Legality of Sharia Banking in Indonesia

Abstract

Sharia Banking is everything that concerns Sharia Banks and sharia business units, including institutions, business activities and ways and processes in carrying out their business activities.  This research aims to analyze the legality of Sharia Banking in Indonesia and the characteristics inherent in Islamic banking in Indonesia.  The approach method used is normative juridical. The results shows that legality of Sharia Banking in Indonesia after the entry into force of the enactment of statutory law, Islamic law, and contracts made by parties between customers and Sharia Banks. The laws and regulations include, civil law, Law No.2 1 of 2008 concerning Islamic Banking and its implementing regulations, the provisions of Islamic law namely the Koran and al-Hadist and the contracts held by Sharia Banks and Customers made in writing. The characteristics inherent in Islamic Banking include: the cost of the agreement is agreed upon at the beginning of the contract, in the project financing contract, Islamic banks do not apply profit calculations. The surrender of public finds in the form of deposits is considered as a deposit (al wadiah).