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Unlocking Inclusive Growth: The Impact of Shariah Investment in Indonesia

Jurnal SIGNIFIKAN Terakreditasi SINTA 2, Dimensions, CrossRef, Ulrich Periodical Database, Google Scholar, ISJD LIPI, Garuda, Moraref, etc.

Tanggal Publikasi: 1 Agt 2023


This study aims to examine the role of Shariah investment in inclusive growth in Indonesia. Shariah investment is measured through Shariah stocks and Sukuk. The study also adds several control variables adopted from separate literature, including the effect of the Covid-19 pandemic, as determinants of inclusive growth. Unlike previous studies, testing is employed using several different measurements of inclusive growth. Using principal component analysis (PCA) to measure the composite index of inclusive growth and time series regression models with monthly data at the national level throughout 2011-2022, this study produces several main findings. There is evidence that Shariah investment plays a role in inclusive growth in Indonesia, although the results are quite varied. Shariah stocks were found to play a significant role in reducing poverty and unemployment, while Sukuk played a role in reducing poverty and inequality. At the same time, both were able to promote the strengthening of the Human Development Index (HDI) and overall quality of inclusive growth. This study also found that the Covid-19 pandemic was significant in suppressing the performance of inclusive growth in Indonesia.


shariah investment, Shariah stocks, Sukuk, Covid-19, inclusive growth, Indonesia