Urgency of financial technology (Fintech) laws in Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dona Budi Kharisma
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Task Force ◽  
Legal Protection ◽  
Legal Framework ◽  
Digital Economy ◽  
Literature Study ◽  
Protection Measures ◽  
Content Type ◽  
The Republic

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.

Consumer protection and electronic commerce in the Sultanate of Oman

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rakesh Belwal ◽  
Rahima Al Shibli ◽  
Shweta Belwal
Keyword(s):  
Electronic Commerce ◽  
Consumer Protection ◽  
Research Process ◽  
Legal Framework ◽  
Consumer Confidence ◽  
Research Approach ◽  
Sultanate Of Oman ◽  
Protection Measures ◽  
Content Type ◽  
Legal Provisions

Purpose Within a larger mandate of reviewing the key global trends concerning consumer protection in the electronic commerce (e-commerce) literature, this study aims to study the legal framework concerning e-commerce and consumer protection in the Sultanate of Oman and to analyse the current regulations concerning e-commerce and consumer protection. Design/methodology/approach This study followed the normative legal research approach and resorted to the desk research process to facilitate content analysis of literature containing consumer protection legislation and regulatory provisions in Oman in particular and the rest of the world in general. Findings The study reveals that consumer protection initiatives in Oman are well entrenched for offline transactions, but are relatively new and limited for e-commerce. In spite of the promulgation of consumer protection laws, electronic transaction law and cybercrime law, consumer protection measures for e-commerce in Oman do not address a large number of the global concerns necessary to build consumer confidence and trust in the online environment. Research limitations/implications There is a dearth of information concerning Oman on this topic in the extant literature. The research also witnessed the lack of empirical data on the issue of consumer protection and e-commerce in Oman that offer a detailed database of consumer complaints and associated outcomes. Practical implications The mechanism of consumer protection in electronic transactions is not robust in many countries. Because of the lack of comprehensive and robust legislation, consumers remain vulnerable in the online contractual purchase process. Moving beyond the fragmented legislation, many countries are currently mulling an all-comprehensive e-commerce law, implications of this paper will help the policymakers in identifying the focus areas. Social implications Consumer protection is a burning global issue in this era of consumerism. It is important to build consumer trust, transparency and integrity of transactions to reduce the risk and uncertainties of purchase. Originality/value Consumer protection studies conducted in the context of Oman, hitherto, deal more with data protection and dispute resolution mechanisms, and less with legal provisions, regulations and consumer confidence. The study shares newer insights based on a systematic review of legal and business databases. It is the first study of its kind in the context of Oman and the Middle East in general.

scholarly journals Upaya Penyelesaian Sengketa atas Gagalnya Pengisian Saldo (Top Up) yang dialami Pengguna Kartu Tap Cash Bank Negara Indonesia

2020 ◽  
Vol 7 (1) ◽  
pp. 53-61
Author(s):  
Rahmadi Indra Tektona ◽  
Mardi Handono ◽  
Regina Yurisprastita Jufri
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Legal Protection ◽  
Electronic Money ◽  
Services Sector ◽  
Deductive Method ◽  
Sector Analysis ◽  
The Republic ◽  
Materials Used ◽  
Laws And Regulations

Writing aims to find out the effort to resolve disputes for Tap Cash BNI card users who have failed to top up, which results in losses to consumers. The focus of the problem is how to resolve disputes between the banks as Tap Cash card issuers and consumers of electronic money users. This research begins by reviewing various laws and regulations which form the basis of legal protection for card users, for this reason, it is used normative juridical research, by reviewing the applicable laws and regulations. the author also uses the concept of the rule of law which is obliged to provide legal guarantees. In the matter of efforts to resolve disputes for consumers using the BNI Tap Cash card, the concept of legal protection also applies based on the Law of the Republic of Indonesia Number 8 of 1999 concerning Consumer Protection and Financial Services Authority Regulation Number: 1 / POJK.07 / 2013 concerning Consumer Protection of the Financial Services Sector. Analysis of legal materials used is the analysis of legal materials with a deductive method which is a research method based on general concepts to provide concrete explanations of specific legal issues, data is collected through seminars, articles, and interviews and analyzed qualitatively. Based on the results of research conducted on the problem, it was found several forms of settlement efforts provided by the BNI bank namely the resolution of disputes outside the court and the resolution of disputes through the court.

scholarly journals Urgensi Pembentukan Undang-Undang Fintech Di Indonesia: Harapan Dan Realita Di Era Pandemic Covid-19

SASI ◽  
2021 ◽  
Vol 27 (4) ◽  
pp. 532
Author(s):  
Didik Irawansah ◽  
Wardah Yuspin ◽  
Ridwan Ridwan ◽  
Nasrullah Nasrullah
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Research Method ◽  
Legal Protection ◽  
Legal Framework ◽  
Legal Regulations ◽  
Significant Development ◽  
Legal Problems ◽  
Library Studies ◽  
Research Findings

The growth of Fintech in Indonesia is very rapid, this condition is directly proportional to the legal problems that arise, the legal policy of regulation and protection of Fintech is still focused on the OJK, while the OJK still has many weaknesses in the implementation of supervision and protection of fintech activities, especially in the era of the covid pandemic. -19. The purpose of this study, first, by outlining the legal regulations issued by Bank Indonesia and the Financial Services Authority regarding fintech in Indonesia by looking at the legal weaknesses so that it is important to establish the Fintech Law. second, the urgency of the establishment of a fintech law on fintech consumer protection in Indonesia. Meanwhile, the importance of this research is that it will explain the development of the fintech industry in Indonesia, especially during the Pandemic, where the fintech industry experienced significant development so that this is an idea to provide a clear legal framework for the fintech industry. The research method used is normative juridical using library data and observations of fintech developments through library studies. Research findings show that so far fintech in Indonesia has used regulations contained in the POJK and PBI as the basis for implementing fintech, although it is felt that the regulations issued by POJK and PBI have not been able to provide maximum legal protection for the implementation of the fintech industry. so it is necessary to establish a law in order to provide legal protection for the development of the fintech industry now and in the future.

Fatwā shopping and trust: towards effective consumer protection regulations in Islamic finance

2017 ◽  
Vol 12 (3) ◽  
pp. 340-355 ◽  
Author(s):  
Umar A. Oseni
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Relevant Literature ◽  
Legal Framework ◽  
Legal Regulation ◽  
Policy Framework ◽  
Consumer Trust ◽  
Islamic Finance ◽  
Content Type ◽  
Finance Industry

Purpose This study aims to examine the phenomenon of Fatwā shopping, its effect on consumer trust in Islamic finance products and the need for effective consumer protection regulations in the Islamic finance industry. Design/methodology/approach The methodology used in this study is qualitative research which draws significantly from relevant regulations on financial consumer protection through analytical method to identify common themes on Fatwā shopping and consumer trust in the relevant literature. Findings This study finds that the increasing practice of Fatwā shopping through clandestine searches by some Islamic banks to get their new products endorsed by leading Sharī‘ah scholars requires proper legal regulation to avoid a total erosion of trust in the entire Islamic finance industry. Research limitations/implication Though Fatwā shopping is practiced in the Islamic finance industry, it is always difficult to get some desperate Islamic bankers to agree to this; hence, this study does not portend to examine the evidence on Fatwā shopping, but it seeks to bring to the fore the effect of Fatwā shopping on consumer trust in Islamic financial services, and the need for effective consumer protection regulations. Practical implications This study is expected to provide an invaluable guide and policy framework for emerging and promising jurisdictions on the need to regulate Fatwā shopping through an effective legal framework based on some best practices identified in the study. Originality/value Though there have been a number of studies relating to Fatwā shopping, focusing on the need for effective consumer protection regulations in the Islamic finance industry will enrich the existing literature and have significant implications for the future of the industry.

scholarly journals PROTECTION OF THE AFRICAN LION: A CRITICAL ANALYSIS OF THE CURRENT INTERNATIONAL LEGAL REGIME

2016 ◽  
Vol 19 ◽  
pp. 1 ◽  
Author(s):  
Samantha Watts
Keyword(s):  
Biological Diversity ◽  
Population Decline ◽  
Legal Protection ◽  
Legal Framework ◽  
Convention On Biological Diversity ◽  
Legal Regime ◽  
Protection Measures ◽  
African Lion ◽  
State Boundaries ◽  
African Lions

This article looks at the current international regime that pertains to the African lion, a species that needs adequate protection across its range (a range that does not adhere to state boundaries). This analysis comes at a time when threats such as habitat and prey loss, retaliatory killing, trophy hunting and trade, are all impacting the remaining populations of African lions. The species is in danger of rapid population decline and possible extinction in the near future. Two decades ago there was an abundance of African lions, roughly 100 000, on the continent. But at present there are less than 32 000, while some believe there to be as little as 15 000 left. This decline is mainly due to the threats noted above. African lions are currently listed as "vulnerable" on the International Union for Conservation of Nature Red List of Threatened Species. This listing is being contested by commentators who believe that the species now requires an "endangered" status. African lion populations, and the threats to the species, extend across state boundaries. Therefore, international law is of particular importance in providing conservation and protection measures to the species. Creating conservation obligations at a global level allows for more uniform action, implementation and enforcement of legislation at regional and local levels. Therefore this article looks at each threat to African lion populations in detail and then assesses the international legal regime pertaining to each of these threats, and whether that regime is adequate. The Convention on Biological Diversity, Convention on the Conservation of Migratory Species, Convention on International Trade in Endangered Species of Wild Fauna and Flora and the Convention on Wetlands of International Importance are but some of the international instruments that are analysed. This article outlines the arguments that the international legal framework is not acceptable for the protection of the species, and addresses both the positive and negative aspects of this regime. It is found that the international legal regime for the African lion is in fact not effective in achieving the protection and survival of the species. Some changes are recommended, and the best way forward through an international legal lens is outlined. The security and viability of the African lion is uncertain, and legal protection of the species needs to be clear to start ensuring their survival in the future. With the increase in threats to the species and African lions already regionally endangered in some parts of Africa, it is obvious that some legal changes need to be made to ensure greater protection of the African lion at an international level.

scholarly journals PERLINDUNGAN HUKUM BAGI NASABAH PENGGUNA INTERNET BANKING

GANEC SWARA ◽  
2019 ◽  
Vol 13 (2) ◽  
pp. 207
Author(s):  
ALINE FEBRIANY LOILEWEN ◽  
TITIN TITAWATI
Keyword(s):  
Risk Management ◽  
Consumer Protection ◽  
Financial Services ◽  
Service Sector ◽  
Legal Protection ◽  
Internet Banking ◽  
Electronic Information ◽  
Customer Complaints ◽  
Services Sector ◽  
Financial Services Sector

  This study aims to examine and analyze how the legal protection and supervision of the banking world for customers using internet banking facilities.  This study uses a form of normative legal research, namely research that is based on written rules and legislation and various literature related to the problems that will be discussed in this study.   Some forms of legal protection for customers using internet banking facilities are the existence of the Financial Services Authority Regulation No.38 / POJK.03 / 2016 concerning Application of Risk Management in the Use of Information Technology by Commercial Banks (POJK IT Risk Management). The existence of Article 1 number 12 of Law No. 11 of 2008 concerning Information and Electronic Transactions (UU ITE), electronic signatures are signatures consisting of electronic information that is attached, associated or related to other electronic information used as a verification and authentication tool . Another thing that can be done by customers who use internet banking facilities is to conduct customer complaints. Customer complaints are a manifestation of the protection of rights owned by customers, namely the right to be heard. This right is regulated in Article 4 letter d of Law 8 of 1999 concerning Consumer Protection of the PK Law). Whereas in the financial services sector, there is Article 32 of the Financial Services Authority Regulation No. 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector (POJK PK) which stipulates that financial service sector business operators must have and carry out customer service and settlement complaints.  The supervision policy carried out by Bank Indonesia towards banks aims to protect the interests of the community and to maintain the continuity of the bank's business as a trust and as an intermediary institution, the supervision is carried out either directly or indirectly

scholarly journals Legal Protection for Online Transaction Users: A Review of The Constitution No. 8 of 1999 Regarding Consumer Protection

2020 ◽  
Vol 2 (1) ◽  
pp. 14
Author(s):  
Wahyuni Safitri ◽  
Wafda Vivid Izziyana
Keyword(s):  
Data Collection ◽  
Electronic Commerce ◽  
Consumer Protection ◽  
Legal Protection ◽  
Electronic System ◽  
Literature Study ◽  
Electronic Information ◽  
Research Results ◽  
Know How ◽  
Civil Laws

Legal protection for consumers in an electronic commerce transaction in Indonesia is crucial for the development of the society’s economy. The aim of this research is to know how is the legal protection for online transaction users is in Indonesia. The method of study is the juridicial-normative method. The data collection is done through literature study. The research results show that the legal protection in the Electronic Transaction Agreement in Indonesia is regulated in Articles 47 and 48 of the Governmental Decree, No. 82 of 2012 regarding the Establishment of the Electronic System and Transaction. Legal protection for the society is written in Article 46 of the Constitution No. 11 of 2008 regarding Electronic Information and Transaction and Article 62 of the Constitution No. 8 of 1999 regarding Consumer Protection. Legal protection towards consumers in electronic transaction in Indonesia is regulated strictly both in the aspects of criminal and civil laws. Keywords: law; online transaction; consumer protection.

scholarly journals Juridical Analysis of Protection of Bank Customers from Skimming Action Reviewed from Consumer Protection Law

2019 ◽  
Vol 6 (4) ◽  
pp. 546
Author(s):  
Nor Hazrina ◽  
Yulfasni Yulfasni ◽  
Delfianti Delfianti
Keyword(s):  
Consumer Protection ◽  
Banking Sector ◽  
Service Providers ◽  
Legal Protection ◽  
Primary Data ◽  
Literature Study ◽  
Banking Services ◽  
Consumer Protection Act ◽  
Automatic Teller Machine ◽  
The Right

Today technology is growing rapidly including in the banking sector, banks as service providers continue to provide services to facilitate customer transactions, one of which is in the form of an ATM machine (Automatic Teller Machine), besides that customers as consumers in banking services also have the right to get comfort and security for funds entrusted by the customer to the bank, and also the bank is obliged to provide protection and safeguard against crime by third parties with skimming mode, as stipulated in the consumer protection law. The method in this research is normative juridical research. Research data were collected through literature study and interviews with resource persons to obtain primary data and literature studies to obtain primary data. The focus of this research is to find out how the Protection of Bank Customers From the Act of Skimming Viewed from the Consumer Protection Regulation. The results of the study indicate that the form of legal protection for bank customers from acts of skimming in terms of the Consumer protection Act that is legal protection and direct protection, and if there is a skimming action that is detrimental to the customer, and it is proven that there is no element of negligence from the customer, the bank will provide compensation for the amount of money lost.

scholarly journals LEGAL PROTECTION OF CONSUMERS ON FINTECH-BASED BUSINESS LOANS FOR SMALL AND MEDIUM ENTERPRISES (UMKM)

2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Mellisa Rahmaini Lubis
Keyword(s):  
Venture Capital ◽  
Financial Institutions ◽  
Consumer Protection ◽  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
Legal Protection ◽  
Services Sector ◽  
Medium Enterprises ◽  
Legal Consequences

Consumers loses have occurred in the practice of Fintech-based loans by non-bank financial institutions. The reports of losses arising from Fintech transactions has increased. This is because many Fintech organizers have not received permission from the OJK but are still able to conduct business activities in Indonesia. The problem in this study is: How is the supervision by the Financial Services Authority (OJK) of non-bank financial institutions providing fintech-based venture capital lenders for MSMEs? And how is the legal consequences of fintech-based business capital loan services for MSME entrepreneurs. The study used normative legal approach and the data analyzed by descriptive qualitative.          The results of this study indicate that supervision by the OJK of non-bank financial institutions providing fintech-based venture capital lenders for SMEs as a form of legal protection to consumers. It is carried out in the form of preventive and repressive protection. Preventive protection is implemented by enacting OJK Regulation Number 77 / POJK.01 / 2016, OJK Circular Letter Number 18 / SEOJK.02 / 2017 and OJK Regulation Number 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector. Repressive protection is by applying sanctions against fintech organizers who commit violations in the form of written warnings and fines; restrictions on business activities; and revocation of permission. The legal consequences arising from fintech-based business capital loan services for SMEs to fintech providers are required to improve standards and meet consumer protection aspects. The legal consequence for MSMEs is the potential for fraud and misuse of consumer data by Fintech service providers.

Mobile money adoption and usage and financial inclusion: mediating effect of digital consumer protection

2020 ◽  
Vol 22 (3) ◽  
pp. 157-176
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Structural Equation ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Least Square ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Drawing from the argument that mobile money services have a significant potential to provide a wide range of affordable, convenient and secure financial services, there have been rampant frauds on consumers of financial products over the digital financial platform. Thus, this study aims to establish the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion with data collected from micro small and medium enterprises (MSMEs) in northern Uganda. Design/methodology/approach To achieve the main objective of this study, a research model was developed to test for the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion. The data were collected from MSMEs and structural equation modelling in partial least square (PLS) combined with bootstrap was applied to analyze and test the hypotheses of this study. The direct and indirect effect of mobile money adoption and usage on financial inclusion was tested through digital consumer protection as a mediator variable. Findings The findings from the PLS-structural equation modelling (SEM) showed that mobile money adoption and usage has both direct and indirect effect on financial inclusion. Moreover, financial inclusion is influenced by both mobile money adoption and usage and digital consumer protection. Research limitations/implications The study used partial least square (PLS-SEM) combined with bootstrap confidence intervals through a formative approach to establish the mediating effect of the mediator variable. Hence, it ignored the use of covariance-based SEM and the MedGraph programme. Furthermore, data were collected from samples located in Gulu district, northern Uganda and specifically from MSMEs. This limits generalization of the study findings to other population who also use mobile money services. Practical implications Promoters of digital financial services, managers of telecommunication companies, and financial inclusion advocates should consider strengthening the existing digital consumer protection laws on the mobile money platform. A collaborative approach between the mobile network operators, financial institutions and regulators should tighten the existing laws against mobile money fraudsters and an efficient mechanism for recourse, compensation and remedy should be set up to benefit the victims of frauds and cybercrime on the Fintech ecosystem. Originality/value The current study gives a useful insight into the critical mediating role of digital consumer protection as a cushion for promoting financial inclusion through mobile phones over the Fintech that face great threat and risk from cyber insecurity.

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