The role of the national Sharia economic and finance commission (KNEKS) in improving financial literacy and investment in the Sharia Capital Market

Abstract

The level of financial literacy in Indonesia is still relatively low; there still are many people not familiar with investing in the Islamic capital market. Lack of financial literacy and investment is still one of the challenges in developing the Islamic economy and finance. The distribution is not carried out evenly to various regions in Indonesia in an educative and informative manner. This lack of literacy skills is shown by how well the Indonesian people understand Islamic financial and investment products. On the other hand, over time, the number of Islamic capital market investors has grown very rapidly from year to year, making it a popular investment choice for Muslim and non-Muslim investors in Indonesia. The growth rate of financial literacy and Sharia investment in Indonesian society cannot be separated from several roles of KNEKS in it. Therefore, this study aims to examine the role and progress of KNEKS in improving financial literacy and investment in the Islamic capital market with descriptive qualitative methods. The data collection technique used is the documentation method. The source of data in this study is secondary data obtained from the website of the agency tasked with supervising, accelerating, expanding, and advancing the development of Islamic economics and finance to support national economic resilience, namely KNEKS (National Commission on Sharia Economy and Finance). The results of this study indicate that KNEKS has many roles in increasing the financial literacy of Muslim millennial. One of them is by outlining the material phases of socialization of financial literacy and Sharia investment in every stage of people's lives. The mapping in the material socialization phase, it will facilitate the understanding of the community according to the age range in the category of thinking and understanding.