RECONSTRUCTION OF FINANCIAL TECHNOLOGY-BASED TRANSACTION REGULATION IN PROTECTING CONSUMERS
The phenomenon of information technology did not emerge abruptly; rather, it is the result of historical developments and evolving human needs. The Fourth Industrial Revolution has accelerated the digitalization of commerce, enhancing efficiency while also introducing risks, such as data misuse and the proliferation of illegal online lending. Existing regulations are insufficient in protecting consumers due to weak law enforcement. The state has a constitutional obligation to safeguard the rights of its citizens. Therefore, legal protection for digital consumers must be strengthened through regulations that are responsive, fair, and adaptable to technological advancements. This study applies the theories of utilitarianism, the welfare state, legal protection, legal certainty, and developmental law. The findings of this research are as follows: 1) Fintech is the result of the interaction between technology and economic needs, serving as both a social and legal instrument to support public welfare; and 2) The urgency of regulating financial technology-based financial transactions in order to ensure legal protection for consumers in Indonesia has become increasingly apparent, considering that current law enforcement still relies on the Consumer Protection Law and the Criminal Code, rather than on the Financial Services Authority Regulation; 3) The reconstruction of a regulatory model for financial technology-based financial transactions aimed at consumer protection can be realized through the formulation of Government Regulations containing provisions on clear definitions, principles of transparency, consumer protection, data security, technical standards, supervisory and compliance mechanisms, the principle of inclusivity, as well as effective dispute resolution mechanisms and strict sanctions for violations.
Reconstruction, Regional Legal Products, Effectiveness.