The Implementation of Islamic Principles in Sharia Financial Institutions

Abstract

This study examines Islamic Financial Institutions (IFI), which are currently experiencing rapid growth across Indonesia, with numerous variations emerging, including various Islamic institutions. Operating in accordance with Islamic law, IFI initially provided an alternative for Muslims seeking to avoid the practices of conventional banks and financial institutions; however, they also serve as viable options for non-Muslims. The study addresses the pressing issue of implementing Islamic principles within IFI and explores the necessary conditions for their application. Employing a normative legal approach with case studies, the research highlights the challenges and frameworks surrounding IFI, concluding that IFI organizers must maintain a clear vision that aligns with Islamic principles to ensure their operations remain true to Islamic tenets.