Pramono: Jakarta's Rp3.5 Trillion Municipal Bonds Draw Strong Investor Interest

Jakarta Governor Pramono Anung said the Jakarta Provincial Government's plan to issue Rp3.5 trillion in municipal bonds has received a strong response from investors.

A lot of investors showed up

He said the strong investor interest was driven by the size of Jakarta's regional budget (APBD).

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Pramono made the remarks while attending the Capacity Building event on municipal bond issuance at Tribrata Hotel & Convention Center, South Jakarta, on Tuesday (7/21).

"A lot of investors showed up. Jakarta's large regional budget is what attracts them," he said.

Pramono explained that the Jakarta Provincial Government has submitted a proposal to the Coordinating Ministry for Economic Affairs to issue municipal bonds. The plan has also been included in the 2027 General Budget Policy and Provisional Budget Priorities and Ceiling (KUA-PPAS) as an alternative source of development financing.

According to Pramono, the central government has approved the plan to issue the bonds in 2027. The proceeds will be used to finance long-term public service projects, including the LRT Jakarta Phase 1C Manggarai–Dukuh Atas, regional public hospitals, educational facilities, and other infrastructure.

"The funds will be used entirely for long-term public interests, not for consumptive spending," he asserted.

Through this creative financing scheme, Pramono aims to accelerate Jakarta's development without relying solely on the APBD. He cited the development of Bundaran HI area, Dukuh Atas pedestrian deck, and Bendera Pusaka Park as projects financed through similar mechanisms.

Jakarta City Council (DPRD) Chair Suhud Alynudin welcomed the city's efforts to explore funding sources beyond the APBD. He said the municipal bond plan represents an important breakthrough that could serve as a model for other regions.

"Jakarta DPRD fully supports efforts to explore funding alternatives beyond locally generated revenue. This is an important and historic breakthrough for Jakarta," he highlighted.

To support the initiative, the council has proposed establishing a legal framework to underpin non-APBD creative financing schemes.

"This initiative must be supported by a legal framework, whether through regulations or a regional bylaw, to facilitate the establishment of alternative financing institutions," Suhud noted.

The Capacity Building event was held to build a shared understanding of the planned municipal bond issuance. It brought together representatives from the Jakarta Provincial Government, the Jakarta City Council (DPRD), the Ministry of Home Affairs, the Coordinating Ministry for Economic Affairs, and the Ministry of State-Owned Enterprises (BUMN).