Analysis of Online Lending Practices in the Perspective of Sharia Economic Law in the Digital Era

Abstract

Abstract

     The development of globalization in the digital era has had a major impact on the economy, one of which is through the emergence of online loan services/pinjol. However, this phenomenon has also raised new problems, especially the rampant practice of illegal online loans/pinjol that exploit the high market potential in Indonesia. One of the violations that often occurs is the misuse of user personal data without permission which is contrary to the Electronic Information and Transactions Law (UU ITE) especially in Articles 26 and 31 in conjunction with Article 48. Meanwhile, from the perspective of sharia economic law, illegal pinjol practices are contrary to sharia principles because they contain elements of usury (additional prohibited), gharar (unclear agreement), and tyrannical actions (harming other parties). Financial transactions in Islam must be based on the principles of justice, honesty, and mutual consent. Therefore, things like this require more attention to handle online loan cases in the digital era to face the challenges of online loans (pinjol) in the digital era that are in accordance with sharia principles.

Keywords: online loans, ITE Law, personal data, sharia economic law, usury, digital era.