ISLAMIC ECONOMIC DEVELOPMENT IN INDONESIA THROUGH THE IMPLEMENTATION OF SHARIA FINTECH

JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi) Vol. 6 No. 3, 2022 ISLAMIC ECONOMIC DEVELOPMENT IN INDONESIA THROUGH THE IMPLEMENTATION OF SHARIA FINTECH Muchlis Bahar UIN Imam Bonjol Padang Email : ABSTRACT The existence of technological developments strongly influences community life in Indonesia. On the economic side, the presence of sharia fintech will make it easier for the Indonesian people to have funds in emergencies easily and quickly. The purpose of carrying out this research is to be able to analyze how the development of sharia fintech in terms of Islamic economic law in Indonesia. This research will be conducted utilizing a qualitative methodology. The data used in this study originated from a variety of stillrelevant prior studies. The conclusion that has been found in this study is that Islamic economic law has a developmental position that is parallel to other conventional economic laws. As for the implementation of sharia fintech, there are conveniences that borrowers will accept, such as no need to meet face to face and easy fulfillment of financial requirements following Islamic economic law. Keywords : Sharia Fintech; Development; Islamic Economy INTRODUCTION Indonesia is a legal state that has great attention to economic growth. This can be seen in Article 33 of the 1945 Constitution of the Republic of Indonesia “The national economy is organized based on economic democracy with the principles of togetherness, sustainable efficiency, environmental insight, independence, and by maintaining a balance of will and national economic unity”. These provisions show the ideals of the Indonesian people in the economic field (Hartati, 2021). The economic growth of a nation requires a directed and integrated system of economic regulation, which is then utilized to improve the people’s welfare. Financial institutions work together to manage and mobilize all economic potentials so that they are empowered to be more optimally successful. Indonesia is the country with the world's largest Muslim population (Surya et al., 2021). It is possible that Indonesia may surpass all other countries in terms of the value of its Islamic economic assets. With the emergence and spread of Islam over the globe comes a sharia-based economic system. When the Prophet Muhammad arrived in Mecca, economic operations had not yet begun because he was preoccupied with his monotheistic beliefs. He is most remembered as a proponent of a new religion who faced formidable opposition from the Quraysh and other Meccans. P-ISSN; 2541-5255 E-ISSN: 2621-5306 | Page 761 JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi) Vol. 6 No. 3, 2022 Islamic economics has been studied for a very long time. Since the majority of its concepts come from the Qur'an and the Hadith, Islamic economics can be thought of as both a social science and a system. The existence of a capitalist financial system is not what gives rise to a capitalist economic system. Economics in accordance with Islamic principles. Traditional Islamic law in Indonesia is a community-based, evolving body of law. To paraphrase Soerjono Soekanto, a state in which the law and people's ideals are in harmony is the most ideal. Consequently, Islamic law cannot be divorced from Indonesian culture (Cunha et al., 2021). Public enthusiasm for the expansion of sharia economic practices is quite high, particularly in light of the emergence of Islamic financial institutions (LKS), of which sharia fintech is one example. Using technological advancements, sharia fintech is an innovation of sharia-compliant financial services. In addition to providing unconventional offers and schemes, it imposes some restrictions on the use of funds provided by investors or lenders (Pati et al., 2021). The ease provided by sharia-based fintech cannot be isolated from the qualities of sharia enterprises that rely on sharia economic underpinnings, including divinity (ilahiah), justice (al-adl), prophethood (an nubuwah), government (al caliphate), and outcomes (al maad). Article 1, number 3 of Financial Services Authority Regulation 77/POJK.01/2016 defines Information Technology-Based Lending and Borrowing Services as the provision of financial services to bring together lenders and loan recipients to enter into lending and borrowing agreements in rupiah currency directly through an electronic system utilizing the internet network (Trimulato et al., 2022). Along with the development of fintech that the Indonesian people have accepted, several crucial questions have emerged in efforts to develop sharia fintech to improve the Indonesian economy, namely the concept of financial services in sharia fintech and its legal relationship considering the principles used are sharia-based which are very different from conventional fintech (Kharisma, 2020). The incorporation of Islamic principles (sharia economics) into the ideals of Indonesian economic law gives it a solid syar'i and constitutional basis for its survival. Formally known as syar'i, the presence of sharia economics has a solid argumentative foundation. In the context of the state, Islamic economics is grounded in the constitution (Budiono et al., 2022). P-ISSN; 2541-5255 E-ISSN: 2621-5306 | Page 762 JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi) Vol. 6 No. 3, 2022 In addition to western and customary law, Islamic law is a source of national law. Nonetheless, this does not imply that Islamic law must assume the exclusive form of formal regulation, other than its inherent inclination to assist (rather than coerce) people who have relied on it in everyday life. In addition, Islamic law has existed in Indonesia for a very long time, both normatively sociologically and formally legally (Pratama et al., 2019). Islamic legal legislation is situated in the context of the needs of Muslims themselves in the context of implementing Islamic education in a kaffah (proper) manner, even if the development of national law based on sharia teachings cannot be divorced from the framework of federal law (Riyanti, 2021). Since most Indonesian citizens are Muslim, research on the economy is critical, especially in the field of sharia finance, one of which is sharia fintech which has begun to be favored by the public considering the easy access to fintech (Berakon et al., 2021). Based on the description above, the author is interested in discussing the Development of Islamic Economic Law in Indonesia. Studies on Sharia Fintech will later show Indonesia’s Islamic economy’s development. LITERATURE REVIEW Islamic Economics Economics studies human behavior using scarce resources to produce goods and services that humans need. Meanwhile, Islam regulates human life in this world and hereafter. Thus the economy is a part of religion (Islam) because it is part of human life that comes from the Qur’an and al-Sunnah. This absolute position of the source makes Islam a special religion compared to other reli (...truncated)