Pramono Relying on Creative Financing to Develop Jakarta
Reported by Dessy Suciati | Translated by
Jakarta Governor, Pramono Anung is optimistic that Jakarta's development will continue, even though the Revenue Sharing Fund (DBH) received by Jakarta has been significantly cut by the Central Government.
we must remain with a smile and optimism
The nearly Rp15 trillion DBH cut has altered the Jakarta Regional Budget (APBD), shifting the budget from the original Rp 95 trillion to around Rp 79 trillion.
"The Jakarta government will try, which usually has a fairly large budget about Rp 90 trillion, this year actually Rp 95 trillion will become Rp 79 trillion and we must remain with a smile and optimism to be able to build Jakarta," he said, Monday (10/6).
Pramono Ensures Priority Programs Remain ContinuePramono admitted that he would seek creative financing and strategic partnerships to finance major projects, including using Building Floor Coefficient (KLB) funds, Certificate of Functional Worthiness (SLF), and Letter of Approval in Principle for Land/Location Acquisition (SP3L).
Pramono added that the construction of the Dukuh Atas TOD would continue even though the mechanism would use non-APBD financing, namely through partnerships and others.
Pramono also stated the need to review other potential revenue sources, including the provision of large subsidies in the transportation sector.
"I'm just giving an example. Our per person transportation subsidy almost Rp 15,000. Therefore, we will review various aspects," he added.
Pramono emphasized that the Jakarta Provincial Government has prepared a budget reallocation and efficiency strategy, including encouraging creative financing schemes to address the DBH cuts.
"There must be reallocation, efficiency, and also stressing on things that cannot be reduced," he emphasized.
However, Pramono assured that priority programs directly impacting the residents welfare would remain unaffected, including the Jakarta Smart Card (KJP) and Jakarta Excellent Student Card (KJMU) educational assistance programs.
The Jakarta Provincial Government also plans to implement efficiency and refocus on non-priority programs. He cited efficiency in official travel and other programs.
"Things related to eating, drinking and so on," he stated.
