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Abstract

The policy on Islamic banking Indonesia ten years latter made a good progress. After struggling 19 years since it was sounded for the first time in 1973, Indonesian Muamalat Bank was born officially in 1992. It was a bank whose the syaria principles in its operation. Actually, the Act number 7, 1992, was not accommodate yet all the syaria principles, but enough for being the basic of coming of first Islamic bank. Furthermore, the existence of them, more confidence with the Act number 10, 1998 which stated clearly the Islamic bank co-existence with the conventional banks. The result of the article are, that the existence of the regulations on the Islamic banking in Indonesia up to 2002, significance enough toward the progress of Islamic banks. Since the born of the Act 7, 1992 on Banking; then the Act number 10, 1998 on the change of the Act number 7, 1992, Islamic banking has been developing which supported by other finance institutions such as assurance, multi-finance, and soon whose syaria principle in their operation. However, there are a lot of thing must be recovered and protected by the wide umbrella of supported regulations in order to Islamic banking always run under syaria principles, wishing they will give more benefit contribution to the progress of Indonesian economic recovery.

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