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The Effect of Religiosity and Sharia Financial Literacy Towards The Usage of Sharia Investments

Muhammad Haikal Hafis, Mandra Lazuardi Kitri

Abstract


Abstract. Investment is one of the muamalah activities that aims to increase the value of assets owned at this time which will be used for future interests. As a country that has the most Muslim population in the world the Indonesian government has seriously worked on a system where Muslim communities can invest comfortably, but this is contrary to the facts in the field. The level of inclusion of Islamic investment products is still very low, and the managed funds of Indonesian Sharia investments are still far behind Malaysia and Saudi Arabia, which have fewer Muslim populations than Indonesia. In view of this, the potential use of Sharia investment in increasing its market share is still large and wide open considering that the Muslim population in Indonesia is the largest in the world. There are many factors that influence the use of a product, especially investment. This study aims to determine whether the level of community religiosity and the level of Islamic financial literacy influence the use of Islamic investment products. This study uses a quantitative approach involving 429 respondents from the Indonesian muslim population. The sampling technique in this study used Purposive Sampling Technique. This research is based on primary data in the form of a questionnaire filled in by all respondents involved. Data analysis method uses Binary Logistic Regression analysis. Research divided into 5 model where the dependant variable is dummy variable. Whereas in testing the instrument variable this study uses validity test, reliability test. And for the hypotheses testing author using Binary Logistic Regression with Hosmer and Lemeshow, F-Test, Wald Test, and Nagelkerke R2 test as the tools. The result of this research is religiosity variable is not significantly affecting the usage of sharia investment, but sharia financial literacy significantly affecting the usage of sharia investment.

Keywords: Religiosity; Financial Literacy; Sharia; Investments; Sharia Investments; Bonds; Mutual Funds; S


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