Regional Bonds: A Historic Breakthrough for Jakarta's Financing

The Chairman of the Jakarta Regional People's Representative Council (DPRD), Suhud Alynudin, welcomed the plan of the Jakarta Provincial Government to issue regional bonds which have received approval from the Coordinating Ministry for the Economy.

Alternative funding outside of Regional Original Income

Currently, the proposal has been submitted to the Jakarta DPRD and is included in the discussion of the General Policy of the Regional Budget and the Temporary Budget Priorities and Ceiling (KUA-PPAS) of the 2027 Regional Budget.

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"The Jakarta DPRD certainly welcomes the government's efforts to seek alternative funding outside of Regional Original Income (PAD)," said Suhud.

According to him, the issuance of regional bonds represents a significant breakthrough and a historic step for Jakarta in expanding development funding sources. He hopes the scheme will serve as a model for other regional governments in Indonesia.

"Jakarta is also preparing various other creative funding schemes. Of course, all of these schemes must be supported by a strong legal basis, either in the form of regional regulations or other regulations," he added.

Suhud emphasized that the Jakarta DPRD is ready to encourage the drafting of various regional regulations needed to support the presence of alternative financial institutions as sources of development financing in the capital.

"We hope that all these efforts will run well so that Jakarta has a sustainable alternative funding model and can become an example for regional development throughout Indonesia," he hoped.