Reconstruction of the islamic human development index in Indonesia through principal component analysis (PCA)

Arsyad, Maulana Kamal, Supriyanto, Achmad Sani ORCID: https://orcid.org/0000-0003-1519-3258 and Ekowati, Vivin Maharani ORCID: https://orcid.org/0000-0001-6013-0630 (2025) Reconstruction of the islamic human development index in Indonesia through principal component analysis (PCA). Indonesian Journal of Islamic Economics Research, 7 (2). pp. 146-161. ISSN 2714-5751

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Abstract

This study examines the construct validity of the Islamic Human
Development Index (IHDI) indicators proposed by Anto (2011) and Rama
and Yusuf (2019) in the context of Indonesia’s human development. Using
Principal Component Analysis (PCA) and secondary data from 34
provinces in 2024, the study finds that two indicators the zakat to GRDP
ratio and the Gini ratio were excluded due to high regional variability. Four principal components emerged, representing socio-religious aspects, quality of life, economic welfare, and social mobility, explaining 75.72% of the variance. The findings reveal that human development in Indonesia emphasizes spiritual, social, and economic balance but lacks full alignment with maqāṣid al-sharī‘ah principles of equity and justice. Zakat, despite being a key Islamic economic pillar, remains empirically weak due to institutional and data limitations, highlighting the need to strengthen zakat
governance for effective redistribution and welfare enhancement

Item Type:	Journal Article
Keywords:	Islamic Human Development Index, Maqashid-Syariah, social welfare, Zakat
Subjects:	14 ECONOMICS > 1401 Economic Theory > 140104 Microeconomic Theory 14 ECONOMICS > 1401 Economic Theory > 140199 Economic Theory not elsewhere classified 14 ECONOMICS > 1402 Applied Economics > 140205 Environment and Resource Economics 14 ECONOMICS > 1402 Applied Economics > 140219 Welfare Economics 14 ECONOMICS > 1403 Econometrics > 140304 Panel Data Analysis
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Vivin Maharani Ekowati
Date Deposited:	10 Jul 2026 16:04

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