City Council Ensures Regional Bonds to Be Included in 2027 Regional Budget Discussions

The Jakarta Regional People's Representative Council (DPRD) confirmed that the plan to issue regional bonds worth Rp 3.5 trillion will be discussed in the Draft General Policy of the Regional Budget and Temporary Budget Ceiling Priorities (KUA-PPAS) of the Jakarta Regional Budget for Fiscal Year 2027.

DPRD has already indirectly approved it

Chairman of Jakarta DPRD, Suhud Alynudin said the plan to issue regional bonds has been discussed by the Budget Committee (Banggar) and the Regional Government Budget Team (TAPD). The 2027 draft regional budget (APBD) is projected to reach Rp 81.34 trillion, with regional revenues of Rp 72.87 trillion and regional expenditures of Rp 73.82 trillion.

Regional Bonds Keep Jakarta's Finances Healthier

"The bond has already been included in the Budget Committee's (Banggar) discussions. So, in fact, the DPRD has already indirectly approved it. However, it could develop further during the discussions," he said.

According to him, subsequent discussions will be held in each commission to examine the feasibility of the 12 projects proposed to be financed through regional bonds, including opening up opportunities for alternative projects.

"Whether the 12 proposed projects are appropriate or there are other alternatives will be discussed in more depth in the commission and Budget Committee," he added.

Suhud emphasized that the issuance of regional bonds must be carefully prepared because it requires assistance and approval from the Ministry of Home Affairs (Kemendagri) and the Ministry of Finance (Kemenkeu).

He is also optimistic that the risk of default can be reduced as long as all stages are carried out in accordance with regulations and supported by good financial planning.

"This is long-term financing, up to seven years. Therefore, the financial plan must be well-structured to ensure payment obligations can be met," he explained.

Suhud stated that the Jakarta DPRD will oversee the entire regional bond issuance process. According to Suhud, bond proceeds may only be used to finance long-term or multi-year infrastructure projects that directly benefit the community and cannot be diverted for other purposes.

"These funds may not be used for other activities outside their intended use," he added.

Although there have been suggestions that bond funds could support council members' recess programs, their use must still comply with applicable regulations. Bonds are a public funding instrument with strict mechanisms.

"Because these are public funds, the Jakarta DPRD will oversee everything from the preparation stage, bond issuance, to the implementation of the funded projects. Projects must also be selected very selectively based on their intended use," he stated.