Bali Officials Study Regional Bond Scheme from Jakarta's Pramono Anung
Bali Governor Wayan Koster and Badung Regent I Wayan Adi Arnawa met with Governor Pramono Anung at Jakarta City Hall on Tuesday (4/8/2026). The meeting discussed opportunities for cooperation in financing development, infrastructure, culture, and tourism through a regional bond scheme.
The meeting was held in line with the Badung Regency Government’s plan to issue regional bonds. According to the Directorate General of Fiscal Balance at the Ministry of Finance, regional bonds are a source of medium- and/or long-term regional borrowing sourced from the public.
“We are opening ourselves up towards regional bonds. Because, from what I can see, our Debt Service Coverage Ratio appears to sufficiently meet the requirements,” said Adi Arnawa.
The issuance of regional bonds is considered essential for the Badung Regency Government to maintain the sustainability of the tourism sector. Adi Arnawa is optimistic that the acceleration of infrastructure development can proceed optimally with the completion of administrative requirements and regulatory support from the central government.
“Especially regarding the administrative process related to the implementation of regional bonds, and hopefully it will be supported by the central government in terms of regulation. We will certainly accelerate infrastructure development in Badung,” said Adi Arnawa.
Meanwhile, Pramono emphasised that regional governments need to implement creative financing to increase their regional budgets (APBD). Regions can no longer rely on conventional methods to resolve various development problems.
“There must be what is called thinking outside the box to address the main issues in the regions. For example, Badung’s APBD is one of the highest in the republic at Rp 13 trillion, and we discussed because Badung can certainly be like Jakarta in issuing regional bonds,” explained Pramono.
On the other hand, Koster revealed that this cross-regional government audience was a follow-up to a directive from Home Affairs Minister Tito Karnavian for the Bali Provincial Government and Badung Regency Government to conduct a benchmarking study with the Jakarta Provincial Government. In addition to the regional bond scheme, the discussion also covered optimising space utilisation and innovation in non-APBD financing sources.
“The first is regional bonds, the floor area ratio related to space utilisation, and the third is other innovations in infrastructure development financing sources from outside the APBD. I have already received several insights from the Governor of DKI Jakarta on solving problems to be applied in Bali Province,” said Koster.