Strategic Ideas in the Blueprint for Islamic Banking Development in Indonesia: A Conceptual Review

Abstract

This study explores the strategic ideas embedded in the blueprint for Islamic banking development in Indonesia. Through a conceptual review, this paper synthesizes theoretical foundations, empirical literature, and strategic policy frameworks that have shaped Indonesia’s Islamic banking system. By analyzing reputable international literature and policy documentation, the study identifies three major pillars supporting the industry’s advancement: regulatory harmonization, institutional strengthening, and market-based innovation. These strategic ideas are evaluated through interpretive analysis of textual data from global academic sources, aiming to address the knowledge gap in contextualizing Islamic banking strategies within the Indonesian economic landscape. The findings reveal the inadequacy of fragmented regulatory mechanisms, the limited empirical integration of sharia economic principles, and the absence of dynamic innovation incentives tailored to local sociocultural contexts. The paper proposes integrative pathways to align the blueprint with international best practices and indigenous values, offering new theoretical and practical implications. The study contributes to conceptual clarity and encourages more context-aware models for Islamic financial system advancement in Indonesia and similar emerging markets.