Analysis of Muhammadiyah’s Policies in Using Islamic Banking Services in Indonesia

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International Journal of Research and Scientific Innovation (IJRSI) | Volume IX, Issue IV, April 2022 | ISSN 2321–2705

Analysis of Muhammadiyah’s Policies in Using Islamic Banking Services in Indonesia

Anton Hindardjo1, Tiolina Evi2
1Department of Islamic Bank, STEI SEBI, 2Department of Accounting, Perbanas Institituteerbanas Institute

IJRISS Call for paper

Abstract: Muhammadiyah with it’s thousands of AUM as the source of Persyarikatan has economic cooperation and bargaining with the conventional banks. With the decree No.37/KEP/1.0/C/2012 about islamic banking partner, then Persyarikatan funds must be moved entirely to the banking partners in cash management service. This study attempts to know the degree to which the policy of Muhammadiyah is in the use of islamic banking. Data is collected from interviews with Mr. Mukhaer Pakkanna S.E., M.M. as vice chairman of majelis economic and entrepreneurship outlined by using as well as several other sources outlined by using qualitative analysis descriptive. The results show that AUM has used islamic banking despite in the use of service cash management has not been reached optimal. This is caused by several factors, the are: obscurity of the content and policies sanctions and lack of socialization deeply to the implementors, AUM management, and members of muhammadiyah overall. In addition, the use of islamic banking is not yet optimal because the bureaucracy structure of AUM which is related to the government and other stakeholder

Keywords: Policy, Economic, Muhammadiyah, Islamic banking


Indonesia, a country with the highest Moslem population of 88.1 percent should be the place of Islamic economy to develop faster than any other country in the world. But in fact, the development of islamic banking is under the conventional one which is just 5,1 percent of the national banking (Dakhoir, 2017). This condition caused by several factors, one of it is the lack of contribution from Islamic organization which can support islamic banking development. This is proved by their strong relation with the conventional banks (Akhtar, 2011). Muhammadiyah as the largest organization in Indonesia with it’s spirit of innovation, has some policies to improve the development of Islamic economy, especially in banking. Through those policies, Muhammadiyah instructed to all leaders of Amal Usaha Muhammadiyah and several members so volunteers to do muamalah based on the Islamic principle and also to increase the appreciation of islamic economy and develop ecomonic culture based on islamic principle (Pranawati, 2006)
Besides, Muhammadiyah with it’s thousands of Amal Usaha have fund potential to be managed productively, effective and accountable. So far, fund management from each AUM is given to each leader of region, branch even subsection which caused that fund could not be managed effectively and efficiently. Then, PP Muhammadiyah wanted to manage the Persyarikatan finance by cash management system so that can