Muhammad Syafii Antonio is a figure who contemporary Islamic Economics in Indonesia who is very well known and contributed many thoughts to the development of Islamic economics, especially sharia banking in Indonesia. This article aims to reveal the concept of Islamic banking and government policy in developing Islamic banking in Indonesia's version of Muhammad Syafii Antonio. The method used is a literature review with the primary source of the book " Sharia Banking From Theory to Praktik ". The study results show that Islamic Banking presents a way for Muslims to use banking services free from elements of interest. Conventional banks are an alternative for people who are incompatible with interest systems and prefer a profit-sharing system. As a system, Islamic banks apply Islamic principles, namely deposit (wakalah), profit sharing (sirkah), buying and selling (murabahah), leasing (ijarah) and service principles. The problems faced in the developing Islamic Banking in Indonesia are that the public does not yet have a proper understanding of Islamic banks, existing regulations have not fully accommodated the operational system of Islamic banks, Islamic banking does not yet have a vast network reaching various corners, and there is still a lack of human resources with expertise in sharia banking. The policy steps taken by the government include: continuing to socialize sharia banking to all level of society, making improvements to applicable regulations, continuing to develop sharia bank networks throughout Indonesia and increasing sharia banking outreach to all levels of society.