Commission D Pledges Rigorous Analysis of Municipal Bonds

Jakarta City Council Commission D Chairwoman, Yuke Yurike announced that the proposal to finance key infrastructure through regional bonds will undergo further deliberation during the City Budget (APBD) drafting process.

All these activities must continue

According to Yuke, most of the 12 proposed programs fall under the jurisdiction of Commission D. These are critical multi-year projects that have been underway since 2024 or 2025 and require continued funding to reach completion.

"These programs are proposed because they are already in progress and must be sustained. However, whether they will all be approved for bond financing remains to be seen," she expressed, Monday (8/3)

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She clarified that while regional agencies identify projects for continuation, the final screening for bond eligibility rests with the Regional Financial Management Agency (BPKD) or the Regional Development Planning Agency (Bappeda).

Her party has yet to make a final decision on which projects will receive bond financing. Detailed and rigorous deliberations are scheduled to take place during the Draft APBD 2027 discussions.

Yuke emphasized that all priority programs must proceed as planned. Should bond financing prove unfeasible, the Jakarta government is prepared to weigh alternative funding sources following prevailing regulations.

She further reminded that this regional bond issuance would be the first of its kind in Indonesia, necessitating an exceptionally cautious approach. Beyond project eligibility, the government must also account for the city's fiscal capacity and potential financing risks.

"As this is a national first, maximum prudence is essential. The priority remains ensuring that planned programs continue to deliver real benefits to the community," she concluded.

The council will continue to gather proposals from regional agencies and listen to public aspirations during recess periods to inform the Draft APBD 2027 discussions.

Following this, the City Council and the Regional Government Budget Team (TAPD) will determine the most appropriate financing schemes, including the potential use of regional bonds for eligible projects.

"One thing is certain: all these activities must continue as they are essential multi-year projects," she concluded.