Quantifying the Effect of Religion on Rural Development in Indonesia Using the Rural Islamic Religiosity Index: A Case Study in West Sumatera Province

Abstract

The role of religion in development is crucial for implementing policies that aim to achieve sustainable development goals. This study seeks to quantify the role of religion in rural development. The research was conducted across 802 villages in West Sumatra Province, Indonesia, drawing on data from the 2018 Village Potential Statistics. Firstly, the study constructed a Rural Islamic Religiosity Index measurement, adopting the Alkire-Foster method. This newly developed index serves as a composite indicator of worship, education, economy, and social dimensions. The study then employed the Ordinary Least Squares (OLS) method for estimation. The assembled index serves as the independent variable while the Village Development Index, encompassing three dimensions, acts as the dependent variable. The results indicate that religion exerts a positive and significant influence on rural development broadly, particularly on economic and social aspects of rural development. However, the impact of religion on rural ecological development is subject to debate. The study recommends prioritizing spiritual development by enhancing religious understanding in integrated rural development activities, increasing the role of religious organizations in rural development planning, and building the capacity of these organizations.