Skip to main content
Original Research Article Open Access SINTA 2 Accredited

Actionable Insights of Policy on Debt Management Units for Effective Regional Bond and Business Environment

Comparative Study of Indonesia and Mexico

Authors

  • Septiana Dwiputrianti 1* Corresponding author
  • Bahril Putra Ardian 1
  • Vivian Kadelbach 2
DOI
10.21787/jbp.17.2025.103-119
Published & Pages
30 April 2025 · pp. 103-119
Manuscript History
Received13 Mar 2025 Published30 Apr 2025
License
CC Attribution-NonCommercial-ShareAlike 4.0
Read PDF 202 KB Cite

401 Views 444 Downloads

Abstract

Effective public policy debt management through Debt Management Units (DMUs) is essential for regional governance and economic development. Compared with Mexico, the study focuses on actionable policy insights and the importance of DMUs in effective regional bond issuance and business environment improvement in Indonesia. The primary objective is to enhance the operational effectiveness of DMUs to facilitate successful bond issuance and improve the local business environment. The study used a qualitative research methodology to gather comprehensive insights and involved semi-structured interviews with key stakeholders, observations, and document analysis. Findings reveal that DMUs are crucial in coordinating debt strategies and managing risks; however, their effectiveness is often compromised by inadequate human resources, unclear organizational structures, and regulatory constraints. The study proposes actionable solutions, such as investing in human resource development, establishing clear Standard Operating Procedures (SOPs), and advocating for balanced regulatory reforms. These findings contribute significantly to public governance and policy by highlighting the importance of enhancing DMU performance for sustainable economic growth. The research emphasizes a multifaceted approach integrating human resource capacity, organizational clarity, and stakeholder engagement. By addressing the specific context of local government, this study provides valuable insights for policymakers and practitioners, promoting effective public finance management and fostering a favorable investment climate. The proposed recommendations aim to empower DMUs, ensuring they can fulfil their vital regional governance and economic development functions.

Keywords:

Read the Full Text

The full text of this article is available as PDF. Version of record published in Vol. 17 No. 1 (2025).

Open PDF

References

39 references
  1. Abubakar, A. B., McCausland, W. D., & Theodossiou, I. (2025). Do Debt Relief and Fiscal Rules Improve Public Debt Sustainability? The Experience of Sub-Sahara African Countries. Journal of Policy Modeling, 47(1), 166–186. https://doi.org/10.1016/j.jpolmod.2024.06.007
  2. Arifin, S. (2021). Disharmony of Regional Bond Issuance Guarantee. Journal of Law, Policy and Globalization, 115, 49–54. https://doi.org/10.7176/JLPG/115-08
  3. Baldi, F., & Pandimiglio, A. (2022). The Role of ESG Scoring and Greenwashing Risk in Explaining the Yields of Green Bonds: A Conceptual Framework and an Econometric Analysis. Global Finance Journal, 52, 100711. https://doi.org/10.1016/j.gfj.2022.100711
  4. Dottori, D., & Manna, M. (2016). Strategy and Tactics in Public Debt Management. Journal of Policy Modeling, 38(1), 1–25. https://doi.org/10.1016/j.jpolmod.2015.12.003
  5. Fahamsyah, M. H., Soejarminto, Y., Yaqin, H. A., & Rakhmat, A. S. (2023). Analytic Network Process (ANP) Method: Factor Analysis of the Non-Implementation of Municipal Islamic Bonds in Sukuk Potential Areas in Indonesia. East Asian Journal of Multidisciplinary Research, 2(8), 3305–3322. https://doi.org/10.55927/eajmr.v2i8.5409
  6. Faraglia, E., Marcet, A., Oikonomou, R., & Scott, A. (2019). Government Debt Management: The Long and the Short of It. The Review of Economic Studies, 86(6), 2554–2604. https://doi.org/10.1093/restud/rdy061
  7. Fusco, F., Pavone, P., & Ricci, P. (2024). Strengthening Accountability and Sustainability Reporting: Does Stakeholder Engagement Really Work? Evidence From the Judicial Sector. Social Responsibility Journal, 20(5), 1015–1039. https://doi.org/10.1108/SRJ-05-2023-0248
  8. Garriott, C., Lefebvre, S., Nolin, G., Rivadeneyra, F., & Walton, A. (2020). Alternative Futures for Government of Canada Debt Management. Journal of Financial Economic Policy, 12(4), 659–685. https://doi.org/10.1108/JFEP-07-2019-0149
  9. Goes, I., & Kaplan, S. B. (2024). Crude Credit: The Political Economy of Natural Resource Booms and Sovereign Debt Management. World Development, 180, 106645. https://doi.org/10.1016/j.worlddev.2024.106645
  10. Goetz, J. W., & Grable, J. E. (Eds.). (2015). Debt Management. In Financial Planning Competency Handbook (pp. 127–135). Wiley. https://doi.org/10.1002/9781119642497.ch14
  11. Hanif, M. N. (2002). Public Debt Management. MPRA Paper. https://ideas.repec.org/p/pra/mprapa/10212.html
  12. Hutahayan, B., Fadli, M., Amimakmur, S. A., & Dewantara, R. (2024). Harmonizing Municipal Bond Regulations: Enhancing Legal Certainty and Sustainable Development in Indonesia Through International Practices. WSEAS Transactions on Environment and Development, 20, 987–1002. https://doi.org/10.37394/232015.2024.20.90
  13. Hutahayan, B., Fadli, Moh., Amiputra, S., & Dewantara, R. (2023). The Research Developments and Trend of Municipal Bonds: A Bibliometric Analysis. WSEAS Transactions on Business and Economics, 20, 1218–1236. https://doi.org/10.37394/23207.2023.20.108
  14. Idris, B. A., & Nurudeen, A. O. (2024). Public Debt Crisis, Causes and Strategies of Debt Management in Nigeria. Top Journal of Economics and Finance, 9(6), 14–25. https://doi.org/10.5281/zenodo.14616003
  15. Ivanov, I. T., Zimmermann, T., & Heinrich, N. W. (2025). Limits of Disclosure Regulation in the Municipal Bond Market. Management Science, 71(10), 8452–8470. https://doi.org/10.1287/mnsc.2022.02289
  16. Jessica, O. N., Ifeoma, O. S., Dikeogu-Okoroigwe, C. C. F., & Osmond, O. N. (2024). Public Debt Management Strategies in an Open Economy. IIARD International Journal of Economics and Business Management, 10(10), 84–95. https://doi.org/10.56201/ijebm.v10.no10.2024.pg84.95
  17. Jonek-Kowalska, I., & Wolniak, R. (2021). The Influence of Local Economic Conditions on Start-Ups and Local Open Innovation System. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 110. https://doi.org/10.3390/joitmc7020110
  18. Khurria, A. (2023). Mengapa Pemerintah Daerah Belum Berhasil Menerbitkan Obligasi Daerah. Jurnal Syntax Admiration, 4(5), 594–611. https://doi.org/10.46799/jsa.v4i5.595
  19. Liang, S. (2025). The Triple Direction of Local Government Debt Governance in the Perspective of Government Credit. Asia Pacific Economic and Management Review, 2(2), 1–6. https://doi.org/10.62177/apemr.v2i2.233
  20. Megersa, K., & Cassimon, D. (2015). Public Debt, Economic Growth, and Public Sector Management in Developing Countries: Is There a Link? Public Administration and Development, 35(5), 329–346. https://doi.org/10.1002/pad.1733
  21. Monteiro, A. L., Belo, T. F., & Amaral, A. M. (2023). Impact of Financial Management Practices and Financial Literacy on Micro, Small and Medium Enterprises (MSMEs) Growth (Case Study at Restaurants in Dili, Timor-Leste). Timor Leste Journal of Business and Management, 5(2), 57–69. https://doi.org/10.51703/bm.v5i0.141
  22. Mustapha, S., & Prizzon, A. (2015). Debt Sustainability and Debt Management in Developing Countries. Overseas Development Institute.
  23. Nielsen, M. E., & Madsen, C. Ø. (2022). Stakeholder Influence on Technical Debt Management in the Public Sector: An Embedded Case Study. Government Information Quarterly, 39(3), 101706. https://doi.org/10.1016/j.giq.2022.101706
  24. Ojukwu, P. U., Cadet, E., Osundare, O. S., Fakeyede, O. G., Ige, A. B., & Uzoka, A. (2024). Advancing Green Bonds Through FinTech Innovations: A Conceptual Insight Into Opportunities and Challenges. International Journal of Engineering Research and Development, 20(11), 565–576.
  25. Orisadare, M. A., Falade, O. E., & Fasoye, K. (2025). The Threshold Level of Fiscal Policy Instruments that can Promote Economic Development in Mexico, Indonesia, Nigeria and Turkey. British Journal of Multidisciplinary and Advanced Studies, 6(1), 100–114. https://doi.org/10.37745/bjmas.2022.04242
  26. Ortiz, G. (2012). What Can the Developed World Learn from the Latin American Debt and Mexican Peso Crisis? Business Economics, 47(1), 2–13. https://doi.org/10.1057/be.2011.30
  27. Pedersoli, S., & Presbitero, A. F. (2023). Public Debt Management and Private Financial Development. Economic Systems, 47(1), 101010. https://doi.org/10.1016/j.ecosys.2022.101010
  28. Rafindadi, A. A., & Musa, A. (2019). An Empirical Analysis of the Impact of Public Debt Management Strategies on Nigeria’s Debt Profile. International Journal of Economics and Financial Issues, 9(2), 125–137. https://www.econjournals.com/index.php/ijefi/article/view/7672
  29. Revilla, E. (2013). Subnational Debt Management in Mexico: A Tale of Two Crises. In Until Debt Do Us Part (pp. 145–176). The World Bank. https://doi.org/10.1596/9780821397664_CH04
  30. Rommerskirchen, C., & van der Heide, A. W. (2023). The Quiet Side of Debt: Public Debt Management in Advanced Economies. Socio-Economic Review, 21(2), 1151–1170. https://doi.org/10.1093/ser/mwac070
  31. Salato, R., Gomes, P., & Ferreira, C. (2024). Accrual Accounting in the Public Sector of Emerging Economies: Bibliometric Analysis and Future Research. Public Money & Management, 44(5), 376–388. https://doi.org/10.1080/09540962.2023.2200968
  32. Slav’yuk, R., & Slaviuk, N. (2018). Government Debt Management: Challenges and Perspectives. Investment Management and Financial Innovations, 15(3), 143–156. https://doi.org/10.21511/imfi.15(3).2018.12
  33. Sutjiatmo, B. P., Murti, A. K., Widodo, A., Kurniawan, M. S., & Endrawati, T. (2022). Identification of Economic Management Best Practices to Improve National Financial Development for Developing Countries. International Journal of Business, Economics & Management, 5(4), 316–327. https://doi.org/10.21744/ijbem.v5n4.1987
  34. Vértesy, L. (2020). Debt Management Strategies of Local Governments in the EU. Pro Publico Bono - Magyar Közigazgatás, 8(1), 146–169. https://doi.org/10.32575/ppb.2020.1.8
  35. World Bank Group. (2024). Debt Management Reform Plan. In World Bank Group. World Bank Group.
  36. Yu, P., Xu, H., & Chen, J. (2024). Double Asymmetric Impacts, Dynamic Correlations, and Risk Management Amidst Market Risks: A Comparative Study between the US and China. Journal of Risk and Financial Management, 17(3), 99. https://doi.org/10.3390/jrfm17030099
  37. Zahariev, A. (2012). Debt Management. Abagar Publishing Haus. https://doi.org/10.13140/RG.2.1.4872.3607
  38. Zhang, J., Li, L., Yu, T., Gu, J., & Wen, H. (2020). Land Assets, Urban Investment Bonds, and Local Governments’ Debt Risk, China. International Journal of Strategic Property Management, 25(1), 65–75. https://doi.org/10.3846/ijspm.2020.13834
  39. Zhang, S., Samsi, A. B., Wang, T., & Du, Z. (2024). The Impact of Local Government Debts on Economic Growth in China: From the Perspectives of General Obligation Bonds and Revenue Bonds. Multidisciplinary Science Journal, 6(11), 2024247. https://doi.org/10.31893/multiscience.2024247

Author Biographies

  • Bahril Putra Ardian · Politeknik STIA LAN Bandung

    Bahril is Alumni from Politeknik STIA LAN Bandung and worked for West Java Province, Indonesia 

  • Vivian Kadelbach · Universidad Anáhuac

    Prof. Vivian Kadelbach

    https://orcid.org/0000-0002-8008-3402 

    Profesora investigadora, Universidad Anahuac Mexico

    Email: vkadelback@anahuac.mx

    Phone: +52 5566952106

    Affiliations

    • Universidad Anáhuac México Norte, 2011-01 to present Profesora Investigadora employment
    • Daimler Financial Services AG, 2006-01 to 2008-01 Chief of Staff employment

    Key Dates

    • Record created Feb 1, 2017
    • Last updatedJan 26, 2018

    Education And Qualifications

    • Universidad Anáhuac México Norte, 2008-01 to 2010-12 Ph.D. education
    • Arizona State University Thunderbird School of Global Management, 2003 01 to 2004-01 MBA education
    • Université de Fribourg Département de gestion, 1991-09 to 1996-02 Lic. rer. pol. Education

Copyright & Open Access License

Copyright (c) 2025 Author(s). This article is licensed under CC Attribution-NonCommercial-ShareAlike 4.0.