History of Islamic Bank in Indonesia: Issues Behind Its Establishment

Mutiara Dwi Sari; Zakaria Bahari; Zahri Hamat

doi:doi:10.11648/j.ijfbr.20160205.13

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History of Islamic Bank in Indonesia: Issues Behind Its Establishment

Mutiara Dwi Sari, Zakaria Bahari, Zahri Hamat

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.

DOI	10.11648/j.ijfbr.20160205.13
Published in	International Journal of Finance and Banking Research (Volume 2, Issue 5, October 2016)
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), 2024. Published by Science Publishing Group

Keywords

Indonesia, Islamic Bank, Bank History, Bank Establishment

References

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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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TY  - JOUR
T1  - History of Islamic Bank in Indonesia: Issues Behind Its Establishment
AU  - Mutiara Dwi Sari
AU  - Zakaria Bahari
AU  - Zahri Hamat
Y1  - 2016/09/06
PY  - 2016
N1  - https://doi.org/10.11648/j.ijfbr.20160205.13
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
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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
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Author Information

Mutiara Dwi Sari

Faculty of Social Sciences, University College Bestari, Terengganu, Malaysia
Zakaria Bahari

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

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

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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

Copy | Download

@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}
}

Copy | Download

TY  - JOUR
T1  - History of Islamic Bank in Indonesia: Issues Behind Its Establishment
AU  - Mutiara Dwi Sari
AU  - Zakaria Bahari
AU  - Zahri Hamat
Y1  - 2016/09/06
PY  - 2016
N1  - https://doi.org/10.11648/j.ijfbr.20160205.13
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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