City firms to issue bonds<\/p>\n
The Jakarta Post, akarta<\/p>\n
The Jakarta administration is considering bond issues by city-
\nowned firms to raise additional revenue to help finance
\ndevelopment projects in the capital.<\/p>\n
Nugraha K. Yasin, head of personnel and administrative affairs
\nwith the Jakarta Planning Board (Bapeda), said on Monday that the
\nadministration depended too much on revenue from local taxes.<\/p>\n
\"We cannot continue in this way as revenue from local taxes
\nwill reach its maximum level some time in the near future,
\nforcing the administration to look for other sources of revenue.
\nThat's why we are looking into the possibility of letting city-
\nowned companies raise fresh cash through bond issues,\" he told
\nreporters.<\/p>\n
He added that since revenue from taxes was limited,
\nthe administration often found it difficult to implement its
\nprograms.<\/p>\n
\"But, the plan to issue bonds will require city-owned
\ncompanies to improve their performance in the first place to make
\nthe bonds attractive to investors,\" he said.<\/p>\n
He acknowledged that most city-owned firms performed poorly,
\nonly managing to contribute Rp 103.4 billion (US$10.5 million)
\nlast year, a meager amount compared to the 2004 figure of Rp
\n11.49 trillion.<\/p>\n
The 2005 city budget is around Rp 14.01 trillion.<\/p>\n
Aside from tax collection, the administration also receives
\nrevenue from local charges, contributions from city-owned
\ncompanies and \"miscellaneous\" sources.<\/p>\n
Nyoman Suhartono, head of the budget unit in the Jakarta
\nFinance Bureau, said that vehicle registration and ownership
\ntaxes were the biggest income earners for the city.<\/p>\n
\"The motor vehicle registration tax contributed Rp 1.9
\ntrillion last year, while vehicle ownership taxes brought in Rp
\n2.4 trillion,\" he said.<\/p>\n
In addition to encouraging city-owned firms to issue bonds,
\nNugraha said that the administration was also considering
\npromoting development projects through public-private
\npartnerships.<\/p>\n
He pointed to the agreement with the PT Jakarta Monorail
\nconsortium to develop an ambitious monorail project worth $497
\nmillion as an example.<\/p>\n
\"But, we need to be careful in picking our partners so as to
\nensure that any deals won't lead to losses,\" he asserted.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-firms-to-issue-bonds-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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