Purpose This paper aims to elaborate the reasons why Indonesia needs Law on Fintech. This paper also identifies the flaws in the existing regulations and policies on Fintech, and it also proposes an ideal framework for a fintech law as a strategy to strengthen consumer protection and to accelerate the growth of the digital economy in Indonesia. Design/methodology/approach This is normative research with a legal approach. Data were collected through a literature study and analyzed using legal norm method. Findings The promising potential and growth of the fintech industry in Indonesia need to be supported by a sound legal framework in the form of Indonesian Law. In regards to fintech, Indonesia does not yet have a specific law on fintech. Existing regulations in the Bank of Indonesia Regulations (PBI) and Indonesia Financial Services Authority Regulations (POJK) only regulate the technical aspects of the industry, thus providing a less sound legal power. Bank of Indonesia (BI) and Indonesia Financial Services Authority (OJK) have limited authority in the making of regulations and the regulations produced by these institutions cannot stipulate criminal provisions. This results in inadequate consumer protection measures. The Investment Alert Task Force reported 2,018 illegal P2P lending, 472 illegal investment companies and 69 illegal pawnbrokers. The accumulation of online lending transactions in December 2019 reached a total of IDR81.50tn, seeing a 259.56% increase from the previous year. Meanwhile, the amount of bad debt reached IDR13.6tn, seeing a 169.48% increase. These reasons illustrate how urgently Indonesia needs Fintech Law. Research limitations/implications This research only examines the existing Fintech regulations in Indonesia. The approach method used is normative legal research. Practical implications This research is expected to be useful for The House of Representatives of the Republic of Indonesia (DPR), the Ministry of Law and Human Rights, the Indonesia Financial Services Authority (OJK) and Bank of Indonesia (BI) in drafting the Fintech Law. Social implications This research is expected to increase protection for consumers, investors and providers of fintech services and accelerate the growth of the digital economy in Indonesia. Originality/value Regulating fintech in the Indonesian Law is meant to give legal certainty and better legal protection for consumers, investors and providers of fintech services. Seeing that the value of the Indonesian digital economy in 2019 has reached USD40bn (approximately IDR586tn), Indonesia is philosophically, juridically and sociologically in urgent need of Fintech Law.
Purpose This paper aims to explore the prospects and the challenges of Islamic fintech in Indonesia. This study also proposes a comprehensive legal framework to encourage and accelerate the growth of the Islamic economy. Design/methodology/approach This study is the result of legal research with a statute approach and conceptual approach. The types of data used are legal materials consisting of primary legal materials and secondary legal materials. The technique of collecting legal materials is done by using library research techniques. The legal materials were analyzed using the legal norm method. Findings Indonesia is a country with the largest Muslim population in the world. However, the market size of Indonesia’s Islamic fintech is still below Saudi Arabia, Iran, United Arab Emirates (UAE) and Malaysia. Saudi Arabia’s Islamic fintech is the biggest market in the world, with $17.9bn worth of transactions in 2020 while Iran is at $9.2bn, UAE $3.7bn, Malaysia $3.0bn and Indonesia $2.9bn. This condition was due to various challenges in the Islamic fintech industry in Indonesia, including inadequate regulations; complicated permit procedures; misuse of fintech for financing terrorism; rampant occurrence of illegal fintech businesses; and consumer disputes in the fintech sector. These challenges require the construction of a comprehensive legal framework through the formation of an Act on Fintech. Research limitations/implications The focus of this research was limited to the problems occurring in the Islamic fintech sector in Indonesia as a country with the largest Muslim population in the world. Practical implications The results of this research can be used as recommendations for the formulation of comprehensive policies for the growth and development of Islamic fintech. Social implications Islamic fintech requires a comprehensive legal framework that functions to encourage the development of the Islamic fintech industry, digital economy growth and legal mitigation of various legal risks and misuse of fintech for financial crime and financing terrorism. Originality/value This paper proposes an original idea of creating a legal framework in a form of the Islamic Fintech Act. The Act should cover such legal substances as follows: Islamic compliance; an integrated one-stop permit procedure; division of authority, coordination and synergy among authorities; prevention and resolution of digital financial system crisis; criminal sanctions; and consumer dispute resolution mechanisms and alternative institution for fintech consumer dispute resolution.
<p align="justify"><span lang="EN-US">Masalah perizinan menjadi salah satu masalah terkait investasi yang perlu dibenahi. Oleh karenanya, Pemerintah melalui <em>Omnibus Law </em>melakukan penyederhanaan perizinan. Salah satu bentuk penyederhanaan perizinan yaitu dengan penghapusan izin lingkungan. Upaya tersebut tentunya bertentangan dengan Tujuan Pembangunan Berkelanjutan. Disatu sisi, polusi dan kerusakan lingkungan masih menjadi salah satu masalah dan tantangan besar Indonesia yang belum bisa terselesaikan saat ini. Merespon permasalahan tersebut, penelitian ini berusaha untuk menganalisis korelasi antara izin lingkungan dengan tujuan pembangunan berkelanjutan. Artikel ini juga akan menganalisis mengapa subtansi izin lingkungan dalam <em>Omnibus Law </em>bertentangan dengan tujuan pembangunan berkelanjutan. Jenis penelitian ini adalah penelitian hukum normatif. Teknik pengumpulan data dilakukan dengan studi <em>literature </em>dan observasi dokumen. Teknik analisis yang digunakan adalah analisis yuridis kualitatif. Hasil penelitian menyimpulkan bahwa izin lingkungan adalah wujud integrasi antara dimensi sosial, ekonomi dan lingkungan dalam konteks Tujuan Pembangunan Berkelanjutan. <em>Omnibus Law</em> harus dapat menyederhanakan izin usaha dengan tetap memperhatikan lingkungan hidup. Penelitian ini merekomendasikan kepada Pemerintah untuk tetap menerapkan izin lingkungan dalam subtansi <em>Omnibus Law.</em> Di dalam <em>Omnibus Law </em>perlu dikonstruksikan proses perizinan lingkungan yang cepat, sederhana dan biaya yang memadai melalui rekonstruksi kelembagaan, konsistensi mekanisme penilaian izin lingkungan, dan penambahan Pejabat Pengawas Lingkungan Hidup Daerah (PPLHD).</span></p>
Purpose The purpose of this paper is two-fold: to explore the legal issue of the importance of personal data protection in the digital economy sector and to propose a legal framework for personal data protection as a consumer protection strategy and accelerate the digital economy. Design/methodology/approach This study is legal research. The research approach used was the comparative approach and statute approach. The legal materials used are all regulations regarding personal data protection that apply in Indonesia, Hong Kong and Malaysia. The technique of collecting legal materials is done by using library research techniques. Findings The value of Indonesia’s digital economy is the biggest in the Southeast Asia region, but data breach is still a big challenge to face. The Indonesian Consumers Foundation (Yayasan Lembaga Konsumen Indonesia) recorded 54 cases of a data breach in e-commerce, 27 cases in peer-to-peer lending and 5 cases in electronic money. Based on the results of a comparative study with Hong Kong and Malaysia, Indonesia has yet no specific Act that comprehensively regulates personal data protection. Indonesia also does not have a personal data protection commission. Criminal sanctions and civil claims related to data breaches have not yet been regulated. Research limitations/implications This study examines the data breach problem in the Indonesian digital economy sector. However, the legal construction of personal data protection regulations is built on the results of a comparative study with Hong Kong and Malaysia. Practical implications The results of this study can be useful for constructing the ideal regulation regarding the protection of personal data in the digital economy sector. Social implications The results of the recommendations in this study are expected to develop and strengthen the protection of personal data in the Indonesian digital economy sector. Besides aiming to prevent the misuse of personal data, the regulation aims to protect consumers and accelerate the growth of the digital economy. Originality/value Indonesia needs to create a personal data protection act. The act should at least cover such issues: personal data protection principles; types of personal data; management of personal data; mechanism of personal data protection and security; commission of personal data protection; transfers of personal data; resolution mechanism of personal data dispute and criminal sanctions and civil claims.
Purpose The purpose of this paper is two-fold: to analyze the legal issues on disgorgement and disgorgement funds in Indonesia, the USA and the UK and to construct the ideal law regarding disgorgement and disgorgement fund. Design/methodology/approach The type of legal research in this paper is normative legal research. The research approach used is a comparative approach and a legal approach. The legal materials used are all regulations on the disgorgement law and the disgorgement fund that apply in Indonesia, the USA and the UK. The technique of collecting legal materials is done by using library research techniques. Findings The rapid growth of the capital market in Indonesia still faces various legal issues such as various market manipulations, insider trading and illegal investment management activities. Based on the results of a comparative study, Indonesia does not yet have a calculation mechanism regarding the imposition of disgorgement on violators. Unlike Indonesia, the USA has the rules of practice and rules on fair funds and exchange commissions, and the UK has the decision procedure and penalties manual, which regulates the mechanism for calculating the imposition of disgorgement. Indonesia is solely able to use administrative action in imposing disgorgement, while in the USA and the UK, it can be through courts or direct administrative actions. These legal issues have resulted due to the lack of confidence by international investors and the growth of the investment climate in Indonesia itself. Research limitations/implications This study examines the regulation of disgorgement and disgorgement funds in Indonesia, the USA and the UK. However, the focus of research in this paper is limited to legal issues that occurred in Indonesia. Practical implications The results of this study may help to construct the ideal regulations on disgorgement and disgorgement funds in various countries and protect the capital market of the investors. Social implications The results of this study are expected to be helpful for the investment climate in various countries, especially developing countries. Originality/value The ideal legal construction regarding disgorgement, namely, parties to the mechanism for imposing disgorgement; disgorgement filing mechanism; sanctions in disgorgement; disgorgement fund sources; provider of fundholding accounts; mechanism for calculating disgorgement imposition; disgorgement fund distribution mechanism.
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