Promoting Financial Inclusion Through Financial Literacy, Socialization, and Commitment to the Implementation of Islamic Financial Institutions' Law in Aceh, Indonesia

Aiming to foster Islamic financial inclusion, this research explores how Islamic financial literacy, socialization, and commitment to adopting the Qanun have affected Islamic financial institutions in Aceh Province, Indonesia. The study's participants are residents from Aceh Province who have used Islamic Financial Institutions services. Using multi-stage random sampling, this study selected a sample of 100 clients from various Islamic Financial Institutions in Aceh Province who were at least 17 years old, and we gathered their responses to questionnaires. The partial least squares (PLS) model was used for the data analysis. The findings indicate that improving financial literacy among the Acehnese population positively influences financial inclusion. Enhanced financial literacy equips individuals with better knowledge of Islamic financial products and services, leading to increased adoption and utilization. Awareness and familiarity with Islamic finance are vital to increasing its accessibility and overcoming difficulties, and hence, effective socialization initiatives play a crucial role in doing so. Further, a commitment to Qanun implementation offers a legal foundation for Islamic financial institutions, which in turn encourages the growth of a variety of products and services and helps to expand financial inclusion in the area. Strengthening financial literacy, socialization, and regulatory commitment supports the growth of the Islamic finance sector and contributes to overall welfare improvement. Collaborative efforts among stakeholders are crucial for promoting financial literacy, enhancing socialization, and ensuring robust regulations, ultimately fostering greater Islamic financial inclusion and economic growth in Aceh Province, Indonesia.