Abstract
Sharia debt-based crowdfunding is experiencing good growth in Indonesia. Its existence as a financial service institution based on information technology carries high risks such as default risk, misuse of funds, the potential for shadow banking, personal data misuse, risk of Sharia compliance, and risk of consumer protection and dispute resolution. The purpose of this study is to find issues related to Sharia debt-based crowdfunding as a financial service institution that is subject to Sharia principles in crowdfunding regulations in Indonesia. This research is normative juridical research that uses secondary data as research material, including primary, secondary, and tertiary legal materials. The results show that no regulation specifically regulates Sharia debt-based crowdfunding in Indonesia. Financial Services Authority Regulation number 77/2016 as the legal basis for debt-based crowdfunding in Indonesia does not regulate Sharia debt-based crowdfunding as a financial service institution that is subject to Sharia principles and does not regulate legal protection for its consumers. Sharia debt-based crowdfunding must be regulated to protect consumers, both preventive and repressive protection as a manifestation of the rule of law principle adopted by Indonesia.
Highlights
IntroductionOn the asset side, in April 2021, total assets reached IDR 109.4 billion or has a market share of 2.57% of the total assets of the debt-based crowdfunding industry which reached IDR 4.23 trillion with outstanding financing that reached IDR 20.61 trillion [1]
Sharia debt-based crowdfunding or Islamic debt-based crowdfunding is one type of Islamic law-based crowdfunding that is growing rapidly in Indonesia
The owner of the project or company makes an offer in the form of a gift or other form of certain goods, services, or rights, and it is not possible to estimate the results or benefits derived from the project or company being funded. c) debt-based crowdfunding; This crowdfunding, known as crowd-lending, is a type of crowdfunding that is based on debt or loans
Summary
On the asset side, in April 2021, total assets reached IDR 109.4 billion or has a market share of 2.57% of the total assets of the debt-based crowdfunding industry which reached IDR 4.23 trillion with outstanding financing that reached IDR 20.61 trillion [1]. The growth and development of Sharia debt-based crowdfunding in Indonesia cannot be separated from the growth of Islamic fin-tech globally. DinarStandard and Elipses [2] in The Global Islamic Fin-Tech Report 2021 note that in 2020 the total Islamic fin-tech market from 57 member countries of the Organization of Islamic Cooperation will reach US$ 49 billion. The report places Indonesia in fourth place as a country experiencing rapid development in the field of Islamic fin-tech with a market size of US$ 2.9 billion and is estimated to reach US$ 8.3 billion by 2025. Several things are driving the growth of the global Islamic financial economy, including increasing the living standards of the Muslim population, developing national strategies for countries that are dedicated to halal products, and increasing Islamic ethics and values [3]
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