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Index Of Syariah Financial Inclusion In Indonesia

Author

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  • Azwar Iskandar Umar

    (Ministry of Finance of Indonesia)

Abstract

This paper calculates and analyzes the Index of Syariah Financial Inclusion (ISFI) covering three dimensions; the accessibility, the availability and the usage of Islamic banking services. Using the annual data in province level in Indonesia during the period of 2010-2015, this paper found that the Index of Syariah Financial Inclusion is generally low and Bangka Belitung is the most financially inclusive province of Indonesia. Furthermore, the results show that the Index of Syariah Financial Inclusion is positively correlated with the Human Development Index. This conclusion suggests the promotion of Syariah Financial Inclusion to be a policy priority in Indonesia to achieve the central goals of inclusive growth, welfare and economic development.

Suggested Citation

  • Azwar Iskandar Umar, 2017. "Index Of Syariah Financial Inclusion In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 20(1), pages 99-126, July.
  • Handle: RePEc:idn:journl:v:20:y:2017:i:1d:p:99-126
    DOI: https://doi.org/10.21098/bemp.v20i1.726
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    More about this item

    Keywords

    Financial Inclusion; Syariah; Welfare;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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