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View all search resultsJakarta presses ahead with municipal bonds despite pushback
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Tap and go: Passengers tap electronic fare cards after disembarking from an LRT train on June 22 at Velodrome Station in East Jakarta. (Antara/M Risyal Hidayat)
J
akarta Governor Pramono Anung presses ahead with his plan to issue municipal bonds to fund transportation and healthcare projects amid a slashed budget and despite pushback from a reluctant finance minister.
Pramono’s special staffer for communications Cyril “Chico” Hakim told The Jakarta Post on Monday that Jakarta would gradually issue its municipal bonds with a size of between Rp 5.2 trillion (US$294 million) and 5.6 trillion by 2027, though the fixed number is still under review.
“The City Council, meanwhile, is currently deliberating the proposal," Chico said.
The issuance would make Jakarta the first regional administration to issue municipal bonds, as the mechanism to do so was introduced by the central government in 2019.
A 2024 Finance Ministry regulation stipulates that a regional administration can issue bonds to finance their infrastructure projects, though a “principal approval” from its regional legislative council (DPRD) and a ministerial recommendation from the Home Ministry are required.
According to Chico, the Home Ministry has reviewed the proposal but a formal recommendation has yet to be granted.
Jakarta plans to use the bonds to finance the expansion of its light rapid transit (LRT) network and the construction of a new hospital, Governor Pramono has said.
