Jakarta, CNBC Indonesia \u2014 Finance Minister Purbaya Yudhi Sadewa has\nspoken out about the Jakarta Provincial Government\u2019s plan to issue\nmunicipal bonds worth Rp3.5 trillion in June 2027.<\/p>\n
Purbaya said his office had not been informed of the plan by the\nJakarta Provincial Government, and admitted he was puzzled given the\nprovince\u2019s still-substantial regional budget.<\/p>\n
\u201cI don\u2019t yet know about Jakarta wanting to issue bonds. Why would\nthey issue bonds when they have plenty of money in the regional budget?\u201d\nPurbaya told reporters after a debottlenecking session on Thursday (23\nJuly 2026).<\/p>\n
When asked whether the bonds would serve as a new financing\ninstrument, Purbaya again expressed puzzlement, noting that much of\nJakarta\u2019s regional budget remains unused.<\/p>\n
\u201cThey have plenty of money. There are still trillions unused,\u201d he\nadded.<\/p>\n
He said his office had also received no communication from the\nJakarta Provincial Government regarding the bond issuance. However,\nPurbaya said he would meet with Jakarta Governor Pramono Anung to\ndiscuss the matter.<\/p>\n
Purbaya also addressed whether the bond issuance would be risky.<\/p>\n
\u201cI don\u2019t know, but I\u2019ll check with them later. The point is, if it\u2019s\ncredible and Jakarta has plenty of money, it\u2019s actually not dangerous.\nThe only question is, the money isn\u2019t being used much, so what\u2019s it\nfor?\u201d he explained.<\/p>\n
Earlier, Pramono said the issuance of the regional debt papers is\nscheduled to coincide with the 500th anniversary of the city of\nJakarta.<\/p>\n
According to him, the financing instrument will serve as an\nalternative funding source to accelerate infrastructure development and\nimprove the quality of public services.<\/p>\n
Pramono stressed that the bond issuance plan has been proposed in the\nGeneral Budget Policy and Temporary Budget Ceiling Priorities (KUA-PPAS)\nfor the 2027 regional budget, as one strategy to strengthen regional\ndevelopment financing.<\/p>\n
\u201cThe plan to issue regional bonds has been proposed in the KUA-PPAS\nfor the 2027 fiscal year. These bonds will become one of the alternative\nfinancing sources for regional development to support various public\nservice projects,\u201d Pramono said in a press statement quoted on Wednesday\n(22 July 2026).<\/p>\n
The regional bonds are planned to have a maximum tenor of seven\nyears. The coupon rate will be set with consideration of conditions and\ndynamics in the financial markets at the time of issuance, so that the\nfinancing remains efficient and competitive.<\/p>\n
Proceeds from the bond issuance will be focused on the construction\nof the Manggarai-Dukuh Atas LRT Phase 1C, regional general hospitals\n(RSUD), new school units, retention basins and polders for flood\ncontrol, as well as high-rise public housing.<\/p>\n
In the process, the Jakarta Provincial Government submitted a request\nfor support to the central government on 12 June 2026 regarding the\nmunicipal bond issuance.<\/p>\n
The request was followed up with a letter of support from the\nCoordinating Ministry for Economic Affairs on 10 July 2026. The process\nhas also received guidance from various ministries and agencies.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakarta-plans-to-issue-rp3-5-trillion-in-bonds-finance-minister-purbaya-questions-necessity-1784857866", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }