Pramono Wants To Issue Regional Bonds As A Result Of Jakarta's Budget Cut, Purbaya Allows

JAKARTA - DKI Jakarta Governor Pramono Anung revealed the DKI Jakarta Provincial Government's plan to seek regional income in other sectors to cover budget needs next year.

To the Minister of Finance, Purbaya Yudhi Sadive, who met him at the DKI Jakarta City Hall today, Pramono wants the DKI Provincial Government to be able to issue regional bonds for the first time.

"We ask the Ministry of Finance for permission to approve Jakarta to carry out creative financing, including doing what is called a Jakarta collaboration fund or regional bonds and so on, which does not yet exist," said Pramono, Tuesday, October 7.

Pramono expressed this regional bond plan because of the 2026 regional budget cuts (APBD) due to the central government reducing transfer funds to Jakarta to Rp15 trillion.

"Indeed, with the decline in the APBD in Jakarta from Rp95 trillion to Rp79 trillion, of course we have to do creative financing," said Pramono.

Responding to this, Minister of Finance Purbaya Yudhi Sadiveh admitted that his party supports the DKI Provincial Government's steps to carry out additional creative income such as regional bonds.

In this case, the DKI Provincial Government will issue debt securities to finance infrastructure development and various other regional programs. Then, investors will receive regular interest and return basic funds when the payment is due.

"Jakarta collaboration fund Governor's ambitions are quite high apparently. He wants to create Jakarta funds that can not be used in Jakarta, but are also used elsewhere. I think we will support this strategy," explained Purbaya.

The decline in APBD projection in 2016 was due to a nominal deduction of transfer funds from the central government to Jakarta amounting to IDR 15 trillion.

The initial plan, next year's APBD will be set at IDR 95 trillion, with a portion of transfer funds such as profit-sharing funds (DBH), general allocation funds (DAU), and special allocation funds (DAK) projected at IDR 26 trillion.

With this cut, the central transfer funds to Jakarta are only IDR 11 trillion and the DKI Regional Budget for the 2026 budget year will decrease to IDR 79.06 trillion.