Portraying the Islamic Wealth Management Practice among Middle Class Household in Yogyakarta: The Interplay Between Religion and Javanese Cultural Value
Martini Dwi Pusparini (a,b), Sulistya Rusgianto (a), Atika Zahra Maulida (c)

a) Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia, and
b) Department of Islamic Economics, Faculty of Islamic Studies, Universitas Islam Indonesia, Yogyakarta, Indonesia
c) Department of Islamic Economics, Faculty of Islamic Economics and Business, Universitas Islam Negeri (UIN) Antasari, Banjarmasin, Indonesia

Abstract

For Muslims, their identity isn^t solely confined to Islamic religious beliefs- it also encompasses how traditions, customs, and ^urf (cultural practices) impact their conduct, including financial management. This study aimed at elaborating the implementation of Islamic wealth management (IWM) within Middle-Class Muslim households in Yogyakarta. This paper conducted descriptive qualitative method and adopted an ethnographic approach to gain a comprehensive, in-depth understanding of the subject. The study encompassed all Muslim households in Yogyakarta Province, with purposive sampling method to select 23 Muslim households. The sample criteria include being Muslim, having income, falling within the income range of 1-6 million rupiah, and being born and residing in Yogyakarta. Data collection techniques included in-depth interviews, observation, and documentation. The research findings show that not all Muslim households engage in family financial planning. Only six respondents reported that they had conducted family financial planning, whereas the others acknowledged that they had not engaged in structured financial planning, even though some of them had saved money and given to charity, in addition to meeting their daily expenses. Besides, some Javanese value and beliefs are also Inherent within themselves, for example ^nerimo ing pandum^, ^Kegedhen Empyak kurang cagak^, ^gemi, nastiti, ngati-ati^. This philosophy of life is in line with Islamic teachings and is practiced in everyday life, including in financial management. Frugal living, saving and the habit of sharing are some of the values that characterize the financial management of Muslim households in Yogyakarta. However, this research further found that in millennial households, there is a shift in values and traditions which are influenced by modern lifestyles. The research findings also revealed that a significant portion of the population remains unfamiliar with Sharia-compliant financial services, such as Sharia banks and Islamic investments (such as Islamic stocks and sukuk). From a practical standpoint, this suggests an opportunity for Sharia financial institutions to promote financial literacy about Sharia-compliant options among the predominantly Muslim middle-class population in Indonesia. Meanwhile, from an academic standpoint, it provides insights into how societal culture and religion shape financial management practice. This research also has the potential to support the incorporation of cultural values into the framework of IWM.

Keywords: Javanese Value, Islamic Wealth Management, Muslim Household, Financial Planning

Topic: Islamic finance and banking