Heart Half Implementation Sharia Banking In Indonesia

Abstract

Islamic banking in Indonesia has been regulated in the law, namely Law number 10 of 1998 concerning amendments to Law number 7 of 1992 concerning banking. As time goes by, the existing Islamic banking practices are starting to be questioned, questioned, and criticized, because there are those considered deviant even out of the sharia corridor itself. Against various problems that exist in Islamic banking, it needs to be addressed appropriately. By understanding the nature of the principle of tadrij fii tasyri, we are required to better understand and focus on the processes and stages in the implementation of syariah banking. So that with all the problems of Islamic banking faced now, it must be understood that this is still the stages, not the end and purpose of the application of Islamic banking it self. However, the main problem in the implementation of Islamic banking is the commitment. Islamic banking is in a comfortable zone with its current format. Efforts to implement Islamic banking are still half-hearted, even less serious. Even though there is a lot of criticism embedded in Islamic banking, starting from the practice of improper contracting, Human Resources (HR) who are not competent with the sharia itself, and banking products that are less adaptive and responsive.

Islamic Banking Prospects, Challenges and Criticism: A Systematic Literature Review

“…Certain challenges were identified in the (Narayan & Phan, 2019) must try and bring out products that are more Shariah-compliant and have the consensus of all religious scholars. Another criticism of Islamic banking is that it is considered as just equivalent to conventional banks and people think of it as just name change and regard it as being un-Islamic (Majeed & Zainab, 2018;Saputro et al, 2018;Shabbir & Rahman, 2019). The Islamic banks must launch an awareness campaign among the masses to correct this misconception and make people aware of what steps Islamic Banks are taking to practically implement Islamic banking in society.…”

“…Islamic banks must cater to the less privileged sector by introducing CSR, and providing loans to the less privileged section of society. Many of the scholars do not have a consensus on the shariah compliance of Islamic banking products (Ahmad & Imran, 2021;Butt et al, 2011;Saputro et al, 2018). Islamic banks…”

Development of Sharia Banking and Its Contributions for the Development of National Banking

“…Source: tracking results, processed While, assets-based provinces in Indonesia can be seen in the following table : Table -2 Source: tracking results, processed However, on the other hand, people's expectations (Lone & Ahmad, 2017) of the vital role of Islamic banking (Yuniarti, 2017) in order to participate in helping the growth as well as the development of the level of welfare of the Indonesian people (Saputro et al, 2018). Until now, it assessed by many Islamic banking experts or Islamic economics themselves are still far from expectations, even blunt, given the banking behavior that it runs not much different from conventional banking (Elsa et al, 2018(Elsa et al, , pp.…”

The Effect of Return on Asset (ROA), Operational Efficiency Ratio (BOPO), Inflation, Credit Interest Rate and Gross Domestic Product (GDP) towards Murabahah Financing in Sharia Banking in Indonesia (2016-2019)

“…Sharia banking in Indonesia has experienced a very significant development along with the development of society's thought regarding the interest-free Sharia banking system. It seems that sharia banking is a combination of commercial banks, investment banks, and investment-management institutions [1]. Sharia banking is oriented towards capital investment; with this pattern, sharia financial institutions will be stronger against the threat of crisis compared to conventional banking, and far from borrowing short and leading long behavior [2].…”