Jakarta Govt Proposes Reserve Fund for Infrastructure Project Financing

The Jakarta Provincial Government has proposed a Rp5.6 trillion Regional Reserve Fund to secure funding for infrastructure development in Jakarta.

Benefits will be directly felt by residents

The proposal was one of the main points raised in Jakarta Governor Pramono Anung's response to the views of Jakarta City Council (DPRD) factions during a plenary meeting at the Jakarta DPRD Building on Wednesday (10/7).

Commission D Supports Reserve Fund for Long-Term Infrastructure

Pramono said the fund would be used to finance 10 multiyear projects in the 2027 fiscal year.

"All of these projects are regional strategic projects whose benefits will be directly felt by residents, including flood control infrastructure, public housing, hospitals, educational infrastructure, and the LRT Phase 1C (Manggarai-Dukuh Atas)," he explained.

As for the interest rate or coupon on municipal bonds, it will be determined during the registration process with the Financial Services Authority (OJK). The rate will depend on capital market conditions at the time of the public offering, as well as the Jakarta Provincial Government's credit rating.

The obligation to pay interest on the bonds will be budgeted separately in the annual regional budget until the municipal bonds mature.

Pramono assured that the Regional Reserve Fund would be managed transparently and accountably, while taking Jakarta's fiscal capacity into consideration.

"We can further discuss and agree on the management and oversight mechanisms for the Regional Reserve Fund during meetings of the Regional Regulation Formation Agency (Bapemperda)," he added.

During the plenary meeting, the Governor also delivered his response regarding a draft bylaw on changing the legal status of Perumda Air Minum Jaya into PT Air Minum Jaya (Perseroda).

The draft bylaw aims to expand access to clean water services and achieve 100 percent coverage while strengthening financial independence through creative financing schemes.

Pramono also assured residents that there would be no water privatization, stressing that drinking water provision is a basic public service that must remain under the control of the Jakarta Provincial Government.

The additional capital injection proposed in the draft regulation is expected to bring improvements, including a reduction in Non-Revenue Water (NRW). The executive branch is committed to setting tariffs according to residents' ability to pay, especially those from low-income households.

"The implementation of the Healthy Water Card program, with tariffs starting at Rp1 per liter, is a concrete action and a commitment to tariff fairness," he emphasized.

Meanwhile, the draft bylaw on PT Bank Jakarta (Perseroda) seeks to strengthen corporate governance, establish legal certainty for the name change, and set its strategic direction as a regional development instrument.

The Jakarta Provincial Government fully supports the implementation of Good Corporate Governance (GCG) standards in banking, as well as corporate governance reporting mechanisms in accordance with applicable laws and regulations.

Through the draft bylaw, Bank Jakarta will also carry out a comprehensive technology transformation program, including an information technology systems audit by an external auditor.

Bank Jakarta is also committed to becoming a leading financing partner for MSMEs in Jakarta. It will continue expanding its Micro Centers network, integrating the MSME ecosystem, and digitalizing the credit application process across the capital.

Lastly, the draft bylaw proposes changing the legal status of PT Transportasi Jakarta to PT Transportasi Jakarta (Perseroda).

Under the draft bylaw, Transjakarta's business lines will be expanded, particularly through the development of integrated and inclusive water transportation services to the Thousand Islands. The initiative is expected to promote more equitable access to public services while supporting the local economy.

"The executive has prepared several management options and is conducting a comprehensive review to determine the best one while ensuring that all stages comply with legal requirements," he said.

Pramono also noted that Transjabodetabek had served 329.2 million customers through the third quarter, with the figure projected to reach 438.5 million by the end of 2026.

The executive branch is also working to improve the efficiency of subsidy use and expand access to more beneficiaries, while optimizing Transjabodetabek services across the metropolitan area.

"The executive branch hopes that all of these draft bylaws can be approved and enacted as regional regulations according to the schedule set by the Deliberative Council," Pramono added.