THE ROLE OF ISLAMIC BANKING LITERACY AND EASE OF USE ON ACHIEVING SUSTAINABLE DEVELOPMENT GOALS AND MAQASHID AL-SHARIAH IN INDONESIA

Abstract

The achievement of Sustainable Development Goals (SDGs) is a global priority, emphasizing the need for research in this area. This study investigates the impact of Islamic finance literacy and the ease of using Islamic banking on the realization of Maqashid al-Shariah in Indonesia. Additionally, the study explores how Maqashid al-Shariah acts as a mediator between Islamic finance literacy, the ease of using Islamic banking, and the attainment of SDGs. Furthermore, it examines the moderating role of institutional support in the relationship between Maqashid al-Shariah and SDGs.  Primary data was collected from Islamic banks, and Smart-PLS was used to analyze the relationships between the variables. The results revealed a positive relationship between Islamic finance literacy, ease of using Islamic banking, and the achievement of Maqashid al-Shariah, which in turn positively impacts the realization of SDGs. Moreover, Maqashid al-Shariah significantly mediates the effects of Islamic finance literacy and ease of using Islamic banking on SDGs. Institutional support was found to significantly moderate the link between Maqashid al-Shariah and SDGs. The findings offer valuable insights for policymakers in formulating strategies that leverage Islamic finance literacy and user-friendly Islamic banking practices to promote both Maqashid al-Shariah and SDG attainment.