Legal Counseling on Online Transactions from the Perspective of Islamic Law, PBB-P2, and MSMEs in Timbulharjo Village, Bantul

On Thursday, July 16, 2026, the Faculty of Law, Universitas Gadjah Mada (FH UGM), through its Legal Consultation and Aid Center (PKBH), in collaboration with the High Prosecution Office of the Special Region of Yogyakarta (Kejati DIY), successfully organized the "Suluh Praja" Legal Counseling Program at the Timbulharjo Village Office, Bantul Regency. This program represents a continued synergy between FH UGM academics and Kejati DIY officials to enhance public legal awareness.

The event commenced with warm welcoming remarks from the Head of Timbulharjo Village, marking the beginning of this collaboration. The event continued with a presentation on the Duties and Authorities of the Civil and State Administrative Division (Datun) of the High Prosecution Office of the Special Region of Yogyakarta, delivered by the Kejati DIY team, namely Ms. Lina Juswanti, S.H., and Ms. Ana Muflikah, S.H.

Entering the core session, Dr. Khotibul Umam delivered an in-depth presentation on "Online Transactions in the Perspective of Islamic Law." In his presentation, he explained that financial digitalization brings specific challenges, requiring citizens to be vigilant in avoiding prohibited practices such as usury (riba), online gambling, and illegal online loans, which play a highly detrimental role as triggers for domestic economic instability. Dr. Khotibul outlined fundamental solutions to the challenges of economic digitalization, namely the application of fair Islamic muamalah principles and the utilization of official Islamic financial institutions or fintech services. He emphasized the importance of public vigilance in digital transactions as a tangible contribution to local socio-economic resilience, particularly in Bantul Regency.

The second session continued with a presentation on the regulations of Rural and Urban Land and Building Tax (PBB-P2) and Income Tax (PPh) for MSMEs by Dr. Arvie Johan. In his presentation, he highlighted the special PBB-P2 tariff policy for agricultural production land to protect local food security. Dr. Arvie also elaborated on the Final PPh exemption rule for individual MSMEs with an annual turnover below Rp500 million, as well as the 0.5% tariff for businesses above the threshold.

Following the presentations, the event proceeded to an interactive discussion and question-and-answer session. The Timbulharjo village officials demonstrated great enthusiasm by raising various questions regarding the mitigation of illegal online loan traps for citizens, as well as issues concerning village asset management and taxes for MSME actors in their area. The speakers provided comprehensive answers based not only on the latest regulations but also offering practical, solution-oriented perspectives for problems at the village level

This event is expected to contribute to the achievement of the Sustainable Development Goals (SDGs), particularly in the areas of Quality Education (SDG 4), Decent Work and Economic Growth (SDG 8), Sustainable Cities and Communities (SDG 11), and Peace, Justice, and Strong Institutions (SDG 16), starting from village government administration. Through this tangible contribution, FH UGM continues to implement the Tri Dharma of Higher Education in the form of community service.

Author : Sahil Jibran Efendi (PKBH FH UGM)

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