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This article tries to raise the theme of the impact of interest (usury) on the development of sharia banking in Indonesia. In the Islamic view, interest paid by conventional banks is included in usury. The practice of usury isu haram because usury is an act that exceeds the nominal amount of the loan. This action is contrary to the teachings of the Islamic religion, Islamic teachings do not allow making additions in the wrong way which can cause injustice. The research method used is a qualitative method by collecting several materials, legal sources and other comparative research materials. This qualitative method uses a secondary approach. A secondary approach can make it easier to obtain discussions from various references and information from various literature studies. The materials and objects used are journals and books. To strengthen understanding, the author emphasizes looking for various relevant journals and various opinions of figures. The research results show that the practice of bank interest (usury) cannot be avoided in the banking industry as a financial institution and an intermediation medium between surplus units (lenders) and deficit units (borrowers). Riba is additional (ziyadah) without compensation that occurs due to delays in previously agreed payments. There are 2 types of usury which can be grouped into 2, namely debt usury and buying and selling usury. The prohibition of usury has also been regulated in several verses and authentic hadiths where a person is commanded to avoid usury because it will harm oneself and others. Overcoming this requires efforts to avoid losses due to the negative impacts it causes. As a result, it creates various economic impacts felt by society, such as gaps in economic growth.      

The development of an institution cannot be separated from the role of the community it self. Apart from quality, the institution must also give priority to the community, consumert or customers to maintain the continuity of the institution or argency. The activities of Islamic banking institutions must be carried out as closely as possible in introducing the products and services offered by Islamic banking with the aim of increasing or even increasing public interest and trust. In connection with this research, this thesis aims to determine the lack of public interest in choosing Islamic banking products. This type of research is qualitaive research and the data collection techniques are observation, interviews and documentation. This research involved 30 respondents in Mekar Sari Village, Kumpeh districh, consisting of various professions. From the results of research conducted by researchers, 8 respondents stated that they were interested in Islamic banking , but only 3 respondents had used Islamic banking services, and the remaining 14 respondents were not interested and used conventional banking services, then 8 respondents did not respond because they assumed that Islamic banking and conventional bank are the same. Based on the data analysis from this research, the public understanding of Islamic banking are internal and external factors, including personality, motivation, attitudes, beliefs lifestyle, religion, experience, family, culture, society and service. Of   these factors, the most dominant main factors are attitude and belief factors, personality factors and community factors themselves.

For the first time in Indonesia, banking regulations have begun to be systematically regulated in Law no. 14 of 1967 which discusses the principles of banking is used as a guideline for the regulation of banking in Indonesia. In 1992, the establishment of Bank Muamalat Indonesia was the beginning of the recognition of sharia banking in Indonesia. Then with the enactment of Law no. 7 of 1992 concerning banking, as amended by Law no. 10 of 1998 explicitly discusses that in Indonesia there are two banking systems, namely conventional banking and sharia banking. The regulations regarding sharia banking in this law are considered not yet specific, therefore it is necessary to specifically establish sharia banking itself in a law, with the establishment of Law no. 21 of 2008 concerning sharia banking. For a long time, banking in Indonesia has made law no. 14 of 1967 concerning the basic principles of banking as guidelines for every bank in Indonesia. In 1992, the establishment of Bank Muamalat Indonesia was the beginning of the recognition of sharia banking in Indonesia. Then with the enactment of Law no. 7 of 1992 concerning banking, as amended by Law no. 10 of 1998 explicitly discusses that in Indonesia there are two banking systems, namely conventional banking and sharia banking. The regulations regarding sharia banking in this law are considered not yet specific, so a law that is clearer and complements the shortcomings of the previous law is needed. Therefore, Law no. 21 of 2008 concerning sharia banking. The final conclusion in this research is that the public recognizes and prefers sharia banking as regulated in Law No. 21 of 2008 because this law can explain and answer specifically the problems that exist in society regarding banking in Indonesia and with the birth of law no. 21 of 2008 is expected to provide justice and togetherness to all Indonesian people based on sharia principles which refer to Islamic law in order to achieve equal distribution of social welfare.

This paper aims to provide an explanation of the contribution of Islamic banking in the framework of national economic development, considering that the Islamic industry has developed rapidly in the last few decades. The method used is a systematic literature review (SLR) by documenting several articles that have similar research. The findings show that economic development aims to improve the welfare of its people. The success of a country's development can be seen from a high and sustainable level of economic growth. This growth can be seen through the increase in the production of industrial goods, the number of schools, the increase in infrastructure, and the increase in the service sector. Economic development will have an impact on changes in the economic structure towards a better stage, so that socio-economic aspects in society can be seen in the form of reduced poverty, unemployment, and increased people's purchasing power. Unstable economic growth has resulted in Indonesia still being in the middle income zone, therefore the participation of all elements of the government, society and the banking sector is no exception. Banking has an important role in advancing the national economy, besides functioning as a collector and distributor of public funds, banking also aims to support the implementation of national development in the framework of increasing equity and economic stability towards increasing the welfare of the community at large. Especially in the Islamic economy, Islamic banking seeks to accelerate economic growth by carrying out financial, commercial and investment activities in accordance with Islamic teachings. Islamic banks are not only banks that eliminate the interest system in their operations but also carry out social welfare oriented roles. The Islamic banking industry has a strategic role in the development of the people's economy, contributing to transforming the economy into productive, value-added and inclusive economic activities.

This study aims to evaluate the effectiveness of digital transformation in the 5.0 era in transforming latent cash waqf assets into productive capital capable of sustainably driving the community’s economy. The study employed a qualitative approach using a literature review method. Data were obtained through literature searches and official documents from the Indonesian Waqf Board, then analyzed descriptively to obtain comprehensive conclusions regarding the effectiveness of digital systems in cash waqf management. The results indicate that financial technology (fintech) such as QRIS, crowdfunding, Islamic banking applications, and digital wallets (e-wallets) are capable of overcoming conventional bureaucratic barriers through the concept of “micro waqf,” which is accessible to all levels of society. Based on the Technology Acceptance Model (TAM) theory, ease of digital access has been proven to increase public interest in waqf because it reduces administrative barriers and concerns regarding transaction amounts. In addition, real-time data-based reporting systems also improve transparency and accountability in waqf management. Therefore, the digitalization of cash waqf in the 5.0 era serves as a form of social engineering in collecting collective funds to sustainably support sharia-based productive sectors.