Analyst: Regional bond issuance a solution to sustain Jakarta's development

Jakarta (ANTARA) - Public policy analyst from Trisakti University, Trubus Rahardiansah, believes the Jakarta provincial government’s plan to issue regional bonds is a viable solution to sustain development in the capital, particularly given the reduction in budget support from the central government. “If it is beneficial for Jakarta’s development, this regional bond issuance is a good step. Governor Pramono is seeking a solution amidst the reduction in DBH (Revenue Sharing Funds) and TKD (Regional Transfer Funds) from the central government. Therefore, the Jakarta provincial government needs to find other sources of funding,” Trubus said in Jakarta on Thursday. He explained that regional bonds are a long-term financing instrument that can be utilised to support various development projects that benefit the public. “Ultimately, the funds raised are public money that must be used for Jakarta’s development and the welfare of its people,” Trubus stated. He also appreciated Pramono’s mindset in seeking new financing sources. If the regional bond scheme can be implemented effectively, Jakarta has the potential to become an example for other regional governments in diversifying funding sources beyond conventional budgets. “This way of thinking provides room for other regions to seek alternative financing like this. If successful, Jakarta could become a role model for other regions,” he said. However, he noted that Pramono chose not to burden the public with new taxes. Trubus cited examples such as imposing taxes on electric vehicles, the proceeds of which could minimally be used for road construction, or implementing paid roads for both motorcycles and cars, which could be a significant source of revenue. “But Pramono did not take the step to levy additional taxes,” Trubus revealed. As previously reported, the Jakarta provincial government is targeting the issuance of regional bonds worth Rp5.2 trillion in 2027, coinciding with the commemoration of Jakarta’s 5th centenary. Jakarta Governor Pramono Anung Wibowo stated that this financing instrument is projected to be an alternative source of funding to accelerate infrastructure development and improve the quality of public services. “The plan to issue regional bonds has been proposed in the KUA-PPAS (General Budget Policy and Provisional Budget Ceiling Priorities) for the 2027 APBD (Regional Revenue and Expenditure Budget). These bonds will serve as an alternative for regional development financing to support various public service projects,” Pramono said during a Capacity Building event on Regional Bond Issuance at the Tribrata Hotel and Convention Center, Jalan Darmawangsa Raya, South Jakarta, on Tuesday (4/8).