Digital Transformation and Inclusion Islamic Finance in Indonesia: A Mixed Methods Approach through Secondary Data Analysis and Literature Review 2020 – 2025

Abstract

This study aims to analyze the relationship between digital transformation and financial inclusion in the context of Islamic finance. This study uses a mixed methods approach . methods ) that combine quantitative analysis of secondary data and qualitative content analysis of various strategic documents. Quantitative data were obtained from official sources such as Bank Indonesia, the Financial Services Authority (OJK), the Islamic Financial Services Board (IFSB), and the World Bank Global Findex. The database covers the period 2020–2025. This study uses the Digital Adoption Index (DAI) and the Islamic Financial Inclusion Index (IFII) to measure the empirical correlation between digital adoption and the level of Islamic financial inclusion. Meanwhile, a qualitative analysis was conducted on halal fintech innovation reports , Islamic financial digitalization policies, and recent academic publications to identify regulatory challenges, technological readiness, and public trust. The results show that digital transformation plays a significant role in expanding Islamic financial inclusion, although obstacles related to regulatory harmonization and the digital literacy gap remain key issues. The integration of both analyses confirms that the sustainability of Islamic financial digitalization requires a balance between technological innovation, sharia compliance, and harmonious and ethical regulatory governance.