Jakarta’s New Reserve Fund Key to Ironclad Fiscal Health, Says Pramono
Reported by Dessy Suciati | Translated by Nugroho Adibrata
Jakarta is looking to shore up its balance sheet with a massive Rp 5.6 trillion reserve fund.
Jakarta government must set up this Reserve Fund
Pitching the move to maintain a transparent and resilient fiscal posture, Governor Pramono Anung put it plainly.
"Why create a reserve fund? To provide an ironclad cushion that keeps our city budget (APBD) thriving," he expressed, at the Public Service Mall in Karet Kuningan, South Jakarta, Friday (10/2).
Pramono Calls on Experts and Academics to Preserve BiodiversityThe planned reserve comes as a direct follow-up to statutory laws and national government regulations.
Pramono has set his sights on turning Jakarta into a national benchmark for other provinces in running a clean, fiscally disciplined budget.
"I truly want Jakarta to be a role model—a shining example of a province where budget management is completely open, transparent, and in peak financial health. That’s exactly what we’re delivering," he explained.
Earlier during a plenary session at the Jakarta Legislative Council (DPRD) on Thursday (10/1), Pramono broke down the draft bylaw on the Rp 5.6 trillion reserve fund, noting that the capital is dedicated to bankrolling the city’s long-term infrastructure pipeline.
The development agenda spans public transit, flood mitigation and water management, public housing, as well as education and healthcare facilities.
He explained that these multi-faceted demands simply cannot be absorbed in a single annual budget cycle. Beyond squeezing the most out of the city budget, Jakarta needs planned, strategic access to creative financing mechanisms.
"To ensure absolute certainty and continuity for this creative financing roadmap, the Jakarta government must set up this Reserve Fund," he asserted.
Jakarta’s Rp 5.6 trillion reserve will be deployed in strategic stages to align with issued bond tenors and series, financed through city budget surpluses and earmarked local revenue.
"Pending deployment, we can park the funds in high-performing investment vehicles, factoring in risk appetite, principal safety, yield, and liquidity requirements," he noted.
At its core, the fund is Jakarta’s ultimate insurance policy: a dedicated firewall to make sure the city never falls behind on paying down its financing debt.
