Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


The Concept of Economic Analysis of Law on Municipal Bonds as a Source of Financing of Regional Infrastructure Development in Indonesia

Author(s): Tatan Pria Sudjana, An An Chandrawulan, Isis Ikhwansyah, Indra Perwira

The issuance of municipal bonds by local governments in Indonesia raises the phenomenon of difficulty in making decisions in formulating strategies for resource utilization that are under the responsibility of local governments. Contractual protection in investment in municipal bonds implies the mutual integration of economics and law in realizing public order because challenges in morality problems develop as threats to people's lives, which include the inverse between price and output, the opportunity cost of alternatives, and the tendency for resources to attract from lower to a higher value. Based on the descriptions above, for further exploration of the problem of implementing Municipal bonds as financing for regional infrastructure development, this study was conducted to analyze facts related to the implementation of municipal bonds as financing for regional infrastructure development in Indonesia based on the concept of economic analysis of law. This study uses normative juridical research by using a social-legal research approach. The results of this study reveal that the concept of economic analysis of law is a concept especially for the settlement of the default event of municipal bonds contract which is based on economics with three basic principles, namely value, usefulness, and efficiency.

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