Empirical Evidence of the Impact of Islamic Financial Inclusion on Human Welfare of Maqashid Sharia Perspective in Indonesia

Rani Puspitaningrum



PurposeThe study aims to determine the effect of Islamic financial inclusion using 3 (three) dimensions, namely accessibility, availability, and use (usage of banking services) of Islamic banking in Indonesia on the concept of welfare which includes 5 (five) elements: protection (hifz) of religion (din), mind ('aql), soul (nafs), offspring (nasl), and property (mal).

Methodology - The Islamic financial inclusion components are represented by several variables: the total number of third-party funds and financing, the total number of deposit accounts, and Automated Teller Machines (ATM) of Islamic banking. Meanwhile, the Islamic Human Development Index (I-HDI) is a suggested variable that represents welfare in the perspective of maqashid sharia. The research data used is annual data from 2010-2019 and then analyzed by multiple linear regression method.  

Findings - The result shows that Islamic financial inclusion has a significant effect on people's welfare in Indonesia. Variable availability (availability) and the use of Islamic banking services (usage of banking services) have a real influence, but not so on the variable accessibility (accessibility). The increase in Islamic financial services indicated by the increase in third-party funds and financing in Islamic banking will also improve human welfare.

Keywords: Islamic financial inclusion, Islamic Human Development Index (I-HDI), material welfare index (MWI), non-material welfare index (NWI), maqashid sharia.


Islamic financial inclusion, Islamic Human Development Index (I-HDI), material welfare index (MWI), non-material welfare index (NWI), maqashid sharia.

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DOI: https://doi.org/10.17509/rief.v4i1.35601


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