BOGOR - The Ministry of Finance (Kemenkeu) continues to encourage local governments to issue regional bonds or municipal bonds as an alternative source of financing.
Director General of the Directorate General of Economic and Fiscal Strategy of the Ministry of Finance Febrio Nathan Kacaribu revealed that this discourse is in line with the increasing ability of regions to explore income beyond the central budget.
"We've always pushed for regional bonds. That's best practice. Especially for those with strong fiscal capacity," he said at the 2026 State Budget Complete Qualification Ceremony, Thursday, October 9.
According to Febrio, before issuing bonds, local governments must explain projects that will be financed, including the estimated return and the impact on Regional Original Revenue (PAD).
"So that the potential investor, if he later buys a municipal bond," he said.
He added that the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance has also provided training to a number of local governments regarding the process of issuing these bonds.
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"If there are more and more local governments who can do it the better. That is, they will immediately face the market," he said.
Febrio said that several areas such as DKI Jakarta and West Java Province were referred to as examples that were continuously encouraged to take this step.
"So it's good that if an initiative has started, it means that he has seen the opportunity. Of course we will support it," he explained.
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