| By: |
Novat Pugo Sambodo (Lecturer of Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada);
Riswanti Budi Sekaringsih (Lecturer of Faculty of Islamic Economics and Business, State Islamic University (UIN) Sunan Kalijaga Yogyakarta, and Research Associate at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada);
Meikha Azzani (Research Associate at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada);
Esa Azali Asyahid (Academic Assistant of Department of Economics and General Assistant at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada);
Maulana Ryan Nurfahdhila (Student of Department of Economics and Research Assistant at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: |
This study empirically examines the determinants of financial inclusion among
Indonesian Muslims using individual-level panel data. We investigated
financial inclusion indicators such as borrowing from financial institutions,
bank account ownership, the borrowed amount, and savings in financial
services. We analysed data from the Indonesian Family Life Survey (IFLS)
fourth (2007) and fifth (2014) waves, offering a comprehensive dataset with
unique socio-economic variables. We used Ordinary Least Squares and Logit
estimations to identify factors influencing individuals' access to financial
services and the average borrowed amount. Our findings indicate that urban
residents with higher wealth, predominantly males, have better access to
financial services. Banks remain the primary source for loans among Indonesian
Muslims. Access to commercial banks significantly impacts loan accessibility.
Notably, Baitul Maal WatTamwil (BMT), an Islamic microfinance institution,
enhances the probability of Indonesian Muslims accessing formal loans. |
| Keywords: |
Financial Inclusion, Islamic Finance, Household, Muslim, Indonesia |
| JEL: |
G51 Z12 |
| Date: |
2023–12 |
| URL: |
http://d.repec.org/n?u=RePEc:gme:wpaper:202312013&r=isf |