DKI DPRD Supports Pramono Bond, Emphasizes It Must Be Transparent and Accountable

JAKARTA - The budget cuts from the central government do not necessarily make development in Jakarta have to slow down. In the midst of declining Revenue Sharing Funds (DBH) and Transfer to the Region (TKD) of around Rp. 15 trillion, the Governor of DKI Jakarta, Pramono Anung, plans to issue regional bonds worth Rp. 5.2 trillion.

Responding to this, Member of Commission C of the DKI Jakarta DPRD, Hardiyanto Kenneth, appreciated the DKI Jakarta Provincial Government's plan to issue regional bonds worth Rp5.2 trillion as one alternative for financing development. According to him, this step is a form of financing innovation that should be supported as long as it is carried out transparently, accountable, and oriented towards the public interest.

Bang Kent - nickname of Hardiyanto Kenneth - assessed that in the midst of increasing development needs and fiscal challenges, local governments do need to present various creative financing schemes so that development can continue without relying entirely on the Regional Revenue and Expenditure Budget (APBD).

"In principle, I very much appreciate the steps taken by the Governor of DKI Jakarta Pramono Anung in trying to present various creative financing schemes, including the plan to issue regional bonds worth Rp5.2 trillion. In the midst of fiscal challenges and increasing Jakarta's development needs, the local government is indeed required to have innovation in finding sustainable funding sources without solely relying on the APBD. This shows the courage to seek more modern and comprehensive financing alternatives, as has been implemented in various major cities in the world," said Kent in his statement, Thursday, August 6.

The PDI-P politician emphasized that the issuance of regional bonds should not only be seen as an effort to obtain additional funds, but must be able to generate long-term benefits for the community. Therefore, the use of bond funds must be focused on productive projects that have a direct impact on improving public services and regional economic growth.

"I think that the issuance of regional bonds is not just about obtaining additional funds, but also about how to ensure that every rupiah collected really provides long-term benefits for the community. So, the funds from the bonds must be directed strictly to finance productive projects that have a real economic and social impact, such as the development of transportation infrastructure, the health sector to infrastructure that can improve the quality of life of Jakarta residents. Don't let these bonds be used for routine or consumer spending," he said.

As a member of the C Commission of the DKI Jakarta DPRD which deals with regional finances, Kent ensures that his party will carry out the function of oversight at every stage of the issuance of the bonds. He emphasized the importance of good governance starting from the planning process, project determination, to the use of funds from the issuance of bonds.

"As a supervisory function in the DPRD, I will certainly monitor every stage of this policy so that it is implemented in accordance with the principles of good governance. Starting from the planning process, project determination, issuance mechanism, to the use of the budget must be carried out transparently, accountable, and accountable to the public. Investor confidence will only be built if the government is able to show fiscal discipline, credibility of financial management, and certainty that the financed projects have measurable benefits," said the Alumni of PPRA Lemhannas RI Class LXII.

Kent also reminded the DKI Jakarta government to conduct a comprehensive study on the regional fiscal capacity in meeting the principal and interest obligations on future bonds. According to him, every financing policy must be prepared based on realistic projections so as not to burden the regional finances in the future.

"I also see the importance of having a thorough study of the fiscal capacity of the DKI Jakarta Provincial Government in fulfilling every obligation to pay the principal and interest of the bonds in the future. Although Jakarta's fiscal condition has been relatively strong and the DKI Jakarta government guarantees that the issuance of this bond will not burden the next government, every projection must still be based on conservative calculations by considering various economic risks, changes in regional revenues, to the dynamics of national policies. This is important so that today's policy does not become a burden for the DKI Jakarta government in the future," he said.

In addition, Kent encouraged the DKI Provincial Government to open the widest possible communication space to the DPRD institutions, market players, academics, and the public regarding the purpose, benefits, and mechanisms for issuing regional bonds. According to him, openness to information is an important factor in building public trust as well as increasing investor interest.

"In addition, I hope the DKI Jakarta government can open a wide range of communication space to the DPRD Institutions, market players, academics, and the public regarding the purpose, benefits, risks, and mechanisms of regional bonds. Transparency from the beginning will build public trust while avoiding misunderstandings that these bonds are identical to the increase in regional debt burden. In fact, if managed professionally, bonds are one of the healthy and productive financing instruments for development," he said.

Kent emphasized that the DKI Jakarta DPRD is basically ready to support any policy that aims to accelerate development and improve the quality of public services, as long as it is carried out based on the principles of prudence, accountability, and has a strong study basis.

"We in the DKI Jakarta DPRD are ready to provide support for any policy that truly benefits the public. The ultimate goal is not only to provide additional sources of financing, but to ensure that Jakarta is getting better in the future," he concluded.

Meanwhile, public policy observer from Trisakti University, Trubus Rahardiansah, assessed that the DKI Jakarta Provincial Government's (Pemprov) plan to issue regional bonds is a step that can be a solution to maintain the sustainability of development in the capital, especially in the midst of declining budget support from the central government.

According to Trubus, this policy is Pramono's effort to find alternative sources of funding after DBH and TKD for the DKI Jakarta Provincial Government experienced cuts.

"If it is useful for the development of Jakarta, the issuance of this regional bond is a good step. At least Mr. Pramono is looking for solutions in the midst of declining DBH and TKD from the central government. Therefore, the DKI Provincial Government needs to find other sources of funding," said Trubus when contacted.

He explained that regional bonds are long-term financing instruments that can be used to support various development projects that provide benefits for the community.

"This is part of the DKI Provincial Government's efforts to find long-term sources of financing for development. In the end, the funds collected are public money that must be reused for the development of Jakarta and the welfare of the community," he said.

Trubus also assessed Pramono's way of thinking in finding new sources of financing should be appreciated. According to him, if the regional bond scheme is implemented properly, Jakarta has the potential to become an example for other local governments in developing sources of funding outside the conventional budget.

"What is clear, Mr. Pramono's way of thinking gives room for other regions to find alternative financing like this. If it succeeds, Jakarta can become a role model for other regions," he said.

On the other hand, Trubus assessed that the DKI Provincial Government actually had the opportunity to increase regional revenue through various fiscal instruments, such as the implementation of a levy on electric vehicles and a paid road policy (electronic road pricing/ERP). However, according to him, Pramono prefers not to burden the public with new tax collection.

"For example, electric vehicles can be taxed, the result of which can be used for road construction. The same is true for paid roads for vehicles, both motorcycles and cars, which have the potential to become a major source of income. But Mr. Pramono did not take that step to attract additional taxes," he said.