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History of Islamic Bank in Indonesia: Issues Behind Its Establishment

Received: 9 July 2016     Accepted: 10 August 2016     Published: 6 September 2016
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Abstract

This paper aimed at making a critical review of the history behind the establishment and development of Islamic bank in Indonesia. This review revealed that the establishment of Islamic bank in Indonesia emanated from the undertowed and it’s divided into three phases. These phases are the phase of idea or thinking, the phase of rethinking, and the phase of establishmented and maturation. The main issues and problems that inhibited the establishment of Indonesian Islamic banks were political issues, lack of government support, legal issues, social problems, economic problems (lack of capital) and the debate among scholars about the legal prohibition of halal-interest conventional banks. These issues and problems delayed the establishment of Islamic bank in Indonesia.

Published in International Journal of Finance and Banking Research (Volume 2, Issue 5)
DOI 10.11648/j.ijfbr.20160205.13
Page(s) 178-184
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Indonesia, Islamic Bank, Bank History, Bank Establishment

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Cite This Article
  • APA Style

    Mutiara Dwi Sari, Zakaria Bahari, Zahri Hamat. (2016). History of Islamic Bank in Indonesia: Issues Behind Its Establishment. International Journal of Finance and Banking Research, 2(5), 178-184. https://doi.org/10.11648/j.ijfbr.20160205.13

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    ACS Style

    Mutiara Dwi Sari; Zakaria Bahari; Zahri Hamat. History of Islamic Bank in Indonesia: Issues Behind Its Establishment. Int. J. Finance Bank. Res. 2016, 2(5), 178-184. doi: 10.11648/j.ijfbr.20160205.13

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    AMA Style

    Mutiara Dwi Sari, Zakaria Bahari, Zahri Hamat. History of Islamic Bank in Indonesia: Issues Behind Its Establishment. Int J Finance Bank Res. 2016;2(5):178-184. doi: 10.11648/j.ijfbr.20160205.13

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  • @article{10.11648/j.ijfbr.20160205.13,
      author = {Mutiara Dwi Sari and Zakaria Bahari and Zahri Hamat},
      title = {History of Islamic Bank in Indonesia: Issues Behind Its Establishment},
      journal = {International Journal of Finance and Banking Research},
      volume = {2},
      number = {5},
      pages = {178-184},
      doi = {10.11648/j.ijfbr.20160205.13},
      url = {https://doi.org/10.11648/j.ijfbr.20160205.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20160205.13},
      abstract = {This paper aimed at making a critical review of the history behind the establishment and development of Islamic bank in Indonesia. This review revealed that the establishment of Islamic bank in Indonesia emanated from the undertowed and it’s divided into three phases. These phases are the phase of idea or thinking, the phase of rethinking, and the phase of establishmented and maturation. The main issues and problems that inhibited the establishment of Indonesian Islamic banks were political issues, lack of government support, legal issues, social problems, economic problems (lack of capital) and the debate among scholars about the legal prohibition of halal-interest conventional banks. These issues and problems delayed the establishment of Islamic bank in Indonesia.},
     year = {2016}
    }
    

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    T1  - History of Islamic Bank in Indonesia: Issues Behind Its Establishment
    AU  - Mutiara Dwi Sari
    AU  - Zakaria Bahari
    AU  - Zahri Hamat
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    DO  - 10.11648/j.ijfbr.20160205.13
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
    SP  - 178
    EP  - 184
    PB  - Science Publishing Group
    SN  - 2472-2278
    UR  - https://doi.org/10.11648/j.ijfbr.20160205.13
    AB  - This paper aimed at making a critical review of the history behind the establishment and development of Islamic bank in Indonesia. This review revealed that the establishment of Islamic bank in Indonesia emanated from the undertowed and it’s divided into three phases. These phases are the phase of idea or thinking, the phase of rethinking, and the phase of establishmented and maturation. The main issues and problems that inhibited the establishment of Indonesian Islamic banks were political issues, lack of government support, legal issues, social problems, economic problems (lack of capital) and the debate among scholars about the legal prohibition of halal-interest conventional banks. These issues and problems delayed the establishment of Islamic bank in Indonesia.
    VL  - 2
    IS  - 5
    ER  - 

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Author Information
  • Faculty of Social Sciences, University College Bestari, Terengganu, Malaysia

  • Centre for Islamic Development Management Studies (ISDEV), Universiti Sains Malaysia, Penang, Malaysia

  • School of Social Sciences, Universiti Sains Malaysia, Penang, Malaysia

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