ISLAMIC FINANCIAL DEVELOPMENT AND HUMAN WELFARE: A QUANTITATIVE ANALYSIS OF INDONESIA'S DEVELOPMENT
Keywords:
Islamic Financial Literacy, Financial Inclusion, Human Development Index, Shariah Finance, Development EconomicsAbstract
This study examines the relationship between Islamic financial literacy, financial inclusion, and the Human Development Index (HDI) in Indonesia from 2021 to 2023. Using quantitative analysis with multiple regression methods, the research analyzes secondary data from the Financial Services Authority (OJK) and the Central Statistics Agency (BPS). The findings reveal that Islamic financial institutions have a positive impact on human development, while Islamic financial investment shows a negative correlation. The study identifies several challenges, including limited access to Islamic financial services in remote areas, insufficient understanding of Shariah principles, and inadequate education about Islamic financial products. The research contributes to the growing literature on Islamic finance and development economics by providing empirical evidence of how Islamic financial services can influence human development outcomes. The findings suggest that policymakers should focus on expanding Islamic financial literacy programs and improving access to Shariah-compliant financial services to enhance human development in Indonesia.
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Copyright (c) 2025 Khairisma Khairisma, Fanny Nailufar, Mukhlish Muhammad Nur, Haji Razli Ramli
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