Pappaseng Values and Islamic Financial Literacy in Relation to Financial Inclusion among the Bugis Community
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Abstract
Existing studies have not established whether an understanding of a specific indigenous ethical tradition contributes to Islamic financial inclusion beyond the role of financial literacy. This study addresses this gap by examining the relationship between Pappaseng values, Islamic financial literacy, and Islamic financial inclusion among members of the Bugis community and by developing an educational proposal based on the findings. This study employed a quantitatively oriented mixed-methods approach, combining an online survey of 157 respondents from Makassar, Gowa, and Maros with interviews and observations. The qualitative findings were integrated with the quantitative results to provide a more comprehensive interpretation. The mean scores for Islamic financial literacy, understanding of Pappaseng values, and Islamic financial inclusion were 3.72, 3.35, and 3.28, respectively, on a five-point scale. The corresponding Cronbach's alpha values were 0.88, 0.81, and 0.79, indicating acceptable internal consistency. The reported regression coefficients showed positive associations between Islamic financial literacy and Islamic financial inclusion (0.46; p < 0.001), as well as between understanding of Pappaseng values and Islamic financial inclusion (0.29; p = 0.004), with an R² value of 0.42. However, the coefficient types and precision estimates were not fully documented. Qualitative findings indicated that values of honesty, responsibility, prudence, and solidarity were associated with financial decision-making, while also revealing limited knowledge of Islamic financial contracts and the continued use of informal financial services. This study distinguishes technical financial capabilities from the moral and relational dimensions of financial participation. Trust may facilitate participation in both formal and informal financial arrangements, making the direction of this relationship important for interpretation. However, trust and social capital were not measured as separate mediating constructs. The proposed educational model was developed based on the research findings and formative consultations rather than an evaluated intervention.
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