Demand for Islamic Pension Funds in Indonesia: An Exploratory Study
- DOI
- 10.2991/icbmr-17.2017.44How to use a DOI?
- Keywords
- Islamic pension fund; demand for Islamic financial product; halal purchase intention; consumer behavior; Islamic economics and finance
- Abstract
Pension fund is a financial sector that provides a range of benefits, not only to the participants but also to the country's economy. This applies to both conventional and Islamic pension funds. In Indonesia, although Islamic pension fund has not grown as fast as other Islamic financial sectors, many believe that the majority of Indonesian people actually interested in participating in Islamic pension plan. Therefore, the main purpose of the study is to explore and determine the preference/demand for Islamic pension funds in Indonesia. With this perspective, a survey was conducted in six major cities in Indonesia: Jakarta, Bandung, Surabaya, Makassar, Medan and Balikpapan, and involved 200 respondents. Halal purchase intention framework and exploratory factor analysis are employed to analyze the primary data obtained. Based on the findings, more than 70% of the respondents are interested to have an Islamic pension plan. Thus, demand for Islamic pension fund is relatively high in Indonesia. Further analysis also suggests that marketing and religiosity are the main determinants for purchasing or joining the Islamic pension plan schemes. Authorities and market players should therefore consider these factors in their strategy to accelerate demand and development of Islamic Pension Funds in the country.
- Copyright
- © 2017, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Rahmatina Awaliah Kasri AU - Banu M Haidlir AU - Mohammad Amin AU - Muhammad Budi Prasetyo PY - 2017/11 DA - 2017/11 TI - Demand for Islamic Pension Funds in Indonesia: An Exploratory Study BT - Proceedings of the International Conference on Business and Management Research (ICBMR 2017) PB - Atlantis Press SP - 479 EP - 489 SN - 2352-5428 UR - https://doi.org/10.2991/icbmr-17.2017.44 DO - 10.2991/icbmr-17.2017.44 ID - Kasri2017/11 ER -