Herman Deru says regional bonds could be a solution for development financing

Herman Deru said this at the National Seminar titled National Seminar on Regional Bonds as One Alternative for Regional Financing and Public Investment Instrument, organised by the People’s Consultative Assembly of the Republic of Indonesia at the Aston Palembang Hotel & Conference Centre. On this occasion, he highlighted that the mechanism for issuing regional bonds is still too lengthy. He argued that the government should streamline the licensing process so that regional administrations can access the financing instrument more easily. Currently, regional governments must go through a number of stages, from internal regional preparations, approval by the Regional House of Representatives (DPRD), the Ministry of Home Affairs (Kemendagri), Bappenas, to the final process at OJK. “There shouldn’t be too many channels. The process should be made simpler,” he said in a written statement, Thursday (21 May 2026). He also proposed a special regulation governing a one-stop mechanism in the processing of regional bonds. “If possible, a single window should be created for its handling. Do not have too many mechanisms. A regulation or legal umbrella could be established appointing one responsible party, after which coordination between ministries and agencies would be carried out internally,” he added. In addition, Herman Deru complimented the MPR RI for selecting South Sumatra as the venue for the national seminar. “We also wish to extend our thanks to the MPR RI for organising the National Seminar in South Sumatra, particularly Palembang,” he said. He noted that all regional heads in South Sumatra, along with the secretary-general (Sekda), attended the event because it was deemed important to broaden knowledge about alternatives for financing regional development. “All regional heads attended; in fact, there was even a regent whom I invited after the first activity where I myself planted rice in OKI earlier. Because, in my view, this activity is very good and broadens knowledge for regional heads,” he said. Furthermore, Herman Deru stated South Sumatra’s readiness to become a model province in the implementation of regional bonds to support the achievement of regional development targets. “South Sumatra is ready to be the model province for the MPR RI so that RPJMD can be achieved despite the various obstacles at present,” he concluded. It is known that the National Seminar held on Tuesday (19 May) was conducted amid the ongoing high dependence of the APBD on government transfer funds such as DAU, DAK and DBH. Therefore, regional bonds are seen as a strategic alternative to strengthen regional fiscal capacity while also opening space for public participation in public investment. The event also served as a forum for discussion on opportunities, challenges and strategic steps for implementing regional bonds in Indonesia. In addition to being a financing instrument for development, regional bonds are also viewed as potential public investment instruments involving the community and financial institutions in regional development.