Abstract: Indonesia is a dominant Moslem country in the world. This condition makes the Sharia Banking growing easily. As a consequence, the education and socialization processes of the Sharia banking system in this country are done intensively. These processes are expected to increase public awareness and interests to use Sharia banks. However, literatures on the development and the legal basis of Sharia banks in Indonesia have been limited. For this reason, this paper aims at discussing the development and the legal basis of Sharia banks in Indonesia. The method used to discuss is by using secondary sources advance in literature with particular concern on both national and Islamic rules and laws concerning with Sharia banking systems. This study found that the large number of Muslim population in Indonesia have not been well-informed about the development of Sharia banking systems, although National rules and laws to support the development of Sharia Banks have been many. In addition, it was also argued that the development of Sharia banks can be one solution to improve the economic development in Indonesia. However, much remain to be done by the Sharia banks to promote their financial activity to public at large in Indonesia.