The purpose of this research is to analyze and
find out how much influence and the role of the Profit and
Loss Sharing system implemented by Islamic banks on the
growth of Islamic banking in Indonesia. By using a
qualitative research methodology, the results of his
research show that the profit and loss sharing system has
influenced the growth of Islamic banking in Indonesia
since the last five years. Islamic banking products, namely
muḍharabah and musyarakah, which are a source of
operating income from profit sharing, can contribute
significantly to the growth of Islamic banking. The factors
that influence the profit and loss sharing system that
contribute to the growth of Islamic banks in Indonesia are
because the bank interest system applied by conventional
banks is considered not to pay attention to the elements of
fairness and risk in profit and loss sharing, and some
Indonesians consider the bank interest system to be
haram, so that the system of profit and loss sharing is
considered in accordance with Islamic law and paying
attention to the element of justice in profit sharing is an
alternative solution for the community in conducting
banking business activities in Indonesia.
Keywords : Profit Loss Sharing, Growth, Banks, Interest, Solution.