Social Demographic Determinants Of Sharia Investment Decisions: The Mediating Role Of Latent Behavioral Factors

The growing public interest in Sharia-based investments in Indonesia has not been fully accompanied by an improvement in the quality of individual decision-making. This study aims to analyze the influence of socio-demographic factors—gender, age, income, occupation, asset ownership, and marital status—on Sharia investment decisions, by incorporating financial literacy, religious values, and trust in the Sharia financial system as mediating variables. A quantitative approach was employed, involving 343 respondents in DKI Jakarta through an online survey, and the data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The findings reveal that all demographic factors significantly affect Sharia investment decisions, with income identified as the strongest determinant. All three mediating variables also demonstrate positive effects, with trust in the Sharia financial system emerging as the most dominant mediator. Overall, the combination of demographic factors and mediators explains 76.2% of the variance in investment decisions, indicating the strong role of cognitive, spiritual, and psychological dimensions in shaping Sharia investment behavior. These results highlight the importance of strengthening Sharia financial literacy, enhancing public trust, and reinforcing religious values to improve the quality of Sharia investment decision-making in Indonesia.