The Risk Mitigation to the Islamic Crowdfunding in Indonesia

Fiska Silvia Raden Roro

2018

Abstract

Islamic crowdfunding which is one of the digital technology and information development on finance and economics provide online financial services for contracting parties without them knowing each other. In the Islamic crowdfunding system, the contracting parties may never meet in the real life or even they will stay anonymous to each other. This situation shows that a cyber ​​risk is one of the legal risks in Islamic crowdfunding transaction. Other than legal protection and supervision through policy and comprehensive regulatory framework from the authorized institution, risk mitigation is urgently needed to protect those who are bound to Islamic crowdfunding transactions, especially legal protection for financer. In the end of May 2018, The Financial Services Authority/ Otoritas Jasa Keuangan returned 41 registration documents from the candidate of financial technology companies (fintech) due to the consideration that they are unable to fulfill the obligation to mitigate the risks. The concept of Islamic crowdfunding draws inspiration from microfinance and crowdsourcing under sharia principle. Beside its benefits in terms of easy and practical side, Islamic crowdfunding also has magnitude risk. This article will explain what are the risks that become obstacle to Islamic crowdfunding and the legal solutions in order to conduct risk mitigation in Indonesia. Regarding to the guidance (fatwa) of Dewan Syariah Nasional/National Sharia Board No. 117/DSN-MUI/II/2018, therefore this paper is limited only to analyse Islamic crowdfunding as a platform of financial service based on information technology under the sharia principles.

Paper Citation

in Harvard Style

Raden Roro F. (2018). The Risk Mitigation to the Islamic Crowdfunding in Indonesia.In Proceedings of the International Law Conference - Volume 1: i-NLAC, ISBN 978-989-758-482-4, pages 237-245. DOI: 10.5220/0010052002370245

in Bibtex Style

@conference{i-nlac18,
author={Fiska Silvia Raden Roro},
title={The Risk Mitigation to the Islamic Crowdfunding in Indonesia},
booktitle={Proceedings of the International Law Conference - Volume 1: i-NLAC,},
year={2018},
pages={237-245},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010052002370245},
isbn={978-989-758-482-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Law Conference - Volume 1: i-NLAC,
TI - The Risk Mitigation to the Islamic Crowdfunding in Indonesia
SN - 978-989-758-482-4
AU - Raden Roro F.
PY - 2018
SP - 237
EP - 245
DO - 10.5220/0010052002370245