DEVELOPMENT OF INDONESIAN SHARIA BANKS WITH MALAYSIA COMPARATION METHOD (STUDY OF HISTORY, PRODUCTS AND LEGAL ASSETS)

Sharia banking is developed in response to economic and cultural groups that are used to accommodate those who want the services to be carried out with Islamic sharia principles and morals. The development of Sharia banks in Indonesia and Malaysia needs to be studied more deeply because Malaysia first established Sharia banks in 1983 through Bank Islam Malaysia Berhad (BIMB) while the first sharia bank in Indonesia, which name of Bank Muamalat, was burned in 1991, which determines the direction of the progress of sharia banks in Indonesia with the provisions of Law Number 10 of 1998 concerning Banking. Determine the amount of assets from banks that have a ratio of 1: 10 with Malaysia considering the assets of sharia banks in Indonesia amounted to US $ 35.62 billion while Malaysia reached US $ 423.2 billion. This study focuses on the factors and effects of legal products from the two countries in order to get more comprehensive study and knowing the relation between the legal products with sharia banking development in Indonesia and Malaysia.


A. INTRODUCTION
The Bank is a financial institution that has an important role in the economy of a country as a financial intermediary.Bank in Article 1 paragraph (2) Law No. 10 of 1998 concerning amendment to Law No. 7 of 1992 concerning banking is a business entity that collects funds from the public in the form of deposits and distributes it to the public in the form of credit or other forms in order to improve the standard of living of the people.While Islamic Banks are banks that follow the Islamic economic system.
As for the Islamic economy according to Fazlurrahman, "Islamic economics according to the builders and supporters are built on or at least colored by the principles of religious, world-oriented and the hereafter."In 1992 Bank Muamalat Indonesia was established as a sign of the dual definition of banks, commercial banks and banks People's Credit in Law Number 10 of 1998 Article 1 concerning banking, namely: "Banks are business entities that collect public funds in the form of deposits and channel them to the public in the form of credit and / or other forms in order to improve the standard of living of the people.While the definition of a commercial bank is a bank that conducts business activities conventionally and / or "based on sharia principles" which in its activities provides services in payment traffic. 1  Product development policies or approaches chosen by the sharia banking authorities also determine the products and services offered to customers.A product development approach that is careful of Sharia principles will lead to products and services that are always compliant to Shariah principles Syariah in accordance with Sharia principles.Consequently, product development is slower.Conversely, a pragmatic and market driven product development approach will generally lead to a variety of product variations along with similar products in conventional banking.This approach generally adheres to sharia provisions that are more lax, so that the instruments and products produced are creative and innovative following market demand.

B. METHOD
Normative legal research is a type of legal research used in this study.Normative legal research will rely on a method with a focus on library law research using library materials, as well as applicable laws and regulations.
In this legal research a Comparative Approach is used where the comparative approach is carried out by comparing the laws of a country with the laws of one or more other countries regarding the same thing, but it can also be compared in the same law.that is, court decisions in several countries for the same case3 Primary legal materials that will be used in the writing, compilation and presentation of this legal research are the legal provisions in the Sharia Banking Act, as well as secondary legal materials related to books, literature, written results of legal experts and doctrines relevant to the discussion on legal research this.
The technique of gathering legal material in this research uses document studies (literature studies).Analysis of primary legal materials and secondary legal materials was carried out by the method of systematic interpretation, then interpreted with the meaning more attention to symbolic issues than the issue of the substance of the application of Islamic banking that adheres to sharia principles.This is related to the Muslim population which is relatively not dominant so that the implementation of Islamic practices becomes a representation of maintaining the existence of Muslim society, so that attention to the compliance of Islamic principles is still not the main focus.On the contrary, what happened in Indonesia, with a population that was so dominant and the demands of the Muslim community who hoped for banking operations in an ideal form, Islamic banking oparational must pay attention to the substance, especially operational compliance with sharia principles.From one side this is seen as a positive trend, because there has been supervision by the community.
Besides that the development of Islamic banking in Malaysia is a national agenda, in contrast to Indonesia where the development of Islamic banking is dominated by Bank Indonesia initiatives.
In the development of Malaysian Islamic banking it is seen that the issue of sharia compliance is relatively less of a concern.This should be a competitive advantage for the Indonesian Islamic banking industry, where in the development of the sharia banking industry in Indonesia, compliance with sharia principles is one of the basic considerations in industrial development.This advantage can be used as a strong capital in promotion to attract foreign investors (especially the Middle East who are currently enjoying petro dollars due to the increase in world crude oil prices).
Meanwhile, financing channeled by Malaysian Islamic banking is dominated by Bai 'Bithaman Ajil (BBA) and Murabahah portfolios where the share of the share of profit sharing is only 0.05%.On the contrary, the financing portfolio in Indonesian Islamic banking is relatively varied, where the profit sharing portfolio reaches 33%.

Sharia Banking Development Strategy in Malaysia and Indonesia
The long-term goal to be achieved in the development of Islamic banking in Malaysia is to create a comprehensive Islamic financial and banking system that operates parallel to the conventional banking system.To create a strong banking three foreign sharia financial institutions and four Takaful with the participation of foreign parties.In addition, at this stage efforts were also made to: 1) improve regulatory, prudential and operational frameworks; 2) review return to the legislative process and the court; 3) developing the Sharia governance framework by establishing the National Shariah Advisory Council at BNM and Shariah Committees in Islamic financial institutions; and 4) forming endowment funds for sharia experts to support their role.
On the basis of encouraging community needs for Islamic banking services, the first Islamic bank was established in 1992 and the Indonesian government began introducing the dual banking system.The Government's commitment in the development of sharia banking has only begun to be felt since 1998 which provides wide opportunities for Islamic banks to develop.The following year Bank Indonesia (the central bank) was given the mandate to develop Islamic banking in Indonesia.In addition to adhering to a market driven and fair treatment strategy, the development of Islamic banking in Indonesia is carried out with a gradual and sustainable approach in accordance with Sharia principles (comply to Sharia principles).The first stage was intended to lay the foundation for a strong growth of Islamic banking (2002 -2004).
The next phase enters a phase to strengthen the structure of the Islamic banking industry (2004 -2008).Meanwhile, the third stage of Islamic banking is directed to be able to meet international financial and service quality standards (2008 -2011).In 2011, it is expected that Indonesian Islamic banking has a significant share that will take part in developing the Indonesian economy which will prosper the wider community.

Comparison of Products
Islamic banking products and services in Malaysia vary greatly to more than 40 types of sharia financial products and services using various contracts.These products and services include products and services for funding, financing, trade finance, banking services, card services, card services, and treasury and money market Law Number 10 of 1998 Article 1 Paragraph 13 concerning banking states what is meant by sharia principles, namely: "Sharia principles are rules of agreement based on Islamic law between banks and other parties to deposit funds and or finance business activities, or other activities stated in accordance with sharia, including financing based on profit sharing principles (mudaraba), financing based on equity participation (musyarakah), the principle of buying and selling goods by obtaining profits (mudharabah), or financing capital goods based on the principle of pure choice without choice (ijarah).Or with the transfer of ownership of goods rented from the bank by another party (ijarah wa iqtina) ".Development Of Indonesian Sharia Banks With Malaysia Comparation Method (Study Of History, Products And Legal Assets) Number 21 of 2008 article 1 paragraph 12 concerning Islamic Banking states that what is meant by sharia principles is the principle of Islamic law in banking activities based on fatwas issued by institutions that have authority in determining fatwas in the field of sharia.From the definition of the bank mentioned above, it can be concluded that a Sharia Bank is a business entity that carries out its intermediary function based on sharia principles or in other words the bank in its activities, both fund raising and distribution of funds provides compensation on the basis of sharia principles.The position of Islamic banks in the law greatly influences the movement of Islamic banks in the country.Islamic banks operating under Islamic banking laws will be more free to operate in sharia compared to Islamic banks operating under banking laws in general.Because of the characteristics of Islamic banks that are typical and different from banks conventionally, Islamic banks will be shackled by their mobility if limited by conventional banking laws.For example, Islamic banks under conventional bank laws may not be allowed to buy and sell goods, it may not be permitted to lease goods, and so on.In fact, Islamic banks are allowed to use a sale and purchase contract (murabahah, salam, or istishna) or rent (ijarah or ijarah muntahiya bittamlik).

Overview of the Society in Malaysia and Indonesia
formulation of research problems related to the factors and effects of legal products from the two countries to obtain a more comprehensive study and the relationship between legal products and the development of Islamic banking in Indonesia and others 10%.However, the official state religion is Islam.Therefore, the Malaysian government has an obligation to accommodate the development of Islamic financial institutions in Malaysia in accordance with the Islamic religion adopted by the state and the majority of its people.On that basis Malaysia began implementing dual economic systems and developing Islamic financial and banking systems since 1983.Indonesia is the largest archipelagic country in the world with diverse ethnicities, languages, and religions with a population of 240 million.Although not an Islamic country, Indonesia is a country with the largest Muslim population in the world with a population of Muslims as much as 88%, Christians 5%, Catholics 3%, Hindus 2%, Buddhists 1%, and others 1%.With the increasingly advanced financial and banking systems as well as the increasing welfare, the needs of the community, especially Muslims, who want banking services that are in accordance with the principles of Sharia religion that he adheres to become even greater.2.

Regulation of Sharia Banking in Malaysia and Indonesia
Thus Islamic banks in Indonesia are universal banks that can try as consumer banking, investment banking, merchant banking, leasing companies, investment agents, and as an institution of zakat infaq and sadaqah amil.The difference in operations between BUS and UUS is almost absent except in terms of freedom of management policy.BUS is its own business entity that has policy independence, so it has autonomy in choosing its business strategy and banking, leasing company, investment agent, and as an institution of zakat infaq and sadaqah.The difference in operations between BUS and UUS is almost absent except in terms of freedom of management policy.BUS is its own business entity that has policy independence, so it has autonomy in choosing its business strategy and development.Meanwhile, UUS is part of its parent conventional bank, so it lacks the freedom to determine management policies.5IslamicbanksinIndonesia,whetherinthe form of Islamic public banks or BUS (full fledged Islamic banks), sharia business units or UUS (full branch Islamic banks), or sharia people's credit banks or BPRS, are under banking law(Law No   .10 of 1998).Banking operations with Sharia principles are fully accommodated by law.Thus, Islamic banks in Indonesia can make transactions based on deposits, loans, for results, buying and selling, leasing, and other principles permitted by Sharia.4IbidPage10.5 Saeed, Abdullah (1999), Islamic Banking and Interest: A study of the Prohibition of Riba and its Contemporary Interpretation, EJ Brill, Leiden.Page 32.

of Sharia Banking in General Aspects between Malaysia and Indonesia
the legal framework.The next stage is to increase the volume and create a market for Islamic financial institutions so that Islamic financial institutions can compete.The third stage is to create harmonization and convergence with the international Islamic financial market so that Malaysian Islamic financial institutions can compete internationally.The first phase of development began with the issuance of the Islamic Banking Act (IBA) on April 7, 1983.With the promulgation of the IBA, Bank Negara Malaysia (BNM) was authorized to regulate and supervise Islamic banks, as well as conventional banks.The first Islamic bank was Bank Islam Malaysia Berhad (BIMB) as pilot projects.In the following year, in 1994, the Islamic Interbank Money Market was established on January 4 to connect Islamic financial institutions through Sharia money market instruments, which also became a milestone in the development of Islamic financial instruments.Meanwhile, the sharia capital market followed in 1996 which encouraged the development of Sharia securities.In an effort to smooth and harmonize interpretations of Sharia provisions, a Sharia Advisory Board for Islamic Banking and Insurance was established on May 1 (National Sharia Advisory Council on Islamic Banking and Takaful or NSAC), as the highest Sharia authority in banking and sharia insurance.in Malaysia.In addition, during this second phase of development, the second Islamic bank was established on