Provincial Government Hopes Central Government To Immediately Approve DKI Issuing Regional Bonds

- Jakarta City Hall building (@pemprov dki)

JAKARTA - Deputy Special Staff Coordinator for the Governor of DKI Jakarta, Yustinus Prastowo hopes that the central government can immediately approve the DKI Provincial Government to issue regional bonds.

Because, before issuing regional debt securities, local governments must obtain approval from the Minister of Finance and considerations from the Minister of Home Affairs.

"It is hoped that with the support of the Ministry of Finance and the ministry of the country, (the issuance of bonds) can be faster. The center also has an interest, the area has the capacity and ability to issue bonds as an alternative financing," Prastowo told reporters, Saturday, October 11.

The discourse on regional bonds emerged after the central government decided to cut the transfer funds in the form of profit-sharing funds (DBH) to Jakarta amounting to Rp15 trillion.

Prastowo explained that the reason Pramono chose the bonds was a solution to cutting DBH was because he also wanted the ranks of the DKI Provincial Government to be more responsible in managing regional finances.

"By issuing bonds, the regions can be more responsible. Because they do not just hope for regional transfers. Because they have to pay installments, principals, and interest, they must work productively, thus producing new financing sources," said Prastowo.

"But the bonds need supervision from the Ministry of Finance and the Ministry of Home Affairs. Jakarta shouldn't be difficult," he continued.

In addition, Prastowo also discussed the formation of the Jakarta Collaboration Fund. The establishment of this endowment fund management institution, according to Prastowo, is still being consulted with the central government.

"Fund is in the long term, and this requires a legal umbrella, needs a new institution, is in the process. Hopefully the legal umbrella can be resolved soon," he said.