Regional Bonds Keep Jakarta's Finances Healthier

Jakarta Governor Pramono Anung stated that the issuance of Rp 3.5 trillion in regional bonds was carried out to ensure Jakarta's finances are healthier.

Definitely be able to do it

This regional bond is a form of creative financing, the proceeds of which will support various public service projects. The Jakarta bond is planned to be issued next year with a seven-year term.

Regional Bonds: A Historic Breakthrough for Jakarta's Financing

This was conveyed by Pramono at the Jakarta Budget Talks event with the theme Navigating the Jakarta Regional Budget: Strengthening Performance, Safeguarding Public Interests at the Balairung, Jakarta City Hall, Wednesday (7)22).

"Despite cuts to the DBH (Regional Revenue Sharing Fund), we are implementing creative financing to make Jakarta's finances much healthier, more transparent, and open. That's why the minimum tenor is seven years, and the funding is being implemented transparently," said Pramono.

Pramono explained that these regional bonds are designed as a financing alternative amidst the current fiscal conditions, which involve adjustments to the Regional Revenue Sharing Fund (DBH). He believes this alternative financing scheme will serve as a model for other regions.

"If this is successful and becomes a creative financing instrument, I am sure this can be copied in other regions and that will be a good thing," he explained.

Regarding the coupon amount, Pramono confirmed it was within the safe limits of the regional budget. He also believes that the issuance of regional bonds will benefit the community.

"Regarding how much interest will be paid and so on, the point is that Jakarta will definitely be able to do it," he stated.