The Legal Protection of Sharia Financial Technology In Indonesia

Abstract

Financial technology (fintech) services have developed rapidly on the world including in Indonesia. The rapid development of fintech in Indonesia was responded positively by the existence of several regulations issued by the Financial Services Authority (OJK) and Bank Indonesia (BI). Besides conventional fintech, sharia fintech in Indonesia has also begun to develop where the Indonesian Ulema Council (MUI) has issued a fatwa on Sharia-Based Information Technology-Based Financing Services (Fatwa No.117 / DSN-MUI / IX / 2018). Although sharia fintech has begun to develop, OJK has not accommodated the MUI Fatwa to be a binding regulation. This will give an impact on legal uncertainty regarding supervising of sharia fintech. Ironically, both conventional and sharia fintech become a tool of crime related to the misused of consumer personal data unlawfully. To answer the problem, the methodology used of this article is juridical-normative with qualitative approach. The result of this study is although there are some regulations both conventional and sharia fintech, there are still violations of the law that harm consumers such as approval, supervision, law enforcement including violation of consumer personal data and the culture. Those have an impact on legal uncertainty for consumers because there is no legal protection provided by the state.