Purpose
This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.
Design/methodology/approach
This study uses the analytic network process (ANP) to gather expert opinions and responses from academics, regulators and practitioners.
Findings
The ANP analysis discovered that the level of Islamic financial inclusion in Indonesia is influenced by two main drivers: the supply and the demand. The demand factors for Islamic financial inclusion, ranked based on their level of significance, are as follows: financial literacy (0.27), religious commitment (0.22), socioeconomic factor (0.19) and social influence (0.17), respectively. From the supply side, primary catalysts for Islamic financial inclusion based on their level of importance are human capital (0.32), product and services (0.24), infrastructure (0.18) and policies and regulation (0.17), respectively.
Research limitations/implications
The present study does not include the Islamic insurance sector in its determinant framework of Islamic financial inclusion in Indonesia.
Practical implications
This study serves as a reference for regulators in formulating appropriate policy strategies to strengthen the Islamic financial inclusion in Indonesia.
Originality/value
This study is a pioneer attempt to identify distinctive factors that influence the level of Islamic financial inclusion in Indonesia by analyzing expert opinions from diverse groups of Islamic finance stakeholders.
Purpose-The paper aims to produce new key terminologies for the microfoundations of Islamic economics. The paper attempts to investigate the microfoundations of Islamic economics by exploring new perspective in the key concepts and key terminologies that would explain the behavior of individual and society in an Islamic ethical framework. Design/methodology/approach-The paper is a conceptual paper that attempts to explore the microfoundations of Islamic economics from the primary sources of Qur'anic texts. Literature on the topics, from an Islamic and mainstream economics perspective, are reviewed critically in a comparative perspective. Findings-The key concepts of self-interest, utility maximization and rationality are critically evaluated in an Islamic perspective and new key concepts of huquq, maslahah maximization and taqwa are proposed as alternatives. Those new key terminologies will broaden the horizon in understanding of economic realities of man and society and their relationship and well-being. Research limitations/implications-The paper is based on conceptual explorations of literature in the microfoundations of economics in the mainstream economics and Islamic economics. This is a conceptual paper, so it did not use any empirical analysis. Practical implications-The findings of this paper will give insights of the microfoundations of Islamic economics as a discipline. Those unique key terminologies derived from the textual source of Islam (nusus) and intellectual tradition (turath) are important in the attempt to develop a solid body of knowledge. Originality/value-The paper proposes new key concepts and terminologies to be the microfoundations of Islamic economics as a discipline. It is a new approach in understanding behavior of individual and society in Islamic perspective which are different from the other approach, which modifies the conventional terminologies by adding "Islamic" prefix, such as "Islamic" utility or "Islamic" rationality.
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