Bali Governor Koster Meets Jakarta Counterpart to Study Innovative Financing Schemes
Denpasar (ANTARA) - The Bali Provincial Government is studying innovative financing schemes from the DKI Jakarta Provincial Government, including the issuance of municipal bonds, to accelerate infrastructure development.
Bali Governor Wayan Koster said in Denpasar on Wednesday that his administration conducted a study visit to Jakarta on the instruction of the Minister of Home Affairs regarding innovative financing, one avenue being the issuance of municipal bonds.
“We received instructions from the Interior Minister to conduct a study to Jakarta on creative financing, one option being the issuance of municipal bonds,” he said.
Koster said his meeting with DKI Jakarta Governor Pramono Anung also discussed various infrastructure financing schemes outside the regional budget (APBD) as well as the utilisation of the Building Floor Coefficient (KLB) related to spatial planning.
According to him, the Bali Provincial Government received input and an overview of the strategic measures implemented by DKI Jakarta in development financing.
“We gained an overview of DKI Jakarta’s initiatives and strategic measures, which we will study further. There are several things that could be applied in Bali, particularly regarding the use of airspace, building height, and cooperation with the private sector to accelerate infrastructure development and improve the quality of Bali’s tourism,” he said.
Koster added that the results of the meeting would be discussed by the technical team in Bali before being adjusted to comply with prevailing regulations, including regional and gubernatorial regulations.
During the meeting, Koster was accompanied by Badung Regent I Wayan Adi Arnawa. Adi said around 74 per cent of Bali’s tourism activity is centred in Badung Regency, making improved infrastructure a primary need.
According to Adi, one current challenge is traffic congestion. To address it, the Badung Regency Government is building a new road section in South Badung through a collaborative financing scheme between the government and third-party loans.
He assessed that infrastructure development to support sustainable tourism still requires substantial financing, making the option of issuing municipal bonds worth considering.
Meanwhile, DKI Jakarta Governor Pramono Anung said regional governments need to develop innovative financing schemes rather than relying solely on regional budgets or central government transfers.
“In the current economic situation, we face challenges in increasing the regional budget. We cannot remain fixated on conventional patterns; we must think outside the box, one option being municipal bonds,” he said.
In addition, Pramono explained the application of the Building Floor Coefficient and the Principle Approval Letter for Location/Land Release (SP3L) in DKI Jakarta, which he considered could serve as a reference for the Bali Provincial Government.