THE OBSTACLES AND SOLUTIONS OF SHARIA MUNICIPAL BOND ISSUANCE FROM AN INDONESIAN LEGAL PERSPECTIVE

Abstract

According to the Law No. 23 year 2014 on the Local Governance, The Local Government has opportunities to obtain the loan from the public through Municipal Bond Issuance in order to enhance their Local Development. However, Municipal Bond Issuance contradict with Sharia Principles due to Municipal Bond not containing Sharia Compliance. In addition, there are many obstacles faced by the Local Government with the issuance of Sharia Municipal Bond, either during the preparation of Pre-Registration Statement of the Sharia Municipal Bond Issuance or the preparation of Public Offering of Sharia Municipal Bond in the Capital Market. The problems that discussed in this research are: (1) What are the obstacles of Local Government in terms of Sharia Municipal Bond? and (2) What are the solutions from the Related Parties in order to Synchronize and Harmonize the regulation related to Sharia Municipal Bond Issuance? This thesis use secondary data taken from the documents or archives that related to the problem discussed. The approach of thesis is juridical normativeempirical research. The best solutions for this obstacles may be provided by the Related Parties such as Ministry of Finance, Ministry of Local Affairs, Otoritas Jasa Keuangan (OJK), Majelis Ulama Indonesia (MUI), Komisi Pemberantasan Korupsi (KPK), and Badan Pemersika Keuangan (BPK) to revise the technical regulation regarding Sharia Municipal Bond Issuance, both in the outlook of preparation and in the scope of the registration statement by synchronizing and harmonizing the current technical regulation with Law of Sharia Sovereignty Bond and Law of the Financial Examiner Body. The recommendation in this thesis are Revise the Capital Market Law, add the provision of Sharia Municipal Bond Issuance in the legislation that related, and create the law regarding Government Procurement of goods and services.