Finance Minister Signals Caution over Jakarta Bonds

The Ministry of Finance has signalled caution over the Jakarta provincial government’s plan to issue bonds.

Suahasil Nazara said current global conditions were unfavourable, with yields on central government bonds already rising.

He made the remarks to journalists after attending the Indonesian Chamber of Commerce and Industry’s (Kadin) national leadership meeting in Jakarta on Friday (30 October 2026), when asked about Jakarta’s bonds.

Suahasil did not give a definitive answer on whether the Jakarta provincial government could not yet issue bonds. He stressed that any issuance must comply with applicable regulations and take account of prevailing conditions.

“Bonds are already governed by regulations. We will act in accordance with those rules. But the conditions for issuing bonds must, of course, be assessed continuously in light of what is happening. The global situation is not good at the moment,” he said.

Asked whether that meant Jakarta could not yet issue bonds, Suahasil said the decision rested with each party, but had to take global conditions and the rules into consideration.

He cited the rise in yields on central government bonds as a factor for anyone considering an issuance.

“Interest rates on central government bonds have risen. This should certainly be a consideration for anyone intending to issue bonds,” Suahasil said.

As an alternative, he said the central government was preparing various support options through the state budget (APBN). Discussions on the matter would continue.

“We are putting forward various options through the APBN, and these will remain an ongoing topic of discussion,” he said.

According to Suahasil, communication with the Jakarta provincial government was already under way. He cited projects in Jakarta funded directly or indirectly by the APBN, through either expenditure or financing.

“Some are funded through APBN expenditure, while others involve financing, such as the MRT. We continue to do this with all regional governments across Indonesia,” he said.