Jakarta plans development bond

The Jakarta Post ,  Jakarta   |  Wed, 09/05/2007 2:18 PM  |  Jakarta

JAKARTA: The Jakarta administration says it will issue bonds to finance infrastructure development in the capital.

Deputy Governor Fauzi Bowo said Tuesday the Finance Ministry had approved the plan.

""Jakarta qualifies to use local bonds to finance the development of infrastructure as the city is in better macroeconomic condition than other provinces,"" said Fauzi, who will be inaugurated next month as the first-ever directly elected governor of Jakarta.

He said Jakarta had a bigger budget and less debt than other administrations in the country.

""The bonds could be used to finance the construction of innercity expressways and a port,"" he said as quoted by Antara.

The administration earlier said it would construct six toll roads, linking Bekasi-Kalimalang-Kampung Melayu; Ulujami-Tanah Abang; Kampung Melayu-Tomang; Pasar Minggu-Casablanca; Kemayoran-Kampung Melayu; and Sunter-Pulo Gebang.

It said about Rp 23 trillion would be needed to build the 85 kilometers of toll road.

The central government has passed six regulations regarding the issuance of bonds by local administrations. --JP

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