Making the Innovation of Smartcity through Municipal Bond Publishing

The purpose of this paper is to know the various obstacles in the issuance of municipal bonds by local governments as well as the relationship of problem solving on the publication. The research methodology of the study was conducted in a way to verify data obtained from local and central government then tried to problem solving with a similar pattern of comparison in the State of Malaysia. Primary and secondary data are then analyzed and evaluated normative juridical. Finding of the research conducted by the Capital Market Supervisory Board there is a trend of positive law concerning the issuance of municipal bonds has been made yet implemented by the Central Government Local Government appear inconsistencies. Excessive licensing process by the Central Government is not in line with rational quality, readiness and potential of the region. Quantity areas analyzed at the time a row is Jembrana Local Government, Local Government Bandar Lampung, Medan Local Government andLocal Government Tabanan. Problem of availability of funds for regional development is one of the main things that faced by all regions of the world, especially developing countries, including Indonesia. Utilization of funds from the public contributes to the success of regional development, especially through alternative municipal bond issuance. All elements of both investors Local Government and the Center have important role aspects. The role of the central government initiated since the manufacture of various statutory provisions and licensing provision relating to the issuance process. Local Government as the publisher and owner of the project, while investors concerned about the return on investment funds according the agreement between them. Knowledge of good financial management area and also the position of the object transparent collateral is one of the important things as a form of responsibility for Local Government in the event of default.