The Existence of Islamic Banking in Indonesia

The development of Islamic economic, especially in finance and banking has shown improvement both in the world and in Indonesia. At the world level, there are many countries that have Islamic finance and banking industries. In fact, around 75 countries have practiced Islamic economic and financial systems. In its implementation, the development of Islamic Economic system was marked by the establishment of Islamic financial institutions such as Islamic Banking, Baitul Mal Wat-Tamwil, Sharia Capital Markets, Sharia Mutual Funds, Sharia Pawnshops, Sharia Insurance and other institutions that use Sharia principles. With the development of financial institutions that are based on sharia principles, it can provide a wider alternative for the public to use financial institutions that are not based on the interest system or riba (conventional financial institutions).