Authors:
Fiska Silvia Raden Roro
and
Abd Shomad
Affiliation:
Faculty of Law, Universitas Airlangga, Surabaya, East java and Indonesia, Indonesia
Keyword(s):
Maslahah Principle, Sharia, Financial Technology
Abstract:
The principle of maslahah is applied particularly in cases that have not been regulated by the Qur'an, the Sunnah (the teachings and practices by Prophet Muhammad), or qiyas (analogy method in Islamic jurisprudence). Maslahah is the concept in shari'ah (Islamic divine law) regarded as a basis of law. It forms a part of extended methodological principles of Islamic jurisprudence (usul fiqh). The application of the concept has increasingly become important since contemporary legal issues have arisen in the modern times. Sharia financial technology is one of the new legal issue in recent years. By focusing on profit-loss sharing principles Islamic financing has the potential to prompt more financing by small and medium sized enterprises (SMEs) to start their businesses. The adoption of sharia financial technology (hereinafter referred to as fintech) is in line with government initiatives working to address barriers to SME growth, such as limited access to financing or lack of sufficient
collateral for loans. The government believes Islamic finance will bring many benefits for both Muslims and non-Muslims due to it aims. There are several challenges and risks in the sharia financial technology industry. The legal problem in this article is that all fintech in Indonesia has only one door to entry, namely by registration through only one platform fintech transaction: lending service based on information technology. It has been enacted by the Financial Services Authority regulation (POJK) No. 77/POJK.01/2016. Vice versa, in Islamic law perspective, al-qardh (lending) is not categorized as a business transaction. Taking a profit in lending transactions is prohibited (haram). In fact, until June 10, 2018, the number of fintech listed on the the Financial Services Authority consisted of 63 conventional fintech and 1 sharia fintech (in the near future there will be four financial technology companies-based lendings that run the principles of sharia in the process of filing a registered permit).This fact means that sharia fintech companies candidate are inevitably forced have to register with the Financial Services Authority as lending service platforms. This article will analyze this legal problem under the maslahah principle. This principle indicates prohibition or permission of a thing or a deed according to necessity and particular circumstances, on the basis of whether it serves the public interest of the Muslim community (ummah). The concept is acknowledged and employed to varying degrees depending on the jurists and schools of Islamic jurisprudence.
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