Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) continues to encourage regional governments for issuing municipal bond. Such direction has actually been regulated under the Minister of Finance Regulation No. 111/PMK.07/2012on Procedure for Issuing and Accounting Municipal Bond (Municipal Bond Regulation).
According to Nurhaida, Executive Chairperson for Capital Markets at the OJK, since the Municipal Bond Regulation was issued on 2012, there are no regional governments that issue municipal bond.
“In fact, there is not even a single municipal bond is issued until now,” says Mrs. Nurhaida in Jakarta on Thursday.
This is such regretful situation considering the importance of municipal bond for long-term funding, especially in financing infrastructure investment. Mrs. Nuhaida explains that municipal bond may become alternative to short-term funding through banking sector.
Nevertheless, Ms. Nurhaida further states that there are many regional governments that are having difficulties in issuing municipal bonds due to two main problems.
The first problem is the requirement to secure approval from Regional House of Representatives (DPRD) before the respective Regional Government may issue municipal bond. Mrs. Nurhaida recognizes that though this matter seems to be a procedural matter, such approval may be quite difficult to obtain in practice.
“To issue municipal bond, Regional Government must secure approval from DPRD, this is might be difficult,” adds Ms. Nurhaida.
The second issue is on prospectus of the municipal bond itself. Pursuant to Article 2 of the Municipal Bond Regulation, regional governments may only issue municipal bond if their financial report is categorized as unqualified or qualified opinion by the Audit Board of the Republic of Indonesia (BPK).
This provision, according to Ms. Nurhaida contradicts the Law No. 8 of 1985 on Capital Market, which requires financial report over a bond must be audited by registered accountant at OJK. As a solution, Mrs. Nurhaida suggests the BPK to appoint registered public accountant to perform audit on Regional Government’s financial report.
“Such measure may become one of the middle ground to overcome the issue,” Mrs. Nurhaida concludes.
(hot/kc)
Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) continues to encourage regional governments for issuing municipal bond. Such direction has actually been regulated under the Minister of Finance Regulation No. 111/PMK.07/2012on Procedure for Issuing and Accounting Municipal Bond (Municipal Bond Regulation).
According to Nurhaida, Executive Chairperson for Capital Markets at the OJK, since the Municipal Bond Regulation was issued on 2012, there are no regional governments that issue municipal bond.
“In fact, there is not even a single municipal bond is issued until now,” says Mrs. Nurhaida in Jakarta on Thursday.
This is such regretful situation considering the importance of municipal bond for long-term funding, especially in financing infrastructure investment. Mrs. Nuhaida explains that municipal bond may become alternative to short-term funding through banking sector.
Nevertheless, Ms. Nurhaida further states that there are many regional governments that are having difficulties in issuing municipal bonds due to two main problems.
The first problem is the requirement to secure approval from Regional House of Representatives (DPRD) before the respective Regional Government may issue municipal bond. Mrs. Nurhaida recognizes that though this matter seems to be a procedural matter, such approval may be quite difficult to obtain in practice.
“To issue municipal bond, Regional Government must secure approval from DPRD, this is might be difficult,” adds Ms. Nurhaida.
The second issue is on prospectus of the municipal bond itself. Pursuant to Article 2 of the Municipal Bond Regulation, regional governments may only issue municipal bond if their financial report is categorized as unqualified or qualified opinion by the Audit Board of the Republic of Indonesia (BPK).
This provision, according to Ms. Nurhaida contradicts the Law No. 8 of 1985 on Capital Market, which requires financial report over a bond must be audited by registered accountant at OJK. As a solution, Mrs. Nurhaida suggests the BPK to appoint registered public accountant to perform audit on Regional Government’s financial report.
“Such measure may become one of the middle ground to overcome the issue,” Mrs. Nurhaida concludes.
(hot/kc)