DETERMINANTS OF PARTICIPANTS’ TRUST IN SHARIA BASED SOCIAL SECURITY FUND MANAGEMENT: EVIDENCE FROM BPJS KETENAGAKERJAAN

Abstract

The expansion of Islamic financial services in Indonesia has created growing demand for Sharia
compliant social security mechanisms, yet participation in such schemes remains limited. This study 
examines the determinants of participants' trust in Sharia-based social security fund management, 
with a focus on the Sharia Services implemented by BPJS Ketenagakerjaan. Grounded in Stakeholder 
Theory and the Islamic governance framework, this study investigates the influence of three 
governance dimensions Sharia principles, accountability, and transparency on participants' trust. A 
quantitative causal explanatory approach was employed, with data collected through structured 
questionnaires distributed to 432 purposively selected participants of BPJS Ketenagakerjaan in 
Indonesia. The instrument was operationalised using a five-point Likert scale, and data were analysed 
using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS. The findings 
indicate that Sharia principles, accountability, and transparency each have a positive and significant 
effect on participants' trust in Sharia-based social security fund management. These results suggest 
that governance quality particularly adherence to maqasid al-shariah, moral and institutional 
accountability, and openness in information disclosure serves as a critical mechanism for building 
participant confidence and sustaining long-term engagement. This study contributes to the Islamic 
governance literature by extending the discussion beyond banking institutions into the domain of 
public social security fund management, and offers practical guidance for policymakers and 
institutional managers seeking to strengthen trust and broaden participation in Sharia-based social 
protection programmes in Indonesia.