To follow the growth of technology, all people nowadays must concern about the financial system update. As a response to that matter, the government has made a good start by renewing the regulation regarding the fintech in Indonesia. On 2016, the government, in this case, OJK, had issued the POJK Number 77/ POJK 01/ 2016. The regulation focused on the peer-to-peer landing on fintech. Furthermore, in 2018, OJK renewed the fintech regulation with POJK Number 13/ POJK.02/2018 in Digital Financial Innovation of Financial Services Sector.

 

The law can also accommodate the sharia financial technology system. The system that is derived from the Islamic system and refers to Alquran and hadith has been a popular one in Indonesia since the country has the most significant Muslim population in the world. Different from the regular system, the sharia system prohibits ambiguity (ghahar), interest (riba), and gambling. The certainty that the sharia system provides attracts many people, especially Muslim users.

 

Sharia financial system experiences rapid growth in Indonesia. The data from OJK shows that the Islamic banking assets in Indonesia increase from year to year. On 2017, the growth of Sharia financial assets reached 20 percent.  In June 2018, OJK noted that in Indonesia, there is 64 fintech company with peer-to-peer lending, and 3 of them that have been registered are based on Sharia system. Those companies are Investree, Dana Syariah, and Ammana.

 

Cited from Bisnis Indonesia, Ronald Yusuf Wijaya, The Chairman of Association of Sharia Fintech in Indonesia (Asosiasi Fintech Syariah Indonesia/AFSI), stated that until July 2018, there had been five fintech company based on Sharia system to register to OJK.

 

When we talk about fintech system, we can’t separate it based on application.  In Indonesia, there are many smartphone applications that you can download freely and can be used to support the payment in any vendors, to save the money, or to do the crowdfunding, such as Go-Pay, OVO, DOKU, and KitaBisa.

 

To support the Sharia fintech system, a company named PT. SyarQ Solution System releases SyarQ in 2017. SyarQ provides the credit facilities for any stuff without the price uncertainty like conventional credit. The application was made on 2017and having the update on October 2018 (in beta version).

 

There are two ways of payment that SyarQ offers. First, cash payment and the second is murabahah. Murabahah is a credit system without interest and without using the credit card. Through murabahah system, the bank/the vendors (the first party) sells the stuff with the margin to the buyers (the second party.

 

However, the first party must inform the margin that he applies to the second party). The system, although it seems almost the same with the interest system, yet, it lacks uncertainty that can confuse the buyers. In the conventional credit system, the buyers cannot predict the number of interests that they must pay in the future.

 

Despite the small amounts of the company that carries on the Sharia system, the regulator in Indonesia has a supportive environment for the Sharia system. Unlike in Malaysia, OJK in Indonesia never limits the amounts of the fintech company that would like to register themselves every year.