The Effectiveness of Spin off As a Breakthrough in Promoting Islamic Banking in Indonesia

The Article 68 of Law No. 21 of 2008 on Sharia/Islamic Banking has stipulated the policy of UUS Splitting (Spinoff) to the Conventional Commercial Bank in Indonesia. This study aimed at determining the effectiveness of this policy based on Friedman's theory of legal system. It is a juridical empirical research with data collection techniques including library research, interview and observation on BNI Syariah and Bukopin Syariah as banks that had been implemented spin off. According to Friedman, three factors to examine the effectiveness of a legal instrument are the structure of law, the substance of law and the legal culture. Based on Friedman's theory the effectiveness of spinoffin the context of Indonesia is categorized as less optimal.