Islamic Capital Market Accessibility and Fintech Innovation: Transformation of POJK 77/2016

Abstract

The objective of this study is to analyse the transformation of
the Islamic capital market in Indonesia in conjunction with
fintech innovation, particularly in the context of Financial
Services Authority Regulation (POJK) Number 77 of 2016
concerning Information Technology-Based Money Lending and
Borrowing Services. The research method employed is
descriptive analysis with a qualitative approach. The data were
obtained through a literature study and secondary data analysis
related to the growth of the Islamic capital market, the use of
fintech in the productive sector, and the norm structure in POJK
77. The findings of this study indicate that the Islamic capital market has experienced a notable expansion in the number of
investors, transaction value, and number of issuers.
Nevertheless, there are notable fluctuations in certain sectors
pertaining to the utilisation of fintech lending. An analysis of the
norms in POJK 77 reveals inconsistencies with the Maximising
Behaviour theory in several aspects. These include the high
minimum capital requirements and the complexity of the
licensing process. This study recommends that regulatory
adjustments be made in POJK 77/2016, namely, that minimum
capital requirements be simplified, licensing be made simpler,
and support for Islamic fintech be increased. Multistakeholder
collaboration and increased investor participation are essential
for the advancement of the Islamic capital market.