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"Building an effective legal and regulatory framework for Islamic banking is imperative. Initiative to enact Islamic banking laws in Indonesia can be regarded in this respect. The objective of this paper is to examine the critical issues in Islamic banking laws. This paper examines and highlights the main features of Islamic banking laws. It is suggested that the main goal of the laws are to enhance Shari’ compliance and promoting stability of the system. Despite the progress achieved through this approach, it is recommended that Islamic banking development needs more efforts and initiatives. This paper also attempts to provide an analysis of future direction in the development of Islamic banking industry in Indonesia."

"Abstract. Building an effective legal and regulatory framework for Islamic banking is imperative. Initiative toenact Islamic banking laws in Indonesia can be regarded in this respect. The objective of this paper is to examinethe critical issues in Islamic banking laws. This paper examines and highlights the main features of Islamic bankinglaws. It is suggested that the main goal of the laws are to enhance Shari? compliance and promoting stabilityof the system. Despite the progress achieved through this approach, it is recommended that Islamic bankingdevelopment needs more efforts and initiatives. This paper also attempts to provide an analysis of future directionin the development of Islamic banking industry in Indonesia."

"Performance gap in business management practices in Indonesia comparing to global rivals is caused by "structural problem". Indonesia environment is not "conductive" for business activities. This fact can be seen in annual research reports by World Bank through its affiliation company (International Finance Corp) with grand themes "Doing Business". In that report, Indonesia have low rank in many aspects that support "business-friendly environment". This paper tried to describe that without proper handling in its structural problems, there will be difficult for Indonesian businessman/woman to "closing the performance gap" with global rivals. This paper will describe some experience in other countries that facing 'gap' in business management practices because of the same problem like Indonesia and this paper also discussed some alternatives strategy for government as regulator, especially to handle this problem."