Effects of Islamic Financial Literacy, Financial Inclusion, Motivation, and Disposable Income on Investment by Millenials in Islamic Capital Market

Abstract

The purpose of this study was to determine the effect of the level of Islamic financial literacy, financial inclusion, motivation, and disposable income on the interest of Jakarta's millennial generation in investing in the Islamic capital market. The population in this study is people who live in DKI Jakarta, with an age range of 21-39. This study uses the Slovin formula to determine the number of samples and shows that a minimum of 100 respondents is needed. The data analysis technique used is Structural Equation Model-Partial Least Square (SEM-PLS) with the help of SmartPLS3 software. Based on the results of the analysis of this study, it was found that the variables of financial inclusion and motivation had a positive and significant effect on investment interest in the Islamic capital market. While the variables of Islamic financial literacy and disposable income have no significant effect on investment interest in the Islamic capital market.