DKI Jakarta Targets Rp 3.5 Trillion Bond Issuance in June 2027
The DKI Jakarta provincial government is targeting the issuance of regional bonds worth Rp 3.5 trillion in June 2027. The financing instrument is projected to serve as one of the alternative funding sources to accelerate infrastructure development and improve the quality of public services.
“The plan for the regional bond issuance has been proposed in the 2027 APBD KUA-PPAS. These bonds will become one of the alternative financing options for regional development to support various public service projects,” said Jakarta Governor Pramono Anung in a written statement on Tuesday, 21 July 2026.
Pramono explained that the regional bond issuance plan has been proposed in the general budget policy and provisional budget ceiling (KUA-PPAS) of the 2027 regional budget as one of the strategies to strengthen regional development financing.
The regional bonds are planned to have a maximum tenor of seven years. The coupon rate will be set with consideration of the conditions and dynamics of the financial market at the time of issuance, so that the financing remains efficient and competitive. The proceeds from the regional bond issuance will be focused on the construction of the Manggarai–Dukuh Atas LRT Phase 1C, regional general hospitals (RSUD), new school units, retention basins and polders for flood control, as well as apartment blocks.
Pramono said that preparations for the regional bond issuance continue to be refined through coordination with the central government. The DKI Jakarta provincial government submitted a request for support on 12 June 2026, which was followed up with a letter of support from the Coordinating Ministry for Economic Affairs on 10 July 2026. The process has also received assistance from various ministries and agencies.
As part of the preparation stages, the DKI Jakarta provincial government held a capacity building event on creative financing on 20–21 July 2026. The event was supported by the DKI Jakarta Regional Legislative Council (DPRD), the Ministry of Home Affairs, the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Financial Services Authority (OJK), the World Bank, UNDP, and a number of development partners to strengthen the readiness of all stakeholders in the regional bond issuance process.