Analysis of the Presence of the First Islamic Financial Institution and the Contribution of Muslim Scholars in Indonesia

Abstract

In Indonesia, Islamic economic institutions started from establishing Islamic banking in 1991. This study aims to examine and describe the presence of the first Islamic financial institutions and specifically the contribution of the parties involved. This study analyzes descriptions from related literature sources. The findings of this study indicate that there are three prominent Muslim economists who have contributed greatly, namely Adiwarman A Karim, Syafi'i Antonio, and Karnaen A. Perwataatmadja. At the beginning of its establishment, Bank Muamalat Indonesia with the sharia concept was faced with the behavior of customers who previously used the services of conventional banks that applied the interest system. Karnaen A. Perwataatmadja arguespracticeinterest has taken root in such a way in people's lives, the ban on interest is carried out gradually so as not to disrupt economic life or cause difficulties for them. The presence of Islamic financial institutions in Indonesia is appropriate and well received by the community and has been growing until now.