The Role of Arabic in Islamic Financial Literacy Development In Indonesia

Abstract

Islamic financial literacy in Indonesia is rapidly increasing, as is the Islamic banking industry. Arabic is important in developing Islamic financial literacy because it is the primary language in Islamic legal texts and daily banking practices. The use of Arabic in Indonesia's Islamic banking industry serves as a communication tool and an important factor in the development of Islamic financial literacy. This study investigates how Arabic helps Indonesians understand and adhere to Sharia principles, particularly in Islamic banking. This study employs a qualitative methodology with a literature review approach to determine the impact of the Arabic language on Islamic banking practices. The main findings focused on the use of Arabic terms such as mudarabah, murabahah, and ijarah in Islamic banking documents, as well as challenges such as a lack of Arabic-speaking human resources in Islamic banking and customers' difficulty understanding these terms. The proposed solutions include increasing contextualized Arabic language training for Islamic banking employees and providing simple educational materials for customers. The study concludes that Arabic language proficiency is important in promoting Islamic financial literacy in Indonesia through the Islamic banking industry.