Bridging Financial Knowledge and Investment Decisions: Insights from FEBI IAIN Ponorogo Students

Introduction: The participation rate in Indonesia’s capital market remains low, with only 0.4% of the population actively investing. As part of the younger generation, students represent a promising demographic to shift this trend through improved investment literacy. This study focuses on students at the Faculty of Islamic Economics and Business (FEBI), IAIN Ponorogo, to assess the factors influencing their investment interest. Research Methods: This research employed a quantitative approach, using questionnaires to collect primary data from 212 fifth-semester students during the 2018/2019 academic year. Multiple linear regression analysis was used to examine the influence of two independent variables—investment knowledge and minimum investment policies—on the dependent variable, investment interest. Results: Findings indicate that investment knowledge has a positive and significant impact on students’ investment interest. In contrast, minimum investment policies do not significantly influence interest. However, when analyzed together, both variables significantly affect investment interest. Conclusion: It suggests that capital market authorities and educational institutions should intensify efforts to improve financial literacy and promote student engagement in capital markets.