Proceedings of the International Conference on Strategic and Global Studies (ICSGS 2024)

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The Optimal Role of Sharia Economics in Alleviating Social Inequality in Jabodetabek

(Survey Analysis and Structural Model Approach)

Authors
Kuncoro Hadi1, *, Nuraini Nuraini2
1Faculty of Economics and Business, Al Azhar University Indonesia, Jakarta, Indonesia
2Faculty of Medicine, Universitas Muhammadiyah Prof. Dr. Hamka, Tangerang, Indonesia
*Corresponding author. Email: kh.medina@gmail.com
Corresponding Author
Kuncoro Hadi
Available Online 31 January 2025.
DOI
10.2991/978-94-6463-646-8_38How to use a DOI?
Keywords
Islamic Economics; Social Gap; Zakat; Islamic Microfinance
Abstract

This study aims to analyze the role of Islamic economics in reducing social inequality in Jabodetabek using a structural model approach. Social inequality in the region as measured by the Gini Index shows a significant level of inequality, triggering serious challenges for social justice. Islamic economic principles such as zakat, the prohibition of usury, and Islamic microfinance are considered to have great potential in addressing such inequality. This study uses a quantitative survey method with 1031 respondents from Jabodetabek, and analyzes the relationship between people’s understanding, perceptions, and expectations of the role of Islamic economics with a structural equation model (SEM-PLS). The results show that people’s understanding and positive perceptions contribute significantly to high expectations of the role of Islamic economics in reducing social inequality, especially through zakat (29.3%) and Islamic microfinance (34.4%). This research provides practical and theoretical contributions by recommending strengthening Islamic financial literacy and optimizing zakat distribution as key strategies to improve social inequality in urban areas. Policy implications and further development recommendations are also presented to support a more effective implementation of Islamic economics.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Strategic and Global Studies (ICSGS 2024)
Series
Atlantis Highlights in Social Sciences, Education and Humanities
Publication Date
31 January 2025
ISBN
978-94-6463-646-8
ISSN
2667-128X
DOI
10.2991/978-94-6463-646-8_38How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kuncoro Hadi
AU  - Nuraini Nuraini
PY  - 2025
DA  - 2025/01/31
TI  - The Optimal Role of Sharia Economics in Alleviating Social Inequality in Jabodetabek
BT  - Proceedings of the International Conference on Strategic and Global Studies (ICSGS 2024)
PB  - Atlantis Press
SP  - 634
EP  - 658
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-646-8_38
DO  - 10.2991/978-94-6463-646-8_38
ID  - Hadi2025
ER  -