Pramono Targets IDR 3.5 Trillion Regional Bonds to be Launched in June 2027, with Funds for LRT to Flood Control 

DKI Jakarta Governor Pramono Anung/DOK Humas DKI Provincial Government

JAKARTA - The DKI Jakarta Provincial Government (Pemprov) targets to issue a Regional Bond worth Rp3.5 trillion in June 2027. The financing instrument is prepared to fund a number of strategic projects, ranging from the construction of LRT Phase 1C Manggarai-Dukuh Atas, hospitals, schools, to flood control infrastructure.

The target was conveyed by the Governor of DKI Jakarta Pramono Anung when opening the Capacity Building for Issuing Regional Bonds.

Pramono said that the plan to issue Regional Bonds had been included in the proposed General Policy of the Regional Budget and the Priority of the Provisional Budget Ceiling (KUA-PPAS) of the 2027 Regional Budget as one of the alternative financing for development in the midst of increasing regional spending needs.

"The plan to issue this Regional Bond has been proposed in the APBD 2027 KUA-PPAS. The bond will be one of the alternative sources of regional development financing to support various public service projects," said Pramono, Tuesday, July 21.

According to Pramono, the funds from the issuance of bonds will be focused on financing projects that provide direct benefits to the community. In addition to the construction of the Manggarai-Dukuh Atas LRT Phase 1C, the budget will also be allocated for the construction of regional general hospitals (RSUD), new school units, ponds and polders as flood control, and apartment buildings.

The DKI Provincial Government designed the bonds with a maximum tenor of seven years. Meanwhile, the amount of coupons will be determined in accordance with the conditions of the financial market at the time of issuance so that the cost of funding remains efficient and competitive.

To realize this plan, the DKI Provincial Government has begun to prepare various stages, including coordinating with the central government. A request for support was submitted on June 12, 2026 and followed up with a letter of support from the Coordinating Ministry for Economic Affairs on July 10, 2026.

The preparation process also received assistance from a number of ministries, the Financial Services Authority (OJK), to international institutions.

Pramono assessed that the readiness of all stakeholders is an important factor so that the issuance of Regional Bonds runs in accordance with the provisions and gains the trust of investors.

"Through this capacity building, we want to ensure that all the preparation process runs maturely so that the issuance of Regional Bonds becomes a credible, accountable financing instrument, and is able to accelerate development and improve the quality of public services for the people of Jakarta," said Pramono.

The plan to issue Regional Bonds also received support from the DKI Jakarta DPRD. Chairman of the DKI Jakarta DPRD Suhud Alynudin said the scheme was a breakthrough to expand the source of funding for development outside of the Regional Original Income (PAD).

"The DKI Jakarta DPRD welcomes the government's efforts to find alternative funding outside of Local Revenue. This is an important breakthrough for Jakarta. We are ready to encourage the preparation of the necessary regulations so that the Regional Bonds and other creative financing schemes can run sustainably and become an example for other regions in Indonesia," said Suhud.