The role of Islamic banking system as the milestone towards Indonesia creative economy development

A model of micro-finance system that allows developing creative industries has been introduced through the role of Shari’ a banking in Indonesia. Because of this phenomenon, many researchers have tried to compare the financial performances of Conventional Bank and Shari’ a Bank. In this study, two state-owned banks in Indonesia (PT. Bank Mandiri and PT. Bank Syariah Mandiri) serve as an object of research based on secondary data for the period of 2007–2011. During this period, Indonesia's economic growth accelerated to a ten-year high of 6.3% in 2007. Based on the Capital, Asset Quality, Management, Earnings, Liquidity (CAMEL) method, there is a difference in the capital aspectrepresented by Capital Adequacy Ratio (CAR), the profitability aspect represented by Return on Asset (ROA) and the liquidity aspect represented by Loan to Deposit Ratio (LDR) of PT. Bank Mandiri and PT. Bank Syariah Mandiri. Meanwhile, there is no difference in the asset quality aspect of both banks represented by Earnings Asset Quality (EAQ). Further result also found that PT. Bank Syariah Mandiri has a better financial performance compared to PT. Bank Mandiri based on CAR and LDR aspects, even thoughfor the profitability aspect (ROA), PT. Bank Mandiri is better than PT Bank Syariah Mandiri. Based on the result, SME's of creative industry in Indonesia can choose the most suitable bank which can provide their needs of fund better. By choosing the right bank, they can minimizing the fund risks, optimizing the fund for their business development and contribute on Indonesia economic development.