The Effect of Sharia Financial Inclusion on Indonesian Economic Growth

Abstract

Financial Inclusion has a role to play in driving economic growth. This study aims to identify and analyze the influence of Islamic banking inclusion in driving economic growth. This study uses a descriptive quantitative method with a literature survey. The data used is secondary data from Sharia Banking Statistics obtained from OJK web and Indonesian Statistics from BPS Web with annual data series from 2011-2020. The results of the study found that together indicators of sharia banking inclusion statically affect economic growth. But when viewed partially, only accessibility indicators statistically have a positive effect on economic growth. Simultaneously, the indicator of usability, although statistically significant but not according to a thesis that has quality indicators, is statically proven to be independent of economic growth. This means that even if people can access sharia banking services, it does not necessarily increase economic growth that will have implications for the community's welfare.