Regional Bond as a Regional Development Resource (Case Study on the Bali Government)

doi:10.7176/jlpg/117-05

Abstract

The Province of Bali is a tourist area that is well known throughout the world, so that the issuance of regional bonds in the Province of Bali to develop the development of the tourism sector is the right step. Philosophically, the purpose of development carried out by the region has one goal, namely to create a prosperous life in accordance with the values of Pancasila. The emergence of bonds that refer to creative and constructive bonds that can provide added value and become a stimulus for regional economic development efforts through policies and further studies. The purpose of this study is to: (a) examine the nature of regional bonds in regional development (b) examine the regulation of the issuance of regional bonds as a resource for regional development in Bali. This research method uses normative legal law research type. The results of this study indicate that the Demand Side of Bali's Economic Construction in the first quarter of 2020 from the demand side stems from negative growth in the performance of foreign exports, investment and government consumption. Meanwhile, private consumption needs, the consumption component in the reporting period grew 2.25% (yoy), lower than the previous quarter's 6.58% (yoy), stemming from contraction in government consumption and slowing household consumption. In addition, the consumption performance of LNPRT also contracted during the quarter under review. The performance of private consumption, namely household consumption and LNPRT consumption, was restrained during the quarter under review. Household consumption grew by 2.90% (yoy) in the first quarter of 2020, lower than 5.70% (yoy) in the previous quarter. Meanwhile, the consumption performance of LNPRT decreased from 6.00% (yoy) to -4.67% (yoy). On the other hand, the slowdown in household consumption performance in the quarter under review was caused by restrained purchasing power in line with the decline in tourism performance in the midst of the COVID-19 pandemic. Keywords: Regional Bonds, Development Resources, Bali Province DOI: 10.7176/JLPG/117-05 Publication date: January 31 st 2022

Highlights

The Province of Bali is a tourist area that is well known throughout the world, so that the issuance of regional bonds in the Province of Bali to develop the development of the tourism sector is the right step
Private consumption needs, the consumption component in the reporting period grew 2.25%, lower than the previous quarter's 6.58%, stemming from contraction in government consumption and slowing household consumption
The slowdown in household consumption performance in the quarter under review was caused by restrained purchasing power in line with the decline in tourism performance in the midst of the COVID-19 pandemic

Summary

Introduction

The province of Bali is a tourist area that is well known throughout the world, so the issuance of regional bonds for the Province of Bali to develop the development of the tourism sector is the right step. As a legal state, the issuance of regional bonds certainly cannot be separated from regulations and there is a need for certainty that protects the parties. For the region the loss has been anticipated with strict procedures in the issuance of bonds. The nominal amount of regional debt through the issuance of bonds has been limited and based on the amount of the previous RAPBD. Bond funds must be used for development programs that provide benefits to the region, not development programs that do not have investment value

Objectives

Results

Conclusion