American International Journal of Social Science

ISSN 2325-4149(Print), ISSN 2325-4165(Online) DIO: 10.30845/aijss

Political Economy of Islamic Banking in Indonesia
Ahmad Dahlan

There is a unique with Indonesia, as a Muslim majority country, but first Islamic bank in Indonesia established in 1992. Whereas politically, Indonesia is a member of OIC (Organization of Islamic Conference), an institution directly involved in the establishment of Islamic Development Bank (IDB). The establishment of Islamic bank in Indonesia in 1992 was a process of intersection and influence of political infrastructure (ICMI, MUI, LSAF, etc.) to the political superstructure of policies that contained Islamic symbolism in banking. Whereas in the period before 1992, politic (the state) still contradicted o the Islam symbolization. From this historical background, then this research began as part of the political economy that study the Islamic banking in Indonesia. This research is a library research, with content analysis method, and historical approach. The results show that in the national aspect, the movement of political infrastructure in the field of Islamic economy (such as banking) is more effective in the Islamicdevelopment of the political superstructure policies. Even the effect of policies Islamization in the Islamic banking field extends to other fields such as politics, law, academic, and social. While in the regional-global aspect, the presence of Islamic bank in Indonesia has removed the anomaly of Indonesia as a Muslim majority country (sociologist), member of OIC and founder of IDB (political) but does not have Islamic bank. But since 1992, Indonesia has been affirmative towards the development of Islamic financial institutions (economical).

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