Jakarta Governor Pramono Anung will issue Indonesia\u2019s first regional\nbond, named the Jakarta Bond. The bond will be used to finance the\npublic interest in Jakarta.<\/p>\n
Pramono made the announcement at the Jakarta Budget Talks: Navigating\nJakarta\u2019s Regional Budget \u2014 Strengthening Performance, Safeguarding the\nPublic Interest \u2014 held at Jakarta City Hall on Wednesday (22\/7\/2026).\nPramono said the Jakarta Bond is intended to raise Jakarta\u2019s\ninternational profile.<\/p>\n
\u201cWe are starting with the Jakarta Bond. Hopefully subscriptions will\nbe high, so that Jakarta becomes better known globally,\u201d Pramono\nsaid.<\/p>\n
Pramono expressed confidence that the Jakarta Bond would make\nJakarta\u2019s regional budget more robust, with the benefits felt by all\nresidents.<\/p>\n
\u201cJakarta is certainly capable, and with this bond, its budget will\nbecome more robust, healthier, and hopefully bring greater benefit to\nthe public,\u201d he said.<\/p>\n
Pramono then explained the details of the Jakarta Bond, which has a\nset value and tenor. So, what should be known about the Jakarta\nBond?<\/p>\n
To be issued in June 2027<\/p>\n
Pramono said the Jakarta Bond will be issued in June 2027. The bond\nhas a value of Rp 3.5 trillion with a seven-year tenor.<\/p>\n
\u201cHopefully, in June next year we will issue a regional bond worth Rp\n3.5 trillion, with a seven-year tenor,\u201d Pramono said.<\/p>\n
Indonesia\u2019s first regional bond<\/p>\n
Pramono explained the reasoning behind the Rp 3.5 trillion figure,\nsaying it is because this will be Indonesia\u2019s first regional bond.<\/p>\n
\u201cWhy Rp 3.5 trillion? Jakarta\u2019s actual capacity is far greater than\nthat. But we know this is the first regional bond to be launched in this\nrepublic. And if this succeeds as a creative financing instrument, I am\nconfident it can be replicated in other regions,\u201d Pramono said.<\/p>\n
The concept of creative financing<\/p>\n
Pramono likened the bond issuance to a wealthy person who borrows\nmoney despite having ample financial means, in order to keep their\nfinances healthier.<\/p>\n
\u201cThere are many rich people who do not actually need to borrow but\nstill do, because it makes their balance sheet healthier,\u201d he said.<\/p>\n
Pramono stressed that Jakarta\u2019s finances remain strong despite being\naffected by cuts to the revenue-sharing fund (DBH) from the central\ngovernment. The bond is therefore not being issued to cover a budget\nshortfall, but as an alternative source of development financing.<\/p>\n
\u201cIt is the same with Jakarta. Even though there have been DBH cuts,\nwe are undertaking creative financing so that Jakarta\u2019s finances become\nfar healthier, transparent and open,\u201d he said.<\/p>\n
Jakarta Bond to finance the public interest<\/p>\n
He said the Jakarta Bond will be used for the public interest,\nincluding hospital development and the expansion of the MRT.<\/p>\n
\u201cWhether for the MRT, or for hospitals, because Jakarta will now\nbuild two international hospitals, one of them at Sumber Waras. And\nSumber Waras is already complete,\u201d Pramono said.<\/p>\n
He wants Jakarta to become something new, and it all starts with\nJakarta.<\/p>\n
\u201cI want Jakarta to become something new, and we start with Jakarta.\nAnd we begin,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/governor-pramono-prepares-creative-financing-with-jakartas-first-rp-3-5-trillion-municipal-bond-1784786004", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }