Pramono Wants to Add DKI Bonds of Rp2.7 Trillion, LRT Manggarai-Dukuh Atas as an Excuse 

DKI Jakarta Governor Pramono Anung/PHOTO: Diah Ayu-VOI

JAKARTA - DKI Jakarta Governor Pramono Anung has increased the plan to issue regional bonds which are targeted to start running in 2027. The value of the bonds, which was originally pegged at Rp3.5 trillion, has now increased to around Rp6.2 trillion after the inclusion of the financing needs of the Manggarai-Dukuh Atas LRT route project.

Pramono said the addition of the bond value was a consequence of the additional budget of around Rp2.7 trillion for the LRT project.

"So I did get a report that there was an increase in the bond plan. The ability of the DKI Jakarta Government is at least its bonds are actually around Rp. 20 trillion," said Pramono at the DKI Jakarta City Hall, Wednesday, August 5.

Although DKI's fiscal capacity is said to be much larger, Pramono admitted that he chose a more cautious approach in determining the value of issuing the debt.

"But I ask for conservatism. Come out with a figure of Rp. 3.5 trillion, then because there is an addition for the LRT from Manggarai to Dukuh Atas, approximately Rp. 2.7 trillion, so there is an addition," said Pramono.

According to him, the use of bonds for transportation projects will actually make the financing instrument more measurable because it is directed to projects that have long-term benefits.

"Because if it is used for LRT, this bond will definitely be more prudent. Why? Because it is really used for what is effective. So later this bond will be used in principle for two. One for hospitals, the second for transportation," he explained.

The plan to issue regional bonds is one of the financing schemes that are being prepared by the DKI Provincial Government in the midst of the need for infrastructure development and public services. The government targets that the bonds can be issued in conjunction with the 500-year momentum of Jakarta in 2027.

"So my hope is that if it is in June next year when we are 500 years old and can make the first bond in this republic, it is a good signal for Jakarta," said Pramono.

Pramono also revealed that the plan had received support from the World Bank. According to him, financing through regional bonds can strengthen Jakarta's financial structure if it is run with disciplined management.