JAKARTA - DKI Jakarta Governor Pramono Anung ensures that the plan to issue regional bonds worth Rp3.5 trillion will not be a burden on debt for the governor who leads Jakarta in the next period.
The statement was made in response to the concerns of Home Minister Tito Karnavian who reminded that the financing scheme should not burden the next government.
Pramono emphasized that the value of the bonds to be issued was still within the fiscal capacity of DKI Jakarta. Therefore, he believes that the provincial government is able to meet all obligations to pay bonds until they are due.
"Actually, the Rp. 3.5 trillion bond for Jakarta is not an obstacle. And of course Jakarta will be able to solve it well, whoever will be the Governor in Jakarta. So why is the tenor 7 years," said Pramono at the DKI Jakarta City Hall, Tuesday, July 28.
According to Pramono, the issuance of bonds is part of the creative financing strategy to support development financing. He also said that the plan had received support from the Coordinating Ministry for Economic Affairs in accordance with the applicable mechanism.
However, Pramono emphasized that he would still consider input from the Ministry of Home Affairs before the plan was carried out. He admitted that he would discuss directly with the Minister of Home Affairs Tito Karnavian regarding the scheme for issuing regional bonds.
"Whatever it is, as the Governor I will also listen to what the Ministry of Home Affairs has to say. So that way, in time, I will definitely discuss with the Minister of Home Affairs," said Pramono.
Previously, Tito Karnavian reminded the issuance of regional bonds in essence was a debt so it had to be calculated carefully. He reminded the policy should not become a debt burden for the next government.
"Yes, we will study it (regional bonds) first, because bonds are the same as debt. The APBD is not able to pay that debt. Don't let it become a burden for the next regional head. If you don't have the ability to pay, it's a hassle," said Tito.
According to Tito, the issuance of regional bonds cannot be seen only as a financing instrument for development. The government must also ensure that the principal and interest obligations do not burden the regional fiscal space, especially for the governor who will lead in the next period.
"The most important thing is to be able to pay during his term of office. And don't let the burden of the next regional head," he said.
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