The development of Islamic banking system in Indonesia is carried out within the framework of a dual-banking system or the dual banking system within the framework of the Indonesian Banking Architecture (API), to present an alternative that the complete banking services to the people of Indonesia. Taken together, the system of Islamic banking and conventional banking in synergy to support the mobilization of public funds more broadly to improve financing for national economic sectors.
Characteristics of Islamic banking system that operates on the principle of profit sharing provides an alternative banking system of mutual benefit for the community and the bank, and highlight aspects of fairness in trade, ethical investment, promote the values ​​of togetherness and brotherhood in production, and avoid speculative activity in financial transactions . By providing a variety of banking products and services that varied with the financial scheme that is more varied, Islamic banking as an alternative banking system that is credible and can dinimati Indonesia by all segments of society without exception.
In the context of macro economic management, the widespread use of various products and Islamic financial instruments will be able to glue the relationship between the financial sector, real sector and creating harmony between the two sectors. The more widespread use of Islamic products and instruments in addition to supporting the financial activities and business community will also reduce the transactions that are speculative, thus supporting the overall financial system stability, which in turn will contribute significantly to the achievement of price stability in the medium-term.
With the enactment of Law No.21 of 2008 concerning Islamic Banking which was published on July 16, 2008, the development of a national Islamic banking industry increasingly has a sufficient legal basis and will encourage the growth is even faster. With impressive progress in its development, which reached an average asset growth of more than 65% annually the past five years, it is expected that Islamic banking industry's role in supporting the national economy will be increasingly significant.

Sharia Banking Development Policy in IndonesiaTo provide guidance to stakeholders of Islamic banking and put the position and outlook of Bank Indonesia in developing Islamic banking in Indonesia, then in 2002, Bank Indonesia has issued a "Blueprint of Islamic Banking Development in Indonesia." In preparation, many aspects have been considered in a comprehensive manner, including the actual condition of the national Islamic banking industry and its related tools, the development trend of Islamic banking industry in the international and national development of Islamic financial system that began to materialize, and not apart from the framework of financial system are more macro like the Indonesian Banking Architecture (API) and the Indonesian Financial System Architecture (ASKI) and international best practices formulated by Islamic financial institutions internationally, such as the IFSB (Islamic Financial Services Board), AAOIFI and IIFM.
The development of Islamic banking is directed to provide the highest benefits to society and contribute optimally to the national economy. Therefore, the direction of the development of a national Islamic banking is always referred to other strategic plans, such as the Indonesian Banking Architecture (API), Indonesian Financial System Architecture (ASKI), as well as National Medium Term Development Plan (RPJMN) and National Long Term Development Plan (RPJPN). Thus, efforts to develop Islamic banking is part and activities that support the achievement of the strategic plan in a larger scale at the national level.
"Blueprint of Islamic Banking Development in Indonesia" with a vision, mission and goals of the development of Islamic banking as well as a set of strategic initiatives with clear priorities to address key challenges and achieve the target within the next 10 years, namely the achievement of Islamic banking market share in significant deepening the role of Islamic banking in the financial activities of national, regional and international levels, the condition is being formed with the integration of other Islamic financial sector.
In the short term, a national Islamic banking is more directed toward servicing the domestic market is huge potential. In other words, a national Islamic banking should be able to be a domestic player but has the quality of service and performance with international standards.
Ultimately, the Islamic banking system to be established by Bank Indonesia is a modern Islamic banking, which is universal, open to all Indonesian citizens without exception. A banking system that delivers applicative forms of economic tenets formulated by wise, in the present context the problems being faced by Indonesia, and with due regard to socio-cultural conditions in which the nation's history of travel writing. Only in that way, then efforts to develop Islamic banking system will always be seen and accepted by the entire people of Indonesia as part of the solution of various problems of the country.
Grand Strategy of Islamic Banking Market DevelopmentAs a concrete step efforts to develop Islamic banking in Indonesia, Bank Indonesia has formulated a Grand Strategy of Islamic Banking Market Development, a comprehensive strategy of market development include strategic aspects, namely: determining the vision of 2010 as a leading Islamic banking industry in ASEAN, creating image new national Islamic banking which is inclusive and universal, market mapping more accurately, a more diverse product development, service improvement, as well as new communications strategy that positioned the Islamic banking is more than just a bank.
Furthermore, different concrete programs have been and will be done as the implementation stage of the grand strategy of development of Islamic banking financial markets, among others, are as follows:
First, implement a new vision of Islamic banking development in Phase I in 2008 to build an understanding of Islamic banking as a Beyond Banking, with the achievement of the target assets of Rp 50 trillion and industry growth by 40%, Phase II in 2009 made the Indonesian Islamic banking as the most attractive Islamic banking in ASEAN, with the achievement of the target assets valued at Rp.87 trillion and industry growth by 75%. Phase III in 2010 made the Indonesian Islamic banking as the leading Islamic banks in ASEAN, with the achievement of targets and assets amounting to Rp.124 trillion industry growth of 81%.
Second, a new imaging program that includes aspects of Islamic banking positioning, differentiation, and branding. The new positioning of Islamic banks as a banking mutually beneficial to both parties, aspects of differentiation with a competitive advantage with products and schemes are diverse, transparent, competent and ethical finance, information technology is always up-date and user friendly, and the presence of Islamic financial investment expert adequate. While in the aspect of branding is "Islamic banking is more than just a bank or banking beyond."
Third, the new mapping program is more accurate on the market potential of Islamic banking which generally directs Islamic bank services as universal service or a bank for all levels of society and all segments in accordance with their respective strategies of Islamic banks.
Fourth, product development programs directed at a diverse variety of products supported by the unique value offered (mutual benefit) and an extensive office network support and the use of standard product names are easy to understand.
Fifth, service quality improvement programs that are supported by competent human resources and provision of information technology that is able to meet customer needs and satisfaction and be able to communicate the Islamic bank products and services to customers correctly and clearly, to remain in compliance with Islamic principles; and
Sixth, outreach programs and public education more broadly and efficiently through various direct, or indirect (print, electronic, online / web-site), which aims to provide an understanding of the benefits of Islamic banking products and services that can be utilized by community.

Source: http://www.bi.go.id