Admits Regional Bonds Are Still In Process, Pramono: Still In Discussion, Hopefully It Will Be Finished Soon

JAKARTA - DKI Jakarta Governor Pramono Anung admitted that the DKI Provincial Government has proposed a discourse on issuing regional bonds to the Ministry of Finance.

"At that time, the city hall had met with the director in charge of issuing regional bonds that provided approval," said Pramono at Cengkareng Hospital, West Jakarta, Thursday, October 16.

While waiting for approval to issue regional debt securities from the Directorate General of Fiscal Balance at the Ministry of Finance, the DKI Provincial Government is also still preparing what the regions need.

"We are under discussion and hopefully it will be resolved soon," said Pramono.

Pramono initially disclosed this regional bond plan because of the 2026 regional budget cuts (APBD) due to the central government reducing transfer funds, including profit-sharing funds (DBH) to Jakarta of up to Rp15 trillion.

Therefore, creative financing is indeed needed by the DKI Provincial Government to cover budget needs in work programs and development next year.

"With yesterday the DBH being reduced, of course, we have to find a way to get Jakarta's revenue, it can also be done," said Pramono.

"If it is permitted by the central government, Jakarta will immediately prepare what I said yesterday in front of the Minister of Finance regarding two things, the Jakarta and Jakarta Collaboration Fund bonds," he added.

Previously, when meeting Pramono at DKI Jakarta City Hall, Tuesday, October 7, 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 that strategy," said Purbaya.