FINDING THE HARMONY OF FINANCIAL TECHNOLOGY IN ISLAM PERSPECTIVE: A PHENOMENON IN INDONESIA

ABSTRACTThe purpose of this article is to find out how harmony between the era of financial technology is compared with Islamic principles in Indonesia. Financial technology that is intended for humans to meet ever-increasing needs, increasingly rapid human mobilization, as well as increasing human activity. The method used in the discussion of this article is a critique of the phenomenon that developed in the era of financial technology in Indonesia as a developing country that supports the era of financial technology from developed countries. The literature used in this paper is published by national and international scientific journals and is supported by scientific books from various scientists. This article is expected to provide additional knowledge, become an opening point for further research, and be made as a guide in conducting business at various levels that discuss using financial technology. Keyword:  Financial Technology, Islamic Perspective, Regulation


INTRODUCTION
2019 is the year when all aspects of human life have been touched by technology. The need that continues to increase, human mobilization is getting faster, and human activity is always increasing, forcing the existence of facilities that can fulfill it all. The term financial technology has already been used in developed countries in the world, and Indonesia has begun to adopt financial technology in recent years. This adoption follows human needs and habits that require convenience and a 'shortcut' for various matters. Taking into account the rapid development of technology in Indonesia, it is not impossible if all can be realized. The term 'money cannot buy time' seems connotatively not to be valid now. Various technological conveniences certainly have consequences in terms of facilities that must be prepared.
Including how much the costs must be incurred by the government or business people to realize considered difficult and takes a lot of time, but what must also be considered is whether the entry of the era of financial technology into business is in accordance with Indonesian culture that has the majority of Islamic religion. Islam has rules and regulations in running a good business to achieve mutual benefit. Indonesia also has a new era in business principles, namely sharia. this paper will discuss the alignments that occur in Indonesia regarding the inclusion of financial technology and sharia principles together.

Financial Technology: Conventional
Generaly, financial technology can be interpreted as a technological innovation in financial transaction services. According to Bank Indonesia regulation Number 19/12/PBI/2017 concerning the implementation of financial technology, financial technology is the use of technology in the financial system that produces new products, services, technology and/or business models and can have an impact on monetary stability, financial system stability, and/or efficiency, smoothness, security and reliability of the payment system. Furthermore, according to Bank Indonesia regulation Number 19/12/PBI/2017 concerning the implementation of financial technology, the aim of implementing financial technology is to encourage innovation in the financial sector by implementing consumer protection and risk management and prudence to maintain monetary stability, financial system stability , and payment systems that are efficient, smooth, safe and reliable. The scope of financial technology that must be followed by business entities is from registration, regulatory sandbox, licensing and approval, to monitoring and supervision. Carney (2016) describes financial technology starting from the financial sector in the economy which is a key sector and continues to grow in accordance with the needs of the community. Financial technology is not only applied in developed countries, but also begins to emerge and grow in developing countries, such as Indonesia. Financial technology brings new hope for convenience in various types of financial transactions in various sectors.

Financial Technology: Sharia
Islam regulates various things in the joints of human life, including in business. Alquran and hadith that mention and explain the rules in trading as many as 20 translations of trade which are repeated as many as 720 times. According to Agustianto (2004) alqur'an regulates eight principles regarding trade in order to create mutual benefit, namely: First, every transaction in trade, there must be mutual mutual agreement between producers and consumers, so that both parties do not feel aggrieved and wronged; second, upholding the principle of justice, balance in terms of size, currency size, and profit sharing; third, prohibited usury '; fourth, compassion and tolerance help universal brothers and sisters; fifth, do not do all kinds of financial investment activities in businesses that are prohibited; sixth, trade must avoid the practice of speculation, gharar, tadlis, and maysir; seventh, trade must not forget prayer and zakat and always remember Allah; and eighth, there must be good records of cash, debts.
Various developing countries began to adopt the concept of financial technology, both in full and in part, as in Tanzania. There is research conducted by Sulayman in Tanzania.
According to Sulayman (2015) Tanzania is a country that has experienced a change in growth which can be said suddenly in the area of the Islamic finance industry for the past time. But unfortunately, progress in the field of Islamic financial industry was not matched by progress in terms of technological facilities that could accommodate these changes. If the weakness continues to be allowed, it will make the society's socio-economic conditions worse. Furthermore Sulayman added, to offset the increase in the Islamic finance industry and to be able to survive, it is necessary to take several steps, namely: promoting Islamic financial literacy, taking action in time, maintaining Islamic ethical values, utilizing socio-economic development efforts in the region , increasing economic investment at the macro level.
According to Salman and Nawaz (2018), there are indeed wide gaps and differences between conventional systems and sharia systems in various fields. Communities tend to entrust their finances more with financial institutions with a sharia foundation. The basic principle in carrying out financial transactions is in accordance with the Qur'an and al-hadith.
Basically the contract contained in fintech (muamalah) as long as it does not conflict with sharia principles then it is permissible (Al-ashlu fil muamalah al ibahah). Besides that, fintech refers to one of the other muamalah principles, namely an-taradhin, which has the meaning of mutual blessing between the two. Careful attention should also be paid to the elements of sharia, as delivered by al-Ghazali in hifz ad -din, hifz-an-nafs, hifz al-aql, hifz-an-nasl, and hifzal-mal. With the existence of fintech, this is an effort to facilitate everyone in making transactions and investments based on sharia principles. Some of these sharia principles regulate how the process reaches its final goal, can be done properly and correctly. At present the obstacles faced by fintech are sharia-based, which are related to differences in contracts used. Some types of FinTech that have been regulated are the types of Peer to Peer Lending (technology-based loans), electronic money (e-Money), and payment gateways (payment gateways). Sharia law that regulates financial technology does not yet have legal certainty in some FinTech types such as crowdfunding , the market aggregator, risk & investment management does not yet have its sharia fatwa. Then there is a need for certainty in sharia law, which must be in line with the dynamics of technological development.
According to financial services authority data, there are 106 companies that have obtained permits to establish financial technology-based companies both conventionally and sharia, as can be described in table 1 below:

Legal Basis in Indonesia
The legal basis regarding the implementation of financial technology in Indonesia is according to Sahroni (2018)

in the Fatwa of the Standard Council of the Indonesian Ulema Council Number 117 / DSN-MUI / II / 2018 Concerning Information Technology-Based
Financing Services Based on Sharia Principles, there are three economic product parameters that can be categorized according to sharia, namely: first, free from prohibited transactions; second, the product complies with a contract or sharia transaction; and third, it is obligatory to keep the adab (akhlah) of Islam in muamalah.

METHODOLOGY
The method used in writing this article is a critical review of the phenomenon of the development of the era of financial technology in Indonesia as a developing country that adopts the era of financial technology from developed countries. This phenomenon will be juxtaposed with the laws and regulations in Islamic business principles stated in al-qur'an and hadith whether it is appropriate, contradictory or contradictory. The literature used in this paper comes from scientific journals both nationally and internationally and is supported by scientific books from various experts.

Conventional and Sharia Financial Technology: Harmony
Financial technology is a new concept to make it easier for consumers and producers to transact financially without having to meet directly at all times. According to Meifang et al (2018), the presence of the internet in financial transactions can provide superior access and accessibility. Furthermore, according to Meifang, one example of innovation in financial payment technology is e-commerce. Some of the factors that support the growth of increased e-commerce are the application of IOT and cloud computing in a chain of production, logistics and transportation. Mobile internet support also allows consumers to make transactions wherever and whenever. According to Chandra (2018) quoted from the detikfinance.com website, financial innovation needs to be directed so as to give birth to digital financial innovations that are respected, safety, and prioritize consumer protection and have risks that can be managed well.
Financial technology can indeed provide convenience in various ways, but financial technology also sometimes provides several weaknesses. As described by Korwatanasakul (2018). According to Korwatanasakul, the existence of technology can be a barrier for people who have physical impairments (vision). Korwatanasakul conducted experiments on 40 people who suffered from visual weakness. Physical design constraints on the use of ATM technology are difficult to deal with. It is very difficult to access financial services such as payments, transfers, or deposits. This is because many existing financial technology designs still do not support people who have limited vision. Another disadvantage is the existence of financial inclusion. Bansal (2014)

'Shulh (settlement of cases through deliberation and consensus) can be done among Muslims except shulh which forbids the lawful or justifies the forbidden; and the Muslims are bound by the conditions imposed between them except the conditions that forbid the lawful or justify the forbidden '
Hadith of the Prophet. history of Muslims, from 'Aisha and Thabit from Anas: "You know your world affairs more"

Rule of Fiqh
"Basically, all forms of muamalat are permitted unless there are arguments that forbid them" "All dharar (danger / loss) must be eliminated" "All dharar (danger / loss) must be prevented as much as possible" "Something that applies based on custom is the same as something that applies in syara '(as long as it does not conflict with the Shari'a)" "Customary customs can be set as law" "Legal provisions depend on the presence or absence of" illah " "The policy of the leader towards the people must follow (refer to / take sides) to the benefit of the people" "Where there is benefit, there is the law of God" The National Standard Council of the Indonesian Ulema Council issued the fatwa because it considered several things, namely: 1) the development of technology and the faster access needed by micro, small and medium scale business actors; and 2) the community needs an explanation regarding legal provisions and regulations related to technology-based financing.
Contracts and meetings between producers and consumers (sellers and buyers) in one place / assembly in each transaction are indeed one of the legal requirements that must be fulfilled. However, on the concept of financial technology, these two aspects were eliminated. This is because human movement is very high, time is increasingly limited, and transactions that must be fulfilled make contracts and meetings not an obligation. Financial technology is able to replace both aspects with agreements and meetings online and mobile.
The fatwa of the National Standard Council of the Indonesian Ulema Council in one of the explanatory paragraphs has been explained, what is meant by the sahr assembly in each contract as we have explained is not the existence of the two parties transacting in one place. Because sometimes the place of the two parties is different when there are intermediaries who connect them. Such as transactions via telephone, radiogram or via mail. The purpose of an assembly is one Age or time in which both parties make transactions. Then the contract assembly is a condition in which both parties make transactions. From this matter fiqh experts conclude: "really the assembly collects a number of separate matters. Based on this information, the assembly of the contract in the telephone or radiogram discussion is the time the two parties are connected while the conversation is still related to the contract. Therefore, if the second conversation When we have switched to something else, the assembly will end. Furthermore in the decision of the National Standard Council of the Indonesian Ulama Council, Sharia Information Technology Based Financing Services are based on sharia principles that bring together or connect Financing Providers with Financing Recipients in order to carry out financing agreements through electronic systems using internet networks.
According to Yarli (2018), the dynamics and various thought constraints faced by Islamic financial technology are the different contracts used in a sharia-based entity. According to Pekerti et al (2018), the agreement for qabul in a sale and purchase agreement can be carried out with words, writing or signs for those who are unable to speak or write. It can even be done with perbuata which shows the voluntary aspect between the two sides of the tribe to hold an agreement commonly known as al mu'athah. Actually, in the alquran it does not regulate technically and in detail what words are used in a qabul sale and purchase agreement. The qabul of buying and selling can be done according to custom as long as it does not contradict the syara.
According to Mohammed et al (2015), it is necessary to hold Islamic accounting standards in the reporting of Islamic financial institutions. further according to Mohammed et al, so far there are still no specific accounting standards for Islamic financial institutions such as the rights of AAOIFI, this can lead to technical and non-technical constraints in the future.
According to Alsmadi and Zarour (2014), sometimes there are technical obstacles that can occur in the process of applying sharia regulations in the fields of financial services. Financial technology can basically facilitate human movement in financial transactions. The concept of financial technology utilizes internet networks in networks that are used at all times by humans. Financial technology minimizes or even eliminates regulations and conditions that must be met in financial transactions, including the existence of agreements and obligations for meeting producers and consumers. Such a concept is suitable when applied in a conventional setting. different from sharia which basically still recommends the existence of contracts and meetings between producers and consumers. These two aspects aim to avoid the potential for fraud and harm one party. However, in facing the future, the two aspects began to be adjusted again. The National Standards Board of the Indonesian Ulema Council made a fatwa describing that the conditions must not be met directly and the meeting between producers and consumers.
In this case the contract can be replaced with electronic documents provided that it meets the requirements for balance, fairness and justice according to sharia. The author hopes that there will be further research in the future and discuss financial technology from another perspective.
The author also hopes that this article can be used as a scientific reference material in both academic and non-academic fields.