Pramono Says Jakarta Will Follow Central Govt Decision on Municipal Bonds

Jakarta Governor Pramono Anung said the Jakarta Provincial Government will follow the central government's decision regarding plans to issue municipal bonds.

We will follow whatever decision the central government makes

According to him, the plan would proceed only after receiving full approval from the central government.

City Council Supports Bond Financing to Speed Up Public Housing Development

"We will continue to put forward our proposal, but whatever decision is made by the central government, the Jakarta Government will sami'na wa ato'na. We will follow whatever decision the central government makes," Pramono said at Jakarta City Hall on Wednesday (9/30).

He said the Jakarta Provincial Government would soon coordinate with the Ministry of Home Affairs, the Ministry of National Development Planning (Bappenas), and the Ministry of Finance on the matter. If approval is granted by the relevant ministries, the plan to issue the bonds as an alternative financing scheme will proceed.

"When it comes to municipal bonds, the Jakarta Government will proceed only after receiving full approval from the central government. If we receive approval, we will proceed. If not, then so be it," Pramono added.

Pramono said he understood the central government's cautious approach to approving municipal bond issuances, given the varying fiscal capacity of each region.

However, he said Jakarta has sufficient budget capacity and maintains sound and orderly financial management. He added that municipal bonds could serve as an additional financing instrument for the capital.

He noted that the situation may be different in other regions, where municipal bonds could instead place an additional burden on local and central governments.

"For some other provinces, municipal bonds should not be used simply to obtain additional budget or pursue creative financing when their own budgets are not strong enough to cover the obligations," he said.