Economics & Commerce
DOI: 10.18510/hssr.2020.845
Submitted: 2020-05-20
Published: 2020-07-04

EXPLORING ATTITUDES AND EXPECTATIONS OF INDONESIAN MUSLIM: A CASE OF UNTAPPED MARKET OF ISLAMIC PENSION FUND

Accounting Department, Universitas Islam Indonesia
Accounting Department, Universitas Islam Indonesia
Ministry of Law and Human Rights, Indonesia
Islamic Pension Fund Attitude Expectation Islamic finance

Abstract

Purpose of the study: This study aims to examine the factors of why the Muslim population is not having Islamic pension funds and to explore their expectation toward Islamic pension funds to make it a promising market in the near future.

Methodology: This study used a quantitative method with primary data through questionnaires distributed to 163 samples of the Muslim population in Indonesia. The Pearson correlation coefficient test is used to indicate normality and linearity. Meanwhile, the Kruskal Wallis test and two-tailed independent group t-tests are used to examine the hypotheses.

Main Findings: It is found that the low level of knowledge and trust toward Islamic pension funds are the two main reasons for not having Islamic pension funds. Meanwhile, the main society’s expectation is to have the allowance from the government and simple administrative procedures by having an automatic enrolment set by the government. In addition to that, female and higher income group is found to have a better attitude and expectation toward Islamic pension fund.

Applications of this study: The study provides a descriptive picture for the Islamic pension fund provider and government to set a product based on the Muslim attitude and expectation.

Novelty/Originality of this study: As far as we are concerned, there is only a small number of research on analyzing the demand of Islamic Pension Fund particularly in the largest Muslim population, this work is an attempt to fill in this gap.

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