Legal uncertainty of municipal bond issuance: a case study of Indonesia and Vietnam

Abstract

Purpose This study aims to analyze the causes and implications of legal uncertainty in the issuance of conventional municipal bonds in Indonesia and to draw lessons from Vietnam’s approach in providing better legal certainty. Design/methodology/approach This study adopts a normative legal method with a legislative approach and applies a comparative approach. Data sources involve primary and secondary legal materials from both Indonesia and Vietnam. Findings The legal uncertainty is caused by a lack of coherence and consistency in legislation. Based on Vietnam’s experience, Indonesia can gain valuable insights related to providing strong legal certainty for parties involved in issuing or investing through conventional municipal bonds. Research limitations/implications This study focuses on the comparative legal analysis of conventional municipal bonds in Indonesia with Vietnam. Practical implications This research provides recommendations for the refinement of legislation regarding conventional municipal bonds to the government. Social implications This study is related to legal certainty as a strategy to attract investment through municipal bonds and to ensure the municipal bond issuance process is transparent and efficient. Originality/value This study provides a comparative perspective on the issuance of municipal bonds in Indonesia, with a special focus on Vietnam, emphasizing the urgency of harmonization in legal regulation and the sustainability of legal certainty.