The Connection between Islamic Financial Literacy, Religiosity, and Subsidized Housing Purchase Decisions

Indonesia

Abstract

Meeting the housing needs for Low-Income Communities (MBR) remains a strategic challenge in Indonesia, particularly with the updated regulations under Permen PUPR No. 5 of 2025. In Polewali Mandar Regency, despite the availability of Sharia KPR schemes, there is a notable gap between Islamic financial literacy levels and financial inclusion. This study aims to analyze the influence of Islamic financial literacy and religiosity on customer decisions in choosing subsidized housing at Villamas Housing, Polewali Mandar.

The research method employed is quantitative associative causal. Data were collected through questionnaires with a Likert scale from 71 respondents, selected using simple random sampling based on the Slovin formula. Data analysis involved instrument testing (validity and reliability) as well as partial and simultaneous hypothesis testing. The results show that partially, Islamic financial literacy has a positive and significant influence on customer decisions ((T_count 3,767 > T_table 1,995; sig. 0,01). exerts a more dominant positive and significant influence ((T_count 4,226 > T_table 1,995; sig. 0,000). Simultaneously, both variables significantly influence customer decisions ((F_count 7,66 > F_table 3,13) with an R Square value of 0.183. This indicates that Islamic Financial Literacy and Religiosity contribute 18.3% to the determination of subsidized housing selection decisions, while the remainder is influenced by other factors outside this research model. These findings emphasize the importance of strengthening Islamic financial education and spiritual-value approaches to increase subsidized housing inclusion for the community.