SEBISEBI

Jurnal Akuntansi dan Keuangan IslamJurnal Akuntansi dan Keuangan Islam

This study aims to analyse the development of Islamic banking in Indonesia through a literature review approach. The study was conducted by examining scientific journals, books, official regulations, and reports from relevant authorities, which were then categorised thematically to provide a comprehensive overview. The results of the study show that Islamic banking has made significant progress since the establishment of Bank Muamalat Indonesia in 1992 to the formation of Bank Syariah Indonesia in 2021. This development is supported by regulations, including Law Number 21 of 2008, as well as authority policies that strengthen institutional structures. However, the market share of Islamic banking is still limited, public literacy is low, and the availability of competent human resources is inadequate. Nevertheless, growth opportunities exist through government support, digital transformation, and sustainable finance trends aligned with Islamic principles. This study has limitations because it relies solely on a literature review, so the findings are conceptual. Therefore, further studies are recommended to use empirical methods to assess the effectiveness of policies and digitalisation strategies, and to compare the performance of Islamic banking with that of conventional banking.

In conclusion, Islamic banking in Indonesia has experienced significant growth, marked by an increase in total assets and a strengthening legal framework.Despite positive developments, challenges remain, including low Islamic financial literacy and limited market penetration.To capitalize on opportunities such as government support and digital transformation, Islamic banking must focus on product innovation, human resource development, and strategic collaborations.

Further research should investigate the impact of Islamic financial literacy programs on increasing public trust and adoption of Islamic banking products. Additionally, a comparative study assessing the performance of Islamic and conventional banks in Indonesia, utilizing empirical data, is needed to identify areas for improvement. Finally, exploring the potential of blockchain technology and other fintech innovations to enhance the efficiency and accessibility of Islamic banking services, particularly for MSMEs, presents a promising avenue for future research. These studies should consider the unique socio-economic context of Indonesia and aim to provide actionable insights for policymakers and industry stakeholders, ultimately contributing to the sustainable growth and inclusivity of the Islamic financial sector. The research should also focus on the role of waqf and zakat institutions in supporting Islamic banking initiatives and promoting financial inclusion among underserved communities. This will require a comprehensive analysis of the regulatory framework, operational challenges, and potential synergies between these different segments of the Islamic finance ecosystem.

  1. The Evolution of Islamic Banking in Indonesia: Challenges, Opportunities, and Future Prospects | Rahmah... journal.sebi.ac.id/index.php/jaki/article/view/888The Evolution of Islamic Banking in Indonesia Challenges Opportunities and Future Prospects Rahmah journal sebi ac index php jaki article view 888
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