IMPLEMENTATION OF THE FATWÁ OF INDONESIAN ULEMA COUNCIL ON SHARĪ’AH-COMPLIANT FINANCIAL TECHNOLOGY SERVICE PRODUCTS IN INDONESIA

Abstract

As the largest Muslim population in the world, Indonesia has the potential to become a leading Sharī’ah-compliant financial country. With the technological development in Information Technology, more IT financial service products are introduced to the Muslim market. One of them is peer-to-peer lending financial technology (fintech) service. Sharī’ah-compliant fintech company has been developed due to some factors, namely: the rise of middle-class Muslims, increasing Muslim awareness of Sharī’ah-compliant financial products, and increasing number of smartphone users in Indonesia. DSN-MUI fatwá no. 117/DSNMUI/II/2018 provides guidance on the implementation of information technologybased financing services based on Sharī’ah principles in Indonesia. This research aims to study the concept of fatwá and its implementation in Sharī’ah-compliant fintech product. In addition, this research also determines the problems and challenges of the fatwá implementation. Dana Syariah as one of the Sharī’ahcompliant fintech that has obtained an operational license by OJK, Dana Syariah uses wakkālah bil ujrah contracts and murābaḥah sale and purchase contract. According to the results of this study, the two contracts are in accordance and comply with the DSN-MUI fatwá no. 117/DSN-MUI /II/2018. However, this fatwá is not legally binding and cannot be enforced by law enforcement. While the operational and legality of fintech uses regulations from OJK. The challenge in implementing the fatwá is the differences of opinion among scholars regarding the concepts of qabḍu haqīqī (actual possession) and qabḍu ḥukmī (constructive possession) in murābaḥah contract.