A problem statement in a research proposal succinctly identifies the issue

or challenge that the research aims to address.

Here's an example of a problem statement for a research proposal on debt

management and fiscal sustainability at the local government level in
Indonesia:

"Indonesian local governments face significant challenges in managing debt

effectively while ensuring long-term fiscal sustainability. Rapid urbanization,
infrastructure development needs, and limited revenue sources have led to
escalating debt levels among local administrations, raising concerns about
their ability to meet financial obligations and deliver essential services.
Inadequate debt management practices, coupled with governance deficiencies
and policy constraints, further exacerbate these challenges, posing risks to the
stability and development prospects of local communities.

Therefore, there is an urgent need for comprehensive research to understand

the factors driving debt accumulation, assess the effectiveness of current debt
management frameworks, and propose policy recommendations to enhance
fiscal resilience and sustainable development outcomes at the local
government level in Indonesia."

When formulating a research proposal, it's essential to review existing literature to

identify gaps and areas where further research is needed. Here's an overview of
potential literature and research gaps related to debt management and fiscal
sustainability at the local government level in Indonesia:

1. Literature Review:
 Review studies examining debt management practices and fiscal
sustainability in Indonesian local governments.
 Explore research on the impact of decentralization policies on local
government finances and debt dynamics in Indonesia.
 Examine literature discussing governance mechanisms, institutional
arrangements, and policy interventions aimed at strengthening debt
management frameworks and promoting fiscal resilience among local
administrations.
  Investigate studies that analyze the relationship between debt levels,
revenue generation capacity, and expenditure management in Indonesian
local governments.
 Review research on the implications of debt accumulation for service
delivery outcomes, infrastructure development, and economic growth at
the local level.
2. Research Gap:
 Despite some studies on debt management and fiscal sustainability in
Indonesia, there is a lack of comprehensive research focusing specifically
on these issues at the local government level.
 Existing literature may provide insights into broad trends and challenges
but often lacks detailed analyses of governance mechanisms, institutional
arrangements, and policy interventions relevant to debt management at
the local level.
 There is a need for empirical studies that examine the effectiveness of
current debt management practices and governance structures in
Indonesian local governments.
 Limited research has explored the impact of debt levels on service delivery
outcomes, infrastructure investment, and community welfare in different
regions of Indonesia.
 There is a gap in understanding the role of governance quality,
transparency, and accountability in shaping debt management practices
and fiscal sustainability at the local government level.
 Research focusing on policy recommendations and strategies tailored to
the Indonesian context, considering the diversity of local governments and
regional disparities, is lacking.

By addressing these research gaps, the proposed study can contribute to the existing
literature by providing empirical evidence, practical insights, and policy
recommendations to strengthen debt management frameworks and promote fiscal
resilience among Indonesian local governments.