Evaluating Public Views On Factors Affecting Islamic Financial Literacy Using Rasch Model (Evidence From Indonesia)

This study examines how religiosity, hopelessness, and financial satisfaction affect Islamic financial literacy in Indonesia. The Rasch model was used to analyze questionnaire data from 342 participants with different educational backgrounds. The data were sorted to ensure appropriate data quality. In this paper, we argue that education and social status affect Islamic financial knowledge. We found that religion and financial satisfaction increase Islamic financial knowledge, while hopelessness decreases it. This paper discusses Islamic financial literacy issues and social impacts that may interest the Indonesian halal industry. To achieve the best quality, it is essential to follow up. The authors recommend appropriate actions for future studies to address hopelessness and socioeconomic injustice related to Islamic financial literacy. This paper discusses the results of a study that used a questionnaire modified from previous work on Islamic financial literacy. The results of the study, which can be used to promote halal business in Indonesia, show how hopelessness, financial satisfaction, and religion can affect Islamic financial literacy. By providing information that can be applied as solutions, this article aims to contribute to the development of the Islamic industry sector in Indonesia.