Abstract
Regional bonds are an alternative for local governments to obtain funds to finance regional development. In the process of issuing bonds, collateral is needed in the form of regional assets to ensure the fulfillment of investors' rights. Although the guarantee for the issuance of regional bonds has been regulated in Article 55 of Law no. 33 of 2004 concerning Fiscal Balance between the Central Government and Regional Governments, its implementation will be difficult to do because there is a prohibition on confiscation of state assets as regulated in Article 50 of Law No.1 of 2004 concerning State Treasury. This paper aims to examine the disharmony of the regulation on guarantees in the issuance of regional bonds. Based on the discussion, it can be concluded that the issue of disharmony related to guarantees in regional bonds can be answered by making legal discoveries, namely by identifying and interpreting the relevant regulations. If the regional government acts in its capacity as a public legal entity that carries out civil actions, it must comply with the provisions of civil law. Regional assets that are used as collateral in the issuance of regional bonds are state-owned assets classified as separated state-owned assets so that the regional government assets are no longer attached to state property, and if there is a default on regional bonds, these assets can be confiscated for auction. to fulfill the rights of investors by setting aside the provisions of Article 50 of the State Treasury Law. Keywords: regional onds, guarantees, regional assets DOI: 10.7176/JLPG/115-08 Publication date: November 30 th 2021
Highlights
Regional autonomy aims to accelerate the realization of welfare for the community through improving the quality of public services
If the regional government acts in its capacity as a Public Legal Entity that carries out civil actions, it must comply with the provisions of civil law
The disharmony of regulations relating to the guarantee provisions as regulated in Article 1131 of the Civil Code and Article 55 of Law no. 33 of 2004 concerning Fiscal Balance between the Central Government and Regional Governments with provisions concerning the prohibition of confiscation of state assets as regulated in Article 50 of Law No 1 of 2004 concerning State Treasury can be resolved by making legal discoveries by identifying and interpreting all provisions that related
Summary
Regional autonomy aims to accelerate the realization of welfare for the community through improving the quality of public services. Regional economic development in the era of regional autonomy is very dependent on how the Regional Government plans its regional activities.. Judging from the APBD posture, the main source of regional funding is still largely dependent on the central government, especially from balancing funds (consisting of General Allocation Funds, Revenue Sharing Funds and Special Allocation Funds) amounting to 60% of regional revenues.. To encourage regions to increase their regional capacity, the central government has established a general policy on regional transfers with the aim that regional governments can explore their own regional revenue. Other policies that are being encouraged are reducing the disparity in sources of government funding between the center and the regions as well as financing autonomy, among others, by issuing regional bonds
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