Subnational governments are often faced with limited fiscal capacity to finance development priorities, making them reliant on central government transfer funds. This has prompted the need to leverage innovative financing sources, including through issuances of municipal bonds and sukuk. While the regulatory frameworks have been introduced nearly two decades ago, there has yet to be any municipal bond issuance in Indonesia. The “Assessment on Indonesia’s Municipal Bond Landscape” explores the opportunities, constraints, potential issuers, and proposes recommendations to strengthen the enabling environment for subnational financing to achieve the Sustainable Development Goals (SDGs).