Currently, fiat money, interest rate, and fractional reserve banking system have been employed as main instruments in the monetary system all over the world. However, some scholars believe that these three tools are the roots of vulnerability in the economy system as a whole, resulting so many crises occurred over and over again and huge imbalance between monetary and real sector for last centuries. On the other side, Islamic monetary system offers more just and fair instruments, namely real money, profit and loss sharing, and full reserve banking system because those can bridge the monetary and real sector perfectly.  This paper hence attempts to see the effects of Islamic monetary instruments and its conventional counterpart towards real sector growth by taking case study of Indonesia from January 2004 to December 2010. Industrial Production Index (IPI) is utilized as the proxy of real sector growth. Exchange rate (ER), working capital interest rate (R_WK), and quasi money (QM) are used to represent the conventional monetary instruments. Contrary, gold price index (GOLD), mudharabah investment deposits rate (R_MID), and base money (M0) are the representation of Islamic monetary instruments. This finding shows that Islamic monetary instrument is more stable than conventional monetary instrument in responding the shock of exogenous variables.