Finance Minister Questions Jakarta's Plan to Issue Bonds, Citing Unused Funds

Finance Minister Purbaya Yudhi Sadewa has responded to the Jakarta Provincial Government’s plan to issue bonds worth Rp 3.5 trillion. He questioned the plan, arguing that the regional government still has substantial funds that remain unspent. “Why issue bonds? They have plenty of money, there are still trillions of rupiah that haven’t been used,” Purbaya said at the Ministry of Finance in Jakarta on Thursday, 23 July 2026. Despite this, Purbaya stated that the Jakarta government’s move to issue bonds is not actually dangerous for the financial aspects of the Jakarta Provincial Government. This is because the regional government’s financial condition is considered strong. However, Purbaya admitted he was puzzled and questioned the Jakarta Provincial Government’s plan to issue debt securities when they are in good financial health. “If they are credible like Jakarta, with plenty of money, it’s actually not dangerous. But the question is, they have a lot of unused money, so why issue bonds?” Purbaya asked. “But I don’t know, I will check with them again later,” he said. Jakarta Governor Pramono Anung had previously explained that the plan to issue regional bonds worth Rp 3.5 trillion was not because the regional budget was in deficit. At the ‘Jakarta Budget Talks’ event at Jakarta City Hall on Wednesday, 22 July 2026, Pramono said that bonds are a creative financing instrument to make budget management healthier and more transparent. “Why Rp 3.5 trillion? Actually, Jakarta’s size is much larger than that. But we know this is the first time regional bonds have been launched in this republic. And if this succeeds as a creative financing instrument, I am sure it can be replicated in other regions,” he said.