Jakarta Set to Launch Historic Municipal Bonds, Pramono Says
Reported by Dessy Suciati | Translated by Nugroho Adibrata
Jakarta is consistently breaking new ground in regional funding by leveraging creative financing. Several innovative schemes are already in the pipeline, with municipal bonds leading the way as a key instrument.
We are making history this year,
Jakarta Governor Pramono Anung has unveiled plans for a strategic Rp 3.5 trillion municipal bond issuance. He announced the move as the primary speaker at the Investor Daily Roundtable, held at the Indonesia Stock Exchange on Wednesday (7/1).
"We are making history this year by launching our first-ever municipal bonds, a pioneering move for this country. We are issuing Rp 3.5 trillion in Jakarta bonds,” he expressed.
Pramono Urges Jakarta Officials to be Bold in Decision-MakingThe funds will be channeled into high-impact priority projects, including transportation, healthcare, education, social housing, water resources, flood mitigation, and government infrastructure.
"How will we use this Rp 3.5 trillion? It is primarily for education. It will also provide the seed funding for the Sumber Waras Hospital project, alongside other key educational programs in Jakarta," he noted.
Pramono pledged that the funds raised from these bonds will be used entirely for essential public services rather than BUMD commercial ventures. He remains optimistic that the market will show a strong appetite for Jakarta’s inaugural municipal bonds.
"Regarding commercial ventures, I want them handled strictly through the city budget for greater transparency. This remains my stance, despite the fact that many of our BUMDs are increasingly robust and financially sound,” he added.
He pointed to PAM Jaya’s strengthening finances as a result of top-tier professional governance.
"My stance is firm: Jakarta’s BUMDs are strictly off-limits to outside influence. Professionalism is non-negotiable, right down to the recruitment," he stated firmly as he wrapped up.
