Indonesian low-income households’ acceptance of microtakaful in East Java

Rapi, Muh Zul Hazmi and Kassim, Salina (2023) Indonesian low-income households’ acceptance of microtakaful in East Java. Journal of Islamic Monetary Economics and Finance, 9 (4). pp. 637-660. ISSN 2460-6146 E-ISSN 2460-6618

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Abstract

This research investigates the inclination of economically disadvantaged households in East Java, Indonesia, towards microtakaful adoption, utilizing an extended Theory of Planned Behavior (TPB). Analyzing data from 304 respondents through online and face-to-face surveys, the study reveals a significant demand for microtakaful among low-income households. Behavioral intention is positively influenced by factors such as attitude, subjective norms, price, and knowledge, with price being the most critical determinant. Notably, a substantial number of respondents from low-income backgrounds express positive intention toward microtakaful. The study underscores the importance of microtakaful providers raising awareness, offering affordable structures, and highlighting microtakaful’s value as a risk management tool. By employing an advanced TPB model, this research offers profound insights into the perceptions and behavioral tendencies of East Java’s low-income households regarding microtakaful. The findings suggest actionable strategies for providers to enhance outreach and participation among this vulnerable group, contributing to improved financial inclusion and resilience.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Behavioral intention, Low income households, Microtakaful, TPB
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance H Social Sciences > HG Finance > HG8719 Islamic Insurance Takaful
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	17 Jan 2024 13:04
Last Modified:	17 Jan 2024 13:04
URI:	http://irep.iium.edu.my/id/eprint/110215

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