Development of Indonesian Sharia Banks with Malaysia Comparation Method (Study of History, Products and Legal Assets)

Abstract

Sharia banking is developed in response to economic and cultural groupsthat are used to accommodate those who want the services to be carried out withIslamic sharia principles and morals. The development of Sharia banks in Indonesiaand Malaysia needs to be studied more deeply because Malaysia first establishedSharia banks in 1983 through Bank Islam Malaysia Berhad (BIMB) while the firstsharia bank in Indonesia, which named Bank Muamalat, was burned in 1991, whichdetermines the direction of the progress of sharia banks in Indonesia with the provisionsof Law Number 10 of 1998 concerning Banking. Determine the amount ofassets from banks that have a ratio of 1: 10 with Malaysia considering the assets ofsharia banks in Indonesia amounted to US $ 35.62 billion while Malaysia reachedUS $ 423.2 billion. This study focuses on the factors and effects of legal productsfrom the two countries in order to get more comprehensive study and know the relationbetween the legal products with sharia banking development in Indonesia andMalaysia