FINANCING REPORTS ANALYSIS THROUGH REGIONAL BONDS: CASE STUDY OF INDRAMAYU, INDONESIA

Abstract

This study aims to analyze the feasibility of the Indramayu Regency Government in issuing regional debt securities (bonds) as an alternative development financing. Based on Law Number 23 of 2014 concerning Regional Government, regional governments are required to achieve fiscal independence, but still face limited funding sources. The majority of regional revenues still depend on central government transfer funds, such as Revenue Sharing Funds (DBH), General Allocation Funds (DAU), and Special Allocation Funds (DAK), while Regional Original Income (PAD) is relatively limited. This condition encourages the need to optimize regional financing potential. Indramayu Regency was chosen as the research object because, based on data from the Central Statistics Agency (BPS) of West Java for 2023–2024, it is the regency with the highest poverty rate in West Java. This study uses a descriptive qualitative method with an analytical approach to three aspects: legal, organizational, and financial. The results show that the Indramayu Regency Government obtained a feasibility score of 75%, indicating that this region is eligible to issue regional debt securities (bonds) as a source of development financing, especially infrastructure, to encourage economic growth and support poverty alleviation efforts.