Muhammadiyah Organizations' Role for the Inclusion of Sharia Banking in Indonesia

Abstract

Sharia banking in Indonesia experienced growth very well. The Muhammadiyah organization is one of the influential organizations contributing and played a role in developing Sharia banking in Indonesia. The study's purpose was to determine Sharia banking development in Indonesia and Muhammadiyah organizations' role for the inclusion of Sharia banking. This research uses a literature study using a qualitative approach. The data used is sourced from secondary data. The analysis technique used is descriptive qualitative. This study indicates that growth occurred in Sharia banking from May 2018 to May 2019; the most considerable growth in financing grew by 13 percent. Sharia banking assets grew by 11 percent, and third party funding grew by 10.57 percent. The Muhammadiyah's organization's role in developing Sharia banking inclusion included the issuance of a fatwa from the Muhammadiyah's Tarjih Council in 2006 concerning the prohibition of banking interest in conventional banking. The Muhammadiyah organization cooperates directly with several sharia banking parties related to depositing funds and financial services.