LEGALITY ASPECTS OF SHARIA BANKING IN INDONESIA

Abstract

Islamic banking in Indonesia has existed for a long time, namely within the 1980s whilst several Islamic activists performed research on Islamic economics who recommended Islamic banking, even working towards it on a limited scale, together with through Bait at-Tamwil Salman, Bandung. Extra intensive efforts had been made in the 1990s, which culminated in the IV countrywide Deliberation of the Indonesian Ulema Council (MUI) in Jakarta, 22-25 August 1990 which led to a mandate to form a working group for the status quo of Islamic Banking in Indonesia known as the MUI Banking group. The end result of this team’s work is what is normally referred to as the establishment of PT bank Muamalat Indonesia (BMI), November 1, 1999, with an initial capital of more than IDR 106 billion. Several years later, Islamic banks emerged which includes independent Islamic banks, BNI Syariah, Mega Syariah banks and so forth. The sharia banking regulation itself is urgently wished for numerous motives, namely: in step with Indonesia's national development dreams to attain the advent of a just and prosperous society primarily based on economic democracy, it's far necessary to broaden an economic gadget primarily based on justice, togetherness, fairness and advantage. Islamic banking is the handiest instinct that is most appropriate to translate the above country wide development goals into real existence.Keywords: Legality, Sharia Banking, Islamic economics