Sharia Economic Review Journal (SHACRAL)
Vol. 4 No. 2 (2026): Juni

THE ROLE OF ISLAMIC FINANCIAL INCLUSION IN ENHANCING SOCIAL WELFARE AND REDUCING ECONOMIC INEQUALITY IN INDONESIA: A LITERATURE REVIEW

RIFKI FAUZI (IPB University)
Noviana Aulia (IPB University)
Midza Safiyra Zahra (IPB University)
Khairunnisa Putri Liestiyanto (IPB University)
Muhammad Ghaly Mumtaz (IPB University)



Article Info

Publish Date
21 Jul 2026

Abstract

Economic inequality remains a significant challenge in Indonesia despite various developmental efforts. This study aims to examine the role of Islamic financial inclusion in improving community welfare and reducing economic disparity. Using a systematic literature review approach, this paper analyzes data and existing research from the Financial Services Authority (OJK), Bank Indonesia (BI), and Central Bureau of Statistics (BPS), alongside scholarly articles. The findings indicate that Islamic financial inclusion, driven by the expansion of Islamic banking and Sharia fintech, provides equitable access to capital, particularly for Micro, Small, and Medium Enterprises (MSMEs). By adhering to the principles of Maqashid Sharia and distributive justice, Islamic financial inclusion not only mitigates poverty but also fosters sustainable economic empowerment. The study concludes that collaborative stakeholder strategies are essential to accelerate Sharia financial literacy and inclusion, ultimately driving broader national economic welfare

Copyrights © 2026






Journal Info

Abbrev

SHACRAL

Publisher

Subject

Economics, Econometrics & Finance

Description

Sharia Economic Review Journal | ISSN (e): 3046-8221 is a scientific journal that focuses on providing insight into how sharia economic principles can be integrated effectively in an ever-changing global economic environment. In addition, the author evaluates new opportunities that arise for the ...