iarjbmIARJBMIARJBM2708-514710.47310/iarjbm.2020.v01i02.013The Uses of Arabic Jargons and Its Effects for Practices of Islamic Financial Institutions in IndonesiaMulyadiAbdulHamidUunDwi AlMuddatstsirIslamic State Institute of Langsa, IndonesiaThis study aims to analyze the social effects of using Arabic terms on the practices of Islamic financial institutions in Indonesia. By using a socio-linguistic approach, the study finds that the uses of Arabic words have no social effect on the customers' selection of products and services offered by Islamic financial institutions. Customers transact with Islamic financial institutions are due mainly to the nature of their products and services, which are in harmony with Islamic tenets. The use or non-use of Arabic labeled in products and services of the Islamic financial institutions do not affect customers' decision to transact with Islamic financial institutions. These findings suggest that to attract more customers, the Islamic financial institutions should ensure the shari'ah compliance of their operation rather than labeling their products and services with Arabic terms and jargons.