<p>This paper aims to analyze the dinamics interaction of islamic banking <br />sector with Indonesian economic growth for 2000-2010. The methode <br />of analyze used in this research is granger causality and Vector Error <br />Correction Model (VECM). Besides that we use stationary test to <br />chek wether the data have unit root or not. We use time series data <br />of total islamic bank fnancing, fxed invesstment, trade and gross <br />domestic product. We found that in the short run there is evidence of <br />bidirectional relationship between fnancing of islamic bank, fxed <br />investment, trade and economi growth. Where as in the long run <br />there is relationship between islamic banking with economic growth <br />on Indonesian economy. To improve the role of islamic banking on <br />Indonesian economy, Bank Indonesia must push islamic banking to <br />expand their activity on riil sector and rural area.</p><p><br />Keywords: Islamic Banking sector, Financial Intermediary, Economic <br />Growth, Vector Error Corrrection Model</p>