The Validity of Sharia Contracts in Fintech-Based Financing: Reconstructing Legal Certainty and Consumer Protection in Indonesia

Abstract

The digitalization of Islamic finance has raised important legal questions concerning the validity of Sharia contracts, legal certainty, and consumer protection in fintech-based financing. This study examines the validity of Sharia contracts in Indonesian digital financing and evaluates the adequacy of the existing legal framework in safeguarding contractual rights and consumer interests. The research employs normative legal research using a library research method, with statutory and conceptual approaches. Primary legal materials include relevant Indonesian legislation, Financial Services Authority regulations, and Islamic legal instruments, while secondary materials comprise scholarly publications on Islamic fintech, contractual validity, and consumer protection. The analysis indicates that the legal assessment of digital Sharia financing requires an integrated examination of substantive Sharia compliance, electronic contractual certainty, regulatory accountability, and consumer protection. Formal recognition of electronic agreements alone does not necessarily establish substantive Sharia compliance or ensure adequate consumer safeguards. Accordingly, this study proposes a conceptual framework connecting Sharia contract validity, electronic contractual certainty, regulatory accountability, and consumer protection. The framework emphasizes transparent contractual terms, verifiable consent, clearly allocated responsibilities, and accessible legal remedies. This study contributes a normative perspective for evaluating the coherence of the legal framework governing digital Islamic financing in Indonesia and identifying areas requiring further legal clarification and regulatory improvement.