Governor Pramono Prepares Creative Financing with Jakarta's First Rp 3.5 Trillion Municipal Bond
Jakarta Governor Pramono Anung will issue Indonesia’s first regional bond, named the Jakarta Bond. The bond will be used to finance the public interest in Jakarta.
Pramono made the announcement at the Jakarta Budget Talks: Navigating Jakarta’s Regional Budget — Strengthening Performance, Safeguarding the Public Interest — held at Jakarta City Hall on Wednesday (22/7/2026). Pramono said the Jakarta Bond is intended to raise Jakarta’s international profile.
“We are starting with the Jakarta Bond. Hopefully subscriptions will be high, so that Jakarta becomes better known globally,” Pramono said.
Pramono expressed confidence that the Jakarta Bond would make Jakarta’s regional budget more robust, with the benefits felt by all residents.
“Jakarta is certainly capable, and with this bond, its budget will become more robust, healthier, and hopefully bring greater benefit to the public,” he said.
Pramono then explained the details of the Jakarta Bond, which has a set value and tenor. So, what should be known about the Jakarta Bond?
To be issued in June 2027
Pramono said the Jakarta Bond will be issued in June 2027. The bond has a value of Rp 3.5 trillion with a seven-year tenor.
“Hopefully, in June next year we will issue a regional bond worth Rp 3.5 trillion, with a seven-year tenor,” Pramono said.
Indonesia’s first regional bond
Pramono explained the reasoning behind the Rp 3.5 trillion figure, saying it is because this will be Indonesia’s first regional bond.
“Why Rp 3.5 trillion? Jakarta’s actual capacity is far greater than that. But we know this is the first regional bond to be launched in this republic. And if this succeeds as a creative financing instrument, I am confident it can be replicated in other regions,” Pramono said.
The concept of creative financing
Pramono likened the bond issuance to a wealthy person who borrows money despite having ample financial means, in order to keep their finances healthier.
“There are many rich people who do not actually need to borrow but still do, because it makes their balance sheet healthier,” he said.
Pramono stressed that Jakarta’s finances remain strong despite being affected by cuts to the revenue-sharing fund (DBH) from the central government. The bond is therefore not being issued to cover a budget shortfall, but as an alternative source of development financing.
“It is the same with Jakarta. Even though there have been DBH cuts, we are undertaking creative financing so that Jakarta’s finances become far healthier, transparent and open,” he said.
Jakarta Bond to finance the public interest
He said the Jakarta Bond will be used for the public interest, including hospital development and the expansion of the MRT.
“Whether for the MRT, or for hospitals, because Jakarta will now build two international hospitals, one of them at Sumber Waras. And Sumber Waras is already complete,” Pramono said.
He wants Jakarta to become something new, and it all starts with Jakarta.
“I want Jakarta to become something new, and we start with Jakarta. And we begin,” he said.