Pramono-Finance Minister Purbaya Explore Creative Financing Schemes Following DBH Cut
Reported by Dessy Suciati | Translated by
Jakarta Governor Pramono Anung will prioritize creative financing schemes to address the reduction in the City Budget (APBD) caused by cuts to the Revenue Sharing Fund (DBH).
"We must pursue creative financing,"
One of the creative financing strategies the city is preparing is the establishment of the Jakarta Collaboration Fund, which he announced after a meeting with Finance Minister Purbaya Yudhi Sadewa at Jakarta City Hall on Tuesday (10/7).
"We must pursue creative financing, so we requested permission from the Ministry of Finance to approve Jakarta's use of creative financing methods, including what is called the Jakarta Collaboration Fund or regional bonds," Pramono explained.
Pramono Relying on Creative Financing to Develop JakartaAdditionally, the Jakarta Government plans to utilize the Rp200 trillion fund allocated by the Ministry of Finance to the State-Owned Banks Association (Himbara) to be accessible for Jakarta Regional-Owned Enterprises (BUMD).
"We also want to make use of Rp200 trillion fund designated by the Ministry of Finance, through Minister, to Himbara Banks. We are allowed to use this for BUMDs in Jakarta," Pramono mentioned.
According to him, although Jakarta complies with the central government's fiscal policies, including adjustments to Revenue Sharing Fund, the decrease in APBD requires Jakarta to innovate.
Due to DBH cuts, Jakarta's APBD has decreased from Rp95 trillion to Rp79 trillion. As a result, the Jakarta Government is currently refocusing its budget and programs.
"Jakarta is trully committed to aligning its fiscal policies with those set by the central government, especially regarding the regulation of the Revenue Sharing Fund (DBH)," he said.
During the meeting, they also discussed the construction of Bank Jakarta building in SCBD area. The Jakarta Provincial Government asked Ministry of Finance to accelerate the building's development.
"We ask for approval from the Ministry of Finance, Minister, so that we can proceed with building the Bank Jakarta headquarters in SCBD in collaboration with the Ministry of Finance," Pramono shared.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa welcomed the Jakarta Provincial Government's plan to establish the Jakarta Collaboration Fund.
"They want to create a Jakarta fund that can be used not only in Jakarta, but also elsewhere. I think we will support that strategy," he said.
Regarding the request to utilize Rp200 trillion fund by the Jakarta Provincial Government, Minister Purbaya also responded positively, explaining that it is essentially a business-to-business arrangement.
"As for the Rp200 trillion from Himbara Banks, can it be used? Basically, it is business to business. If it is profitable, they can directly approach the Himbara Banks," he explained.
The Minister even opened the possibility of injecting tens of trillions of rupiah directly into Bank Jakarta to boost credit distribution for MSMEs and local industries, thereby driving economic growth.
"Jakarta has Bank Jakarta. I put it in Himbara Rp200 trillion. How about I add tens of trillions more to Bank Jakarta? I will calculate the exact amount later. But even Rp10 trillion or Rp20 trillion could work to absorb the funds," Purbaya added.
Regarding the construction of Bank Jakarta building in SCBD, Minister Purbaya welcomed the plan, saying it would help stimulate economic growth in Jakarta.
"About the Bank Jakarta building development in lot one of SCBD, I am very pleased with that. Why? Because it will boost economic growth in Jakarta and nationally as a whole," he mentioned.
