As is known, Indonesia is one of the largest Muslim country in the world. Of course this is very influential on the development annuity Indonesia. It often happens pros and cons in terms of application of the annuity system of Indonesia due to differences in perception among users of annuities in Indonesia.
One effort to overcome this, the Government Republic of Indonesia issued Law No. 10 of 1998 which is an amendment above Act No.7 of 1992, then in Indonesia are two of the banking system (Dual banking system) is a system of conventional banking and Islamic banking system. System Islamic Banking operations are different from other commercial banks (conventional).
Majority of conventional banks condensed scent in the pursuit of material benefits alone (capitalistic) with a system of interest, so do not know of any other party loss, while Bank Sharia emphasizes the nature of ta'awun (mutual help in the joys and sorrows / partnership), so there for the profit sharing principle known as the "profit and loss sharing" or "Mudlarabah" and also there are good loans (social) for customers who are very weak with the scheme (the form of financing) "qordlul hasan" ie loans where the customer is not burdened anything except just return anyway Specialized in banking, after the birth of the Law No.10 of 1998 which explicitly recognizes Islamic banking system in addition to conventional banking, then the existence of the Bank Muamalat Indonesia and other Sharia Commercial banks and financial institutions generally, the Shari'a sturdy and strong because there is a definite legal footing.
The existence of a definite legal basis is then up to the year 2011 have been born decades Commercial Bank is a Sharia Unit Sharia (windows) of the Bank of Conventional, As for the objectives established sharia banking are:
Directing economic activity in the Islamic Ummah to muamalah, particularly in the field banks to avoid the practice of usury; to create a justice in the economy by way of smoothing income through investment activities, so there is no noticeable gap between capital owners and capital management; to improve the quality of life by encouraging people to berwira business; to help overcome the problem of poverty is the main program of State develop;
To maintain stable economic / monetary government, namely to avoid / curb inflation and interest rates due to the application of unfair competition from financial institutions Conventional and entrepreneurs in general.
To save the Muslims from the dependence of conventional banks so that the Muslims can develop its economy in Islamic; Further characteristics / traits that distinguish Islamic bank with conventional banks among others:
Costs to be mutually agreed at the time the contract is manifested in the form of nominal and its flexible and reasonable;
A percentage of the payment be avoided because it is attached to the rest of the debt although the time limit has expired agreement; Islamic banks do not implement the financing contract based on a definite advantage (fixed return) are determined upfront, but rather to profit sharing in both profits and in losses.
Islamic banks will not make money by selling the same type of currency, with In other words money is seen not as an item so that the transaction always komudite use the term financing / credit not credit the money stuff.
In Islamic banking there Sharia Supervisory Board to oversee the operationalization bank of syari'ah aspect.