Can Islamic Banking Drive SDGs Achievement within Minority Muslim Communities? A SWOT-based Analysis from Bali, Indonesia

Dian Sugiarti, Anisa Zahwa Akbara, Muhammad Anis, Yudhistira Ardana, Ni Made Ayu Krisna Cahyadi, M. Fuad Hadziq, Roby Tri Wahyudi

Abstract


Purpose – This study aims to investigates the strategic role of Islamic banking in advancing Sustainable Development Goals (SDGs), specifically No Poverty (1), Decent Work and Economic Growth (8), and Reduced Inequalities (10), within the unique socio-religious landscape of a Muslim minority in Bali.

Methodology – Employing an exploratory-strategic qualitative design, this research utilizes semi-structured interviews with nine key informants, including Sharia banking practitioners, cross-faith customers (Muslim and non-Muslim), and academics, triangulated with field observations and industry reports. Data were analyzed through a systematic SWOT framework integrated with Internal-External Factor Analysis (IFAS/EFAS) and Grand Strategy matrices.

Findings – The findings reveal that while Islamic banking possesses robust ethical-inclusive foundations aligned with SDG principles, its impact is hindered by systemic constraints: suboptimal human resource capacity and low financial literacy. Externally, the burgeoning halal tourism sector in Bali presents a significant strategic opportunity, yet remains contested by conventional banking dominance and persistent social stigma. Moving beyond descriptive reporting, this study contributes a novel strategic model for Islamic financial inclusion in non-Muslim majority regions, shifting the discourse from purely religious compliance to socio-economic resilience.

 Implication – The results imply that achieving SDGs in minority contexts requires a transition toward digital transformation and cross-cultural financial literacy. This research offers a replicable strategic roadmap for policymakers to optimize Islamic finance as a catalyst for inclusive regional growth.


Keywords


Islamic banking; sustainable development goals; minority Muslim communities; SWOT analysis

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DOI: https://doi.org/10.17509/rief.v9i1.97685

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