DANCING WITH DOUBLE DISRUPTION : COMPARATIVE STUDIES OF INDONESIAN AND MALAYSIAN ISLAMIC (SHARIA) BANKING DEVELOPMENT IN THE DISRUPTIVE INNOVATION ERA

This paper examines the problem of the development of Islamic banks in Indonesia and Malaysia which are known to have a majority Muslim population. The question that is tried to be explained in this paper is how comparison the development of Islamic banks between Indonesia and Malaysia in the Double Disruption era. So far, the explanation that is often put forward is that Islamic banking is developing slowly due to limited society adaptation itothe conditions of the Islamic economic political climate, economic system change ,and new transaction terms/languages. This is considered logical because the understanding of the population and geographical location of the two countries are main causes that occur in the era of double disruption. The author's main argument is that the difference influenced by the step the government is less enthusiastic about managing the financial sector with strong supportive policies. So with this government policy, althought Indonesia is a Muslim majority, the development of Islamic banking is still growing slower rather than development of Malaysia's Islamic banking which is slowly and even rapidly.