Islamic financial inclusion determinants in Indonesia: an ANP approach

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.