Proposal to issue municipal bonds hailed<\/p>\n
JAKARTA (JP): City councilors hailed yesterday the city
\nadministration's plan to issue municipal bonds as one of the
\nalternatives to help raise locally generated revenue.<\/p>\n
Head of Commission C for financial affairs Amarullah Asbah
\nurged the administration to prepare all the requirements needed
\nfor the issuance of the bonds as soon as possible.<\/p>\n
\"I'll give it my full support,\" he said, urging the
\nadministration to think of other possible alternatives and to
\nreduce its heavy dependency on the collection of taxes and
\nlevies.<\/p>\n
Head of Commission B for economic affairs Djafar Badjeber said
\nthe administration had better consult with the institutions
\nconcerned, including the Capital Market Supervisory Agency, about
\nthis plan so all the requirements can be studied.<\/p>\n
The administration's plan to issue the bonds was revealed on
\nMonday by City Secretary Fauzi Bowo.<\/p>\n
He said that the administration had been discussing the
\npossibility of issuing bonds with the Ministry of Finance and
\nMinistry of Home Affairs.<\/p>\n
\"Their (the ministries) responses have been supportive so far.
\nHowever, we still have to work very hard on it since there is
\ncurrently no law which regulates the possibility of a regional
\nadministration issuing such bonds,\" he said.<\/p>\n
Contributions<\/p>\n
Fauzi said the proposal was made in a bid to help reduce the
\nadministration's dependency on the collection of taxes and levies
\nas the main source of its locally generated revenue.<\/p>\n
He said that the administration could no longer depend on
\ncity-owned companies or joint venture firms.<\/p>\n
\"We all know that the companies' contributions to our locally
\ngenerated revenues are still too low,\" he said.<\/p>\n
He said that municipal bonds were not a new idea, in some
\nother countries the sales of the bonds were quite popular, he
\nadded.<\/p>\n
Fauzi, however, did not give details on the bonds issuance
\nplan.<\/p>\n
\"I don't know when we could realize the plan. But the bonds
\ncould be offered by city-owned companies to the public and
\nunderwritten by the administration,\" he said.<\/p>\n
Djafar believed that the administration would not find too
\nmany obstacles if it could enhance the city-owned companies'
\nperformances first.<\/p>\n
\"If the companies are to issue bonds on behalf of the
\nadministration, then they should first improve their
\nperformance,\" he said.<\/p>\n
Head of Commission D for development affairs Ali Wongso Sinaga
\nsaid, \"It will be good if the administration could issue bonds to
\nsupport its major projects, like the subway and reclamation of
\nnorthern areas of North Jakarta.\"<\/p>\n
He said the management of the projects must be more
\nprofessional and transparent to compensate the funds invested by
\nthe investors. (cst)<\/p>",
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