{
    "success": true,
    "data": {
        "id": 1477922,
        "msgid": "regions-to-be-allowed-to-issue-bonds-1447893297",
        "date": "2004-03-20 00:00:00",
        "title": "Regions to be allowed to issue bonds",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Regions to be allowed to issue bonds The Jakarta Post, Jakarta The country's regional governments will be allowed to issue rupiah-denominated bonds once the current revision of legislation on regional autonomy and fiscal balance has been approved by the House of Representatives, according to a senior government official.",
        "content": "<p>Regions to be allowed to issue bonds<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>The country&apos;s regional governments will be allowed to issue<br>\nrupiah-denominated bonds once the current revision of legislation<br>\non regional autonomy and fiscal balance has been approved by the<br>\nHouse of Representatives, according to a senior government<br>\nofficial.<\/p>\n<p>Director General of Fiscal Balance for the Central Government<br>\nand Regional Administration Machfud Sidik said on Friday that<br>\nlocal administrations planning to issue bonds had to meet certain<br>\nrequirements.<\/p>\n<p>The administrations are required to publish their budget, for<br>\nscrutinization by investors. Proceeds from the bonds must only be<br>\nused for public projects that can generate cash. The budget must<br>\nalso place a priority on servicing the debt.<\/p>\n<p>&quot;The bottom line is that the local governments must meet<br>\ncapital market requirements like any other company raising cash<br>\nfrom the public,&quot; Machfud said.<\/p>\n<p>He said that if a region failed to comply with the<br>\nrequirement, the government would consider banning all regions,<br>\nor just the offending one from issuing bonds again.<\/p>\n<p>He said that during the last Cabinet meeting, ministers had<br>\nessentially agreed on the draft of the amendment to the regional<br>\nautonomy law and fiscal balance law. &quot;Only minor corrections<br>\nremain.&quot;<\/p>\n<p>The two laws were issued in 1999 as a legal basis for the<br>\nimplementation of the government&apos;s regional autonomy policy,<br>\nunder which regions are given authority to manage their economic<br>\nand social affairs. But as complaints were voiced about the poor<br>\nimplementation of regional autonomy policy, the government<br>\nrevised the two laws.<\/p>\n<p>Despite the autonomy, regions have not been allowed to issue<br>\ntheir own debt instruments to help finance their administrations<br>\non fears that massive borrowing by regional governments could<br>\ncreate another financial crisis like that in Brazil.<\/p>\n<p>&quot;But this policy is only temporary; we can&apos;t stop completely<br>\nthe regions from borrowing,&quot; Machfud said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/regions-to-be-allowed-to-issue-bonds-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}