Introduction:
Adopting Islamic banking services in Indonesia is driven by factors such as Sharia compliance and convenience. This research explores how these two factors influence consumer decisions to adopt Islamic banking over conventional banking options. Understanding the underlying motivations for Islamic banking adoption can have significant implications for policy-making and financial inclusion, which aligns with several Sustainable Development Goals (SDGs), particularly those related to poverty alleviation, economic growth, and job creation.
Zero Hunger:
While the direct link between Islamic banking adoption and the “Zero Hunger” goal may not be immediately obvious, there are indirect connections. Islamic banking, particularly through its principles of fairness, risk-sharing, and ethical finance, can encourage the development of sustainable agricultural financing models and social welfare programs, such as interest-free loans (Qard al-Hasan) that support small-scale farmers and food production. By fostering financial inclusion, Islamic banks can provide access to capital for marginalized populations, thus contributing to food security and sustainable agricultural practices in Indonesia, where rural communities play a vital role in ensuring food availability.
Decent Work and Economic Growth:
The adoption of Islamic banking in Indonesia, driven by convenience and Sharia compliance, can foster economic growth and create decent work opportunities. By supporting the growth of small and medium-sized enterprises (SMEs) through ethical financing models like Mudarabah and Musharakah, Islamic banks can contribute to job creation and economic development. As the sector expands, it can provide employment opportunities in both financial services and related industries. Moreover, the alignment with Sharia principles ensures that business practices are grounded in social responsibility, ethical standards, and fair labor practices, further promoting inclusive economic growth and decent work.
Conclusion:
In conclusion, understanding what motivates the adoption of Islamic banking services in Indonesia not only offers insights into consumer behavior but also has important implications for achieving SDGs. By promoting financial inclusion, fostering sustainable agricultural practices, and contributing to economic growth, Islamic banking can play a key role in reducing poverty and ensuring decent work opportunities. This research aligns with global goals to create a more equitable, inclusive, and sustainable world. [Red. Raeef]