Legal Literacy - Learn how online loans in Indonesia are integrated with Article 1320 of the Civil Code which regulates the legal requirements of an agreement. This article explains the agreement, the competence of the parties, the object of the agreement, and the lawful cause in the context of online loans, as well as regulations from the OJK and the sharia perspective according to the MUI.
In an era of financial technology innovation, online loans have become a popular alternative for Indonesian people to meet their financial needs. However, this rapid development raises important questions about how this service is integrated with the Civil Code (KUHPerdata), especially Article 1320 which regulates the validity requirements of an agreement.
Legal Requirements of an Agreement Article 1320 of the Civil Code:
- Agreement Between the Parties
- Competence of the Parties
- The Existence of a Specific Object
- The Existence of a Lawful Cause
In the context of online loans, each of these conditions plays an important role in ensuring fair and legal transactions.
Agreement of the Parties
In online loans in Indonesia, the agreement of the parties is an essential element that must exist to form a valid agreement. Fintech Lending agreements are regulated by the Financial Services Authority Regulation (POJK) and require agreement from both parties.
Elements of Agreement:
Free Will:
Free will in the context of online loans refers to an individual's ability to make decisions without coercion or external pressure. Borrowers must choose to apply for a loan consciously, understand the terms and conditions, and accept the consequences of the agreement.
Aspects of free will in online loans include:
- Clear Understanding: Borrowers must understand the interest rates, fees, and other conditions associated with the loan.
- Without Coercion: There is no coercion or pressure from the lender or other parties.
- Information Availability: Information regarding loans must be transparent and easily accessible.
- Ability to Refuse: Borrowers have the option to refuse a loan if the terms are not suitable.
Meeting of Minds:
Meeting of minds refers to the agreement between the borrower and the service provider regarding the terms and conditions of the loan. This agreement includes:
- Agreement of Terms and Conditions: Borrowers and organizers must agree on the terms and conditions of the agreement.
- Approval Process: Borrowers must agree to the terms and conditions via electronic signature or online approval.
- Information Transparency: Organizers must provide complete and clear information.
- Option to Refuse: Borrowers can refuse a loan if the terms are not suitable.
OJK regulations stipulate that agreements in the online lending process are standard agreements, which means that the terms and conditions have been prepared by the organizer and must be met by the consumer. If one party does not agree, then that party can choose not to enter into the agreement.
Seriousness:
Seriousness in online lending refers to the sincere intention of the borrower and the organizer to comply with the terms and conditions of the agreement. This includes willingness to fulfill payment obligations and follow agreed procedures.
Aspects of seriousness include:
- Understanding of Terms and Conditions: Borrowers must understand the terms and conditions of the loan.
- Payment Commitment: Borrowers must have a realistic payment plan and be committed to paying on time.
- Complete Documentation: The application process requires complete documentation.
- Use of Funds: Loan funds should be used for clear and responsible purposes.
Seriousness is also evident from the organizers who must carry out ethical business practices, including providing transparent information and avoiding unfair interest practices or fraud.
Importance of Agreement:
Without a valid agreement, the agreement cannot be considered to have binding legal force. Agreements obtained by unlawful means, such as through coercion or fraud, may cause the agreement to be canceled. Article 1321 of the Civil Code affirms that consent given due to errors or obtained by coercion or fraud has no legal force. This shows the importance of an agreement based on the free and honest will of all parties involved.
Competence of the Parties
In the online lending system in Indonesia, the competence of the parties is an important requirement for forming a valid agreement. Competence refers to a person's legal ability to perform legal acts, including signing online loan agreements.
According to civil law, a person is considered capable of performing legal acts if they:
- Have reached adulthood (at least 18 years old or married).
- Are not under guardianship.
- Do not have mental or physical impediments that prevent them from understanding the consequences of their legal actions.
Element of Competence:
Adulthood Age:
To apply for an online loan, borrowers must be of legal age, usually at least 21 years old. Some providers may set a minimum age of 18 years. The maximum age limit for applying for an online loan usually ranges from 60 to 64 years.
Mental Ability:
Mental ability refers to the capacity to understand and make rational decisions about applying for a loan, including understanding the financial and legal consequences of the agreement. This aspect includes in-depth understanding, the ability to make appropriate decisions, risk awareness, and adequate mental health.
Legal Status:
Online loans are regulated by OJK through POJK No. 77/POJK.01/2016. Services registered and supervised by OJK are legal and recognized by law in Indonesia. The MUI states that online loans with interest are considered haram because of usury, and acts of intimidation by illegal online loan actors are not allowed.
Importance of Capacity:
Capacity is very important because agreements made by parties who are not capable can be canceled. This aims to protect parties who do not have the full ability to understand or give valid consent to the agreement.
Specific Agreement Object
The object of the agreement refers to the subject matter of the agreement itself and must meet certain criteria, be real, possible, and permissible in accordance with the general principles of agreements in the Indonesian Civil Code.
Elements of the Agreement Object:
- Specific: The object must be clearly defined, such as the amount of money borrowed.
- Real: The object must be concrete and identifiable.
- Possible: The object must be legally and factually possible.
- Permissible: The object must not conflict with laws or moral norms.
Online loan agreements must also comply with OJK regulations, including POJK No. 77/POJK.01/2016 and POJK No. 10/POJK.05/2022, which regulate information technology-based money lending services.
Importance of the Agreement Object:
An unclear agreement object or one that does not meet the above criteria may cause the agreement to be null and void or voidable. Therefore, it is important for the parties to ensure that their agreement object is clear and in accordance with legal provisions.
Halal Cause
Halal cause refers to the reasons underlying the parties to enter into an agreement and must be in accordance with the law, morality, or public order.
Element of Halal Cause:
- Compliance with the Law: Online loans must comply with OJK regulations.
- Decency: Must not violate norms of decency.
- Public order: Must not disrupt public order.
The MUI states that online loans containing interest are considered haram because the interest is categorized as usury. The MUI also emphasizes that intimidation by illegal online loan actors against defaulting borrowers is not allowed.
Importance of Halal Cause:
The halal cause is very important because it is the ethical and legal basis of an agreement. Agreements with non-halal causes can be canceled or declared null and void.
Conclusion
To ensure that an online loan agreement is valid and legally binding, it is necessary to pay attention to the conditions in Article 1320 of the Civil Code. Agreement, the capacity of the parties, a specific object, and a halal cause are important foundations of any valid agreement. Thus, online loans that comply with OJK regulations and sharia principles can provide safe and legal financial solutions for the Indonesian people.
Write a comment