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Jakarta wants private auditor for municipal bonds audit
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Basuki "Ahok" Tjahaja Purnama (center) poses with credit rating agency Standard & Poor's (S&P) director of sovereign Asia-Pacific Ex. Japan Kyran Curry (fourth left). (thejakartapost.com/Anton Hermansyah)
T
he Jakarta administration plans to hire private auditors, instead of BPK, to assess its financial statement before issuing any further municipal bonds, in light of the Sumber Waras hospital case against the Supreme Audit Agency (BPK).
The Jakarta administration aims to issue municipal bonds next year to finance both the light rail transit (LRT) and the sewage system projects, said Jakarta governor Basuki "Ahok" Tjahaja Purnama.
"We have talked with OJK [Financial Service Authority] regarding the audit requirement, but haven't received a response yet," he said on Monday following a meeting with credit rating agency Standard & Poor's.
While law stipulates that the government financial report is to be audited by BPK, according to Indonesian Stock Exchange (IDX) regulations, the issuer of a municipal bond must publish financial statements that have been audited by public auditors.
Last year, Ahok expressed his anger with BPK for giving his administration a reasonable with exceptions (WDP) grade for its 2014 budget, the second WDP grade granted to Jakarta.
Ahok wants the municipal bonds to be issued as soon as possible -- before the tax amnesty law is sealed by the House of Representatives (DPR).
"If the tax amnesty bill is passed into law, a lot of funds will come. In accordance with the government plan, we want to use the funds for infrastructure. We want to catch that momentum," he explained.
Along with municipal bonds, Ahok wants regional companies (BUMDs) to boost development projects in Jakarta and lure more investors. He mentioned Pembangunan Jaya Ancol Tbk and Bank DKI.
"I want them to have a strategic partner to develop their business. I want Ancol to be the best MICE [meetings, incentives, conferences and exhibitions] location in Indonesia. I don't care about ownership, I care more about how the BUMDs deliver on their duties," he said.
Jakarta regional planning and development institution (Bapped) head Tuty Kusumawati acknowledged that Bank DKI must conduct an initial public offering (IPO) to become a public company before launching a rights issue.
"We need to prepare Bank DKI as a public company first, then we can find a strategic partner," she told thejakartapost.com. (ags)
