Transformation of Banking Law in Indonesia

Gabrielia Febrianty Shofiana, Abd. Shomad, Rahadi Wasi Bintoro


Globalization development through the market economy system has created injustice for humankind,
encouraging Muslims to implement the Sharia in their economic activities. The rapid growth of sharia
economy in Indonesia, ultimately affects the financial industry, including the banking that implicates
regulation and organizational structure causing two banking systems, namely conventional banking and
sharia banking. Based on the description, this paper discusses the national banking law that applies two rules
of law in Indonesia. To address these legal issues, conceptual approach, statutory approach and historical
approach are used. Based on the analysis, since the enactment of Law Number 21 Year 2008 on Sharia Banking,
the existence of sharia banking is getting stronger. Therefore, in Indonesia there is a dual bank system in one
rule, namely banking law. Both banks are responsible to bank Indonesia as national central bank.
Conventional banks may conduct business activities based on sharia principles, but not so for sharia banks.

Keyword: conventional bank, sharia bank, sharia principles

Full Text:

PDF View


Abdullah, A., (2017). A comparison between Malaysia and Indonesia in Islamic banking industry. Research Journal of Business and Management (RJBM), V.4, Iss.3, p.276-286;

Alexander, A.J., (2011) Shifting Title And Risk: Islamic Project Finance With Western Partners, Michigan Journal of International Law, Vol. 32, No. 3, p. 571-612;

Anshori, A.G. (2008) Aspek Hukum Reksa Dana Syariah di Indonesia, Bandung: Refika Aditama;

Archer, S., and R.A.A. Karim, (2006), On Capital Structure, Risk Sharing and Capital Adequacy in Islamic Banks, International Journal of Theoritical and Applied Finance, Vol.9, No.3 (2006) 269-280;

Anwar, A.N., (2016) Analysis of Indonesian Islamic and Conventional Banking Before and After 2008, International Journal of Economics and Finance, Vol. 8, No. 11, 2016, pp. 193-199;

Arshad , M.U, Yusoff, ME and Tahir, MS, (2016) Issues in Transformation from Conventional Banking to Islamic Banking, International Journal of Economics and Financial, Issues 2016, 6(S3) 220-224, retrieved January 2019;

Bank Indonesia, (without year), Sharia Banking, retrieved on 12 January 2019, from;

Bank Indonesia, (2008), Codification of Islamic Banking Products, Directorate of Islamic Banking;

Bank Indonesia, (2008), Grand Strategy of Islamic Banking Market Development, Directorate of Islamic Banking;

Benhayoun, N.,, (2014) Islamic Banking Challenges Lie In The Growth Of Islamic Economy Despite Of The Free Interest Loans Policy: Evidences From Support Vector Machine Approach, ACRN Journal of Finance and Risk Perspectives Vol. 3, Issue 1, Jan. 2014, pp. 19 – 31;

Bintoro, R.W., Shomad, A., Masruhan, (2017), Islamic Personalization as the Basis of Right Claim Submission in Religious Court, Jurnal Dinamika Hukum, Vol.17 No.2, pp.188-194;

Bouheni, F.B. and Ammi, C (2015), Banking Governance: What’s Special About Islamic Banks?, The Journal of Applied Business Research, July/August 2015 Volume 31 Number 4, pp.1621-1630;

Choo, H.. (1995) Bank Lending Assessment And Management. Institut Bank-Bank Islam;

DSN MUI, (without year), Sekilas DSN MUI, retrieved 5 January 2016 from;

Farooq, M.O., (2007), Partnership, Equity-Financing and Islamic Finance: Whither Profit-Loss Sharing? Review of Islamic Economics, Vol. , Special Issue, 2007, pp. 67-88;

Farooq, M.O. (2009), The Riba-Interest Equation and Islam: Reexamination of the Traditional Arguments, Global Journal of Finance and Economics, Vol. 6, No. 2, pp. 99-111;

Hanif, M., Differences and Similarities in Islamic and Conventional Banking (April 26, 2014). International Journal of Business and Social Sciences, Vol. 2, No. 2. Retrieved 10 January 2019 at SSRN:

Jalbani, A.A. and Shaikh, S.A., Risk Management in Islamic and Conventional Banks: A Differential Analysis (July 2009). Journal of Independent Studies and Research, Vol. 7, No. 2, pp. 67-70;

Jobst, A, (2007), The Economics of Islamic Finance and Securitization, Journal of Structured Finance, Vol. 13, No. 1., pp6-27;

Keenan, R. (2010) Islamic Project Finance: Structures and Challenges, Project Finance Newswire, Chadbourne & Parke LLP;

Kurniawan, A., Shomad, Abd. (2017) Composite Islamic Contracts in Modern Complex Islamic Bank Finance, The Islamic Quarterly, Vol.6, No.1. pp.99-133;

Kurniawan, A., Shomad, Abd., (2019) Reflections on Century Bank: A Failed Bank in Indonesia, International Corporate Rescue, Vol.16, Issue 12, pp.110-114;

Mansyur, H.M. Ali, (2011) Aspek Hukum Perbankan Syariah Dan Implementasinya Di Indonesia, Jurnal Dinamika Hukum Vol. 11 Edisi Khusus Februari 2011, pp.67-75;

Mikail, S.A., Arifin,A., (2013), A Critical Study On Shari‘Ah Compliant And Shari‘Ah Based Products In Islamic Banking Institutions, Journal of Islamic and Human Advanced Research, Vol. 3, Issue 4, pp. 168-189;

Nugroho, L., Utami, W., Sukmadilaga, C., Fitrijanti, T., The Urgency of Allignment Islamic Bank to Increasing the Outreach (Indonesia Evidence), International Journal of Economics and Financial Issues, 2017, 7(4), pp. 283-291;

Rizal, M. (2011) Kewenangan Pengadilan Agama Dalam Menyelesaikan Sengketa Syariah, Jurnal Ilmiah Abdi Ilmu , pp.560-572;

Phull, C., (2011) The Concept of Riba in Islamic Banking Law: An Introduction (October 4, 2011). Journal of International Banking Law & Regulation, Vol. 26, Issue 10, pp. 405-411. Retrieved 10 January 2019 at SSRN:;

Rahmi, D. (2013), Ruang Lingkup Kewenangan Peradilan Agama Dalam Mengadili Sengketa Ekonomi Syariah , 13, Syariah-Jurnal Ilmu Hukum. Retrieved January 2019 from;

Rodliyah, N., Ramasari, R.D. (2018), Implementation of Syari’ah Economic Principles on The Management of Syari’ah Mutual Fund in Indonesia, Yuridika, Volume 33 No. 2, Mei 2018, pp 316-329, Retrieved 10 January 2019;

Shomad, Abd., Usanti, T.P. and Thalib, P. (2017) Financing Risks Of Micro, Small, And Medium Enterprises (Umkm) With Cooperation Patterns Between Islamic Bank And Baitul Maal Wa Tamwil (Bmt), Jurnal Dinamika Hukum Vol. 17 No. 1, pp. 53-60;

Sorenson, B., (2008) Ethical Money: Financial Growth In The Muslim World, American University International Law Review, Vol. 23, No. 4, pp.647-659;

Souaiaia, A.E., (2014) Theories and Practices of Islamic Finance and Exchange Laws: Poverty of Interest, International Journal of Business and Social Science, Vol. 5, No. 12, pp.34-52;

Suhartono, (2009), Peran Bank Sentral Dalam Stabilitas Sistem Keuangan (SSSK) Dan Implementasi Jaring Pengaman Sektor Keuangan (Jpsk)’ Jurnal Keuangan Dan Perbankan, 13, pp. 518 – 533;

Tabari, N.M., Islamic Finance and Modern World: The Legal Principles Governing Islamic Finance in International Trade, The Company Lawyer, Vol. 31, No. 8, pp. 249-254;

Tahir, P. Development and Legal Basis of Sharia Banks in Indonesia, International Journal of Scientific and Research Publications, Volume 7, Issue 8, August 2017, pp.100-107. Retrieved 10 January 2019;

Usanti, T.P., (2012) Pengelolaan Risiko Pembiayaan di Bank Syariah, 3, ADIL: Jurnal Hukum, Vol.3. No.2, pp.408-428;

Usanti, T.P. and Shomad, Abd. (2015), Hukum Perbankan, Surabaya: Lutfansah Mediatama;

Waemustafa, W, Sukri, S,. (2016) Systematic and Unsystematic Risk Determinants of Liquidity Risk Between Islamic and Conventional Banks, International Journal of Economics and Financial Issues, 6(4), pp.1321-1327;

Werner, R. A. (2014). Enhanced debt management: Solving the eurozone crisis by linking debt management with fiscal and monetary policy. Journal of International Money and Finance, 49, 443–469, retrieved 10 January 2019 at S0261560614001132;

Zamroni, (2013), Peran Bank Syariah Dalam Penyaluran Dana Bagi Usaha Mikro Kecil Dan Menengah (Umkm), Iqtishadia, Vol.6, No.2, pp.226-240.



  • There are currently no refbacks.

Crossref logo

Jurnal Dinamika Hukum
Faculty of Law, Universitas Jenderal SoedirmanCopyright of Jurnal Dinamika Hukum
Yustisia IV Building, Law Journal CenterISSN 2407-6562 (Online) ISSN 1410-0797 (Print)
Purwokerto, Central Java, Indonesia, 53122JDH is licensed under a Creative Commons Attribution 4.0 International License