Book chapters - International Seminar The International Seminar on Business, Economics, Social Science and Technology (ISBEST) 2018 Customer Perception of Islamic Bank Products (Case Study of Islamic Bank "X") Dra. Any Meilani, M.Si any@ecampus.ut.ac.id M. Fuad Hadziq fuadhadziq@ecampus.ut.ac.id Islamic Economics, Universitas Terbuka The purpose of research is to analyze the level of customer perceptions of the product of Islamic Bank "X". The research location is three areas of the biggest of customer Islamic Bank "X". There are Surabaya, Bandung and Jakarta. The research sample are 180 people from each region and 60 people based on accidental sampling. The data collection is questionnaires. The questionnaire consists of profiles and customer perceptions of the "X" Islamic Bank product. Profiles consist of: gender, Job, religion, and education. The perception indicator uses a Likert scale of 4 points (1, Strongly Disagree; 2, Disagree; 3, Agree; and 4, Strongly Agree) which consists of 14 attributes. The level of perception of Islamic bank products was analyzed by the method of Importance Performance (IPA) and Customer Satisfaction Index (CSI). The results of the study are: 1) Based on IPA, access and popular attributes are the top priority for the Syariah Bank "X" so that satisfaction can be achieved due to good attributes, while Islamic Bank "X" has not provided services that meet customer expectations, and 2) . The results of CSI calculations show that the perception of the Islamic Bank "X" is very satisfied with the products offered by the Islamic Bank "X". Keywords: perceptions, products, Islamic banks Preliminary Islamic banking in Indonesia has grown greatly since the issuance of operational legal bases about Islamic banking. Regulation No. 10 of 1998 concerning changes to Law Number 7 of 1992 concerning banking, that Bank Indonesia as the monetary authority guarantees the legality of Islamic banks and provides wider space for Islamic banks. The development of Islamic banking shows the growth in the number of Sharia banking office networks. However, there are still some obstacles and weaknesses in terms of Islamic banks: the extensive operating network, incomplete and effective supporting institutions, not optimal and the lack of human resources with expertise in Islamic banking. From the consumer side, another weakness is the limited understanding of the public regarding sharia banking financial services business activities. This limitation causes many people to have inappropriate perceptions about the operation of Islamic banks. Based on the OJK survey in 2013 in 20 Indonesian provinces, the level of financial literacy of Indonesian people classified as well literate only reached 21.84 percent. Especially for banks, the literacy rate is a high category (21.80 percent).This shows that the community is knowledgeable and believes in banking institutions, products, banking services, and has skills in using banking products and services, only one fifth of the total population. The low level of financial literacy is in line with the low utilization of banking products and services by the community: 57.28 percent (Muflihani, 2015). Based on the results of a study conducted by Muflihani (2015) on 70 micro-entrepreneurs who have become sharia bank customers, it is known that 40% of respondents have a low level of literacy on Islamic banking. This is based on the still low understanding of micro-entrepreneurs on the concept of Islamic banks, Islamic banking products and services and skills in using Islamic bank products. Many of the weaknesses and challenges of Islamic banks are related to people's perceptions of Islamic banks. These weaknesses are limited, lack of public knowledge and understanding of Islamic bank products and services. There are still many segments of society that must be the target of optimal socialization, especially segments of society that are considered to be in an environment that has the potential to grow and implement sharia values.