The bank was founded in 1 November 1991, based on the initiative of the Indonesian Council of Ulamas (MUI) and under the auspices of the Government of Indonesia.

Funding products apply the principles of wadiah (deposit) and mudarabah (profit-sharing).

Financing products apply the principles of bai’ (buy and sell), musharakah (equity sharing), mudarabah, and ijarah (rent).

[citation needed] Currently, 82.65% stake of Bank Muamalat is owned by an Indonesian government agency, Hajj Fund Management Agency (BPKH), followed by Andre Mirza Hartawan (commissioner of the bank) with 5.19%, the Islamic Development Bank (IsDB) with 2.04% shares, and others (10.11%).

[2] The bank announced the plan for the company to be listed in the Indonesia Stock Exchange by late 2023.