Jakarta to Issue Regional Bonds of IDR 3.5 Trillion, Funds for Schools to Build RS Sumber Waras
JAKARTA - DKI Jakarta Governor Pramono Anung revealed that the DKI Provincial Government will start issuing regional bonds this year. The issuance of regional bonds is taken as an effort to find sources of financing outside the regional income and expenditure budget (APBD).
DKI Jakarta Governor Pramono Anung revealed that the process of issuing the regional debt letter is currently underway. The DKI Provincial Government is partnering with PT Sarana Multi Infrastruktur (Persero) or PT SMI together with the Ministry of Finance in preparing the issuance scheme.
This year, the DKI Provincial Government targets to issue regional bonds worth Rp3.5 trillion to finance the public service sector, ranging from education to hospital construction.
"This year Jakarta will issue regional bonds of Rp. 3.5 trillion, it is in the process. This is an exercise at the beginning of us. Because I believe for Jakarta, Rp. 3.5 trillion is not a difficult figure, if there is a problem covered," said Pramono, Wednesday, July 1.
Pramono explained that the funds from the issuance of the bonds would be allocated for the basic needs of the community, which have been the priority of the local government, namely for the education sector to the construction of an international standard hospital.
"What is this 3.5 trillion bond for? The first is for education, the second is for one of them, the initial capital to build Sumber Waras Hospital, later what will be the name of the hospital, in time we will announce," said Pramono.
"So, it's really for the most basic, most elemental purpose in Jakarta, not for what is the case, business and so on," he continued.
Meanwhile, commercial projects will still be financed through the APBD mechanism or the management of regional business entities (BUMD).
On that occasion, Pramono also touched on the condition of a number of DKI BUMD which were said to have begun to show positive performance. One of them is PAM Jaya which is now considered capable of improving the management of clean water services in Jakarta while also earning a profit.
"For example, PAM Jaya, people didn't expect PAM Jaya today to be able to meet 82 percent of Jakarta's clean water, fortunately it is above Rp1 trillion, right, people don't imagine much," said Pramono.
Similar optimism was also conveyed by Pramono to Bank DKI. According to him, the reshuffling of the board of directors and commissioners by prioritizing professionalism will have an impact on increasing the company's profit this year.
"I give high hopes to Bank DKI, fortunately I am sure it can be three times from last year. It can definitely be, if not, Bank DKI will be in trouble," he said.
On the one hand, Pramono admitted that the DKI Provincial Government had previously attempted to obtain central government permission to form the Jakarta Collaboration Fund as an alternative financing instrument.
Pramono explained that the concept of the institution is similar to a sovereign wealth fund that manages long-term investments. However, until now its formation is still awaiting central government approval because it requires a regulatory basis.
"This is actually the same as INA, namely the Indonesia Investment Authority or the so-called sovereign wealth fund. We want to have it. But in our country, it is not easy and not easy to have such rules," he added.