The Financial Services Authority (OJK) has expressed its support for\nthe formation of the Regional Bond Bill. OJK describes regional bonds as\na potential instrument that can be utilised by regions to become more\nself-sufficient.<\/p>\n
\u201cOne of the capital market instruments that we believe has great\npotential is regional bonds and sukuk. There is space for regions to\nraise funds, for example, through the issuance of instruments such as\nshares or other debt-based instruments from regional corporations or\nRegional Owned Enterprises (BUMD). We hope that through the issuance of\nregional bonds or sukuk, local governments will obtain alternative\nfinancing that allows them to be more independent,\u201d said OJK Board of\nCommissioners member Hasan Fawzi during a public discussion on the\nRegional Bond Bill with the Golkar Party Faction of the MPR in Pondok\nAren, South Tangerang, on Monday (8\/6\/2026).<\/p>\n
Hasan explained that regional bonds have the potential to attract\nlocal residents to invest, allowing the community to contribute directly\nto the development of their respective regions.<\/p>\n
\u201cWe hope that these regional bonds or sukuk will not only increase\nfunding sources but also open opportunities for the public to\nparticipate and invest directly in regional development,\u201d he said.<\/p>\n
Furthermore, Hasan explained that several factors must be considered\nin the implementation of regional bonds. Local governments are expected\nto maintain information transparency regarding the issued bonds.<\/p>\n
\u201cTo balance this, various risk mitigations must be present in the\nregulations. This is our suggestion and the regulatory nuance we will\npush for. Generally, this includes information transparency. This must\nbe maintained not only during the initial public offering process but\nalso after the bonds or sukuk have been issued,\u201d he explained.<\/p>\n
Local governments would also be required to establish a specialised\nunit to manage regional bonds. This measure is intended to mitigate the\nrisks that may arise from bond issuance.<\/p>\n
\u201cTo ensure the governance and accountability of regional bond\nissuance, local governments must have a dedicated unit to manage\nregional bonds or sukuk. This is also for risk mitigation purposes,\u201d he\nadded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-supports-formation-of-regional-bond-bill-provides-key-notes-1780915265", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }