of 1992 tntang
Banking stating that one of Rural Bank (RB) provides financing to customers based on the
principle of profit sharing in accordance with the provisions set forth in Article 6 of Government
Regulation No. 72 of 1992 concerning Bank Based on the principle of sharing (hereinafter written
PP. 72 Th. 1992) and enacted on October 30, 1992 in the Republic of Indonesia Number 119
Year 1992., Article 6 PP.72 Th. 1992, contains: (1) commercial banks or rural banks, whose
operations are solely based on the principle of sharing, not allowed to conduct business activities
that are not based on the principle of profit sharing,(2) commercial banks or rural banks, whose
operations are not based on the principle of sharing, not allowed to conduct business activities
based on pinsip for the results.Translation of the above provisions are described further in the
Circular Letter of Bank Indonesia Number 25/4/BPPP dated February 29, 1993 which states that:
a. Bank based on the principle of sharing is a Commercial Bank and Rural Bank made through the
efforts solely on the principle of profit sharing, b. Principles for the intended outcome is the
principle of profit sharing based on Sharia, cBank based on the principle of sharing is required to
have a Sharia Supervisory Board (SSB) and d. Commercial Bank or the Rural Bank, whose
operations are solely based on the principle of profit sharing is only allowed to conduct business
activities based on the principle of hasil.Sebaliknya, commercial banks or rural banks that do
business with profit-sharing principle (conventional), not allowed to do business based on the
principle of profit sharing.
Based on data from Bank Indonesia, the development of Islamic Banking in Indonesia,
other than those described above appear from some of the activities undertaken include:
1. Era of dual-system banks, by allowing Conventional Banks open business unit of Sharia (Law
No. 10 Th.1998); 2. Confirmation of the role of Bank Indonesia as an Islamic banking supervisory
authorities and to implement monetary policy based on Islamic principles (Act No.23
Th.1999);3. The implementation of the institutional provisions of the first Islamic bank in
accordance with operational characteristics of Islamic banks (Th. 1999);4. Operation of sharia
business unit of conventional commercial banks for the first time (Th. 1999);
5. An implementation of the first Islamic financial instruments to mark the start of activities at the
interbank financial markets and monetary policy based on the principles of Sharia (Th. 2000);
6. The creation of a special unit (the Bureau of Islamic Banking) at Bank Indonesia, which handles
the development of a comprehensive Islamic banking (Th. 2001);7. The formulation of Islamic
Banking Development Blueprint (Th. 2002 and 2005);8. Formulation of academic paper bill Sharia
Banking (Th. 2003);9. The implementation of prudential regulations are the first in keeping with
the operational characteristics of Islamic banks is the quality of productive assets (KAP) and
allowance for earning assets (PPAP) for the bank's Sharia (Th. 2003);10. bank interest illegitimate
Fatwa by the Indonesian Ulema Council (Th. 2003);11.Disusunnya provision requirements, duties
and authority of DPS (Th. 2004);12.Diberlakukannya capital special provisions for Islamic
banking which complies with international standards (IFSB) (Th. 2005);13.Penjajagan network
requirements more efficiently and be careful (Th. 2005);14.Inisiatif preparation of the "linkage
program" as a basis for optimizing the role of Islamic banks in the voluntary sector (Th. 2005);
The following will be presented about Sharia Banking Development Blueprint 2002 and
2005.Phasing Achievement National Sharia Banking Development Goals (Blueprint of Bank
Indonesia, particularly the phasing based on the 2005 version can be seen that it is currently
entering phase-2 ie to strengthen the industrial structure which will expire in 2009. The next stage
is the fulfillment of financial standards and quality of international service on the 3rd phase which
will begin in 2010-2012. In 2013-2015 stage towards integration with other Islamic financial
institutions. 2nd phase is a stage of strengthening the structure of the banking industry based on
Bank Indonesia Regulation Number 8/3/PBI/2006 on Amendment to a Commercial Bank Business
Activity Conventional Commercial Banks conducting Operations based on Sharia Principles by
Conventional Commercial Bank, can be seen inBank scheme as follows. Development of Islamic
Banking since it was first established in 1992 to March 2006 is shown as follows: Network-based
Islamic Banking seventh aspect above, the main differentiator between Conventional and Islamic
Banking Bank is the concept of halal. This is due to the transcendental nature of every transaction
in every activity muamalah and Islamic Law. Besides the differences are differences in operational
principles is the use of interest in the Bank's operational systems and the use of conventional
profit-sharing in Islamic banking operations.Differences of interest and profit-sharing system can
be seen in the following table. Differences between Conventional and Islamic Banking Bank
Operationalization between Conventional Banks and Bank Syariahmempunyai similarities and
differences. The equation can be seen from the technical aspects of the receipt of money, transfer
mechanism, which used computer technology and general financing requirements.The difference
can be seen from the 7 (seven) among other aspects: aspects of contract and legality aspects,
disputes settlement institutions, organizational structure, investment, organizational principles,
objectives and customer relations. A description of each will be explained by the table below.
Differences Conventional Banks and Islamic Banking, which is based on seven aspects of the
above, the most important differentiator between Conventional and Islamic Banking is the concept
of halal. This is due to the transcendental nature of every transaction in every activity muamalah
and Islamic Law. Besides the differences are differences in operational principles is the use of
interest in the Bank's operational systems and the use of conventional profit-sharing in Islamic
banking operations.Differences of interest and profit-sharing system.
Where on the stage of fund collection and disbursement stages. At that stage
pengimpunan funds, law relationship between Shahibul Maal who entrust their funds to the Islamic
Bank and the Bank as mudarib who will take over management of the fund. At that stage the
distribution of funds legal relationship between the Islamic Bank as Shahibul Maal and customers
as mudarib which will utilize the funds from Bank where there are two legal relationships
occurred, ie at the stage of fund raising, legal relationship is between the depositor (customer
creditors) and bank. At that stage the distribution of funds legal relationship that happens is the
bank and customer debitur.Berdasarkan picture above there are similarities engagement used in the
legal relationship between the Bank and their Clients are starting with an agreement or
contract. There are similarities and differences between treaties and covenants. The equation is
such that in the agreement or contract based on an agreement (consensus) of the parties.The
difference between Interest and Benefit Sharing, Islam forbids interest and justifies the
results. Both provide benefits, but have fundamental differences as a result of the difference
between investment and disposal of money. In investment, the work done has risks, and therefore
contain elements of uncertainty. In contrast, disposal is money that does not have the risks of the
activity, due to a certain percentage rate determined by the amount of capital. In accordance with
the above definition, save money at Bank Islam, including categories of investment.The size of the
acquisition of the return was dependent on the results of operations that actually happened and by
the banks as fund manager.Thus, the Islamic Bank can not just distribute the money. Islamic banks
must keep on trying to improve the return on investment so that more interesting and more to give
confidence to the owner of the funds.
The difference between interest and profit sharing can be explained in the following
table: is on how to calculate the Profit Sharing Bank with the principle of profit sharing in both the
paid up capital to collect their funds, public funds and loans from other banks or other parties
should not deviate from the principles of Islamic sharia, with In other words in managing these
funds must comply with the provisions of sharia. In the operation of bank capital with public funds
or loans of other parties going cooperation in funding for the distribution of financing between
banks and lenders so that the contracts had been signed musharaka. All benefits arising from
utilization of such funds distributed to the owners of the funds with the agreed rules.Sharing
method there are three categories of revenue sharing, profit sharing and profit-loss sharing.
The following will explain the differences of each., 1.Revenue Sharing, which is distributed gross
income, 2.Profit Sharing, which distributed the profits of profit / loss, but if there are still borne
losses in banks and 3.Profit and Loss Sharing, which distributed is a profits (if the company / bank
profits) and if mudharib losses, maal Shahibul bear the loss.In determining the results of the
determinant for the outcome variables were:a.Pendapatan / bank profits, b.Nisbah sharing between
customers and banks,c.Rata nominal average customer funds and Society funds d.Rata average
bank.
The following will be presented examples of calculations for the results on the principle
wadi'ah mudharabah: Besides those mentioned above, I calculate the ratio between the yield and
flower can be seen in the table below. The example below illustrates that between customers'
Islamic Banking and Conventional banks are equally invested funds amounted to 10,000,000.00,
for a period of 1 month. Based on the calculations below are additional differences obtained by the
client with a difference of Rp. 11,137.00 (eleven thousand one hundred thirty dollars). (Data
source: Copyright © 2008-2009 Faculty of Economics in St. Louis Directorate General of Higher
Education Department of Education All Rights Reserved. Powered By IT-Line.Net)

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