Author(s): Nun Harrieti, Lastuti Abubakar, Etty Djukardi, Neneng Nurhasanah
The Sharia financial system includes not only commercial finance but also social finance such as zakat, infaq, sodaqoh and waqf, these two aspects cannot be separated from each other. Sharia banking as part of the sharia financial system also has these two aspects. In addition to having an intermediary function, sharia banking in Indonesia also has a social function, namely as Baitul Mal Institution and Sharia Financial Institution-Recipient of Money Waqf (LKS-PWU), but in practice this has not been optimal, whereas optimization in the integration of commercial and social finance within sharia banking can be one solution in improving the community’s welfare. The Objective of this research is to find the challenges of sharia banking in Indonesia in optimization the integration of commercial finance and social finance. This research was engaging a normative juridical research method with analytical descriptive approach. The challenges of sharia banking in Indonesia regarding the integration of commercial and social finance is located on optimizing the integration of its social and intermediary function, which in this case Sharia Banking is not only limited to act as baitul mal institution and Sharia Financial Institution-Recipient of Money Waqf (LKS-PWU) and handed over of its management to zakat and waqf institution, but also given the authority to act as direct manager of the community’s social fundi.