In Front of AHY, Pramono Mentions Jakarta Budget Cuts: Don't Add More

Jakarta Governor Pramono Anung raised the issue of budget cuts affecting the capital while attending the Jakarta Asset Forum and Expo (JAFEX) 2026. Pramono expressed hope that the cuts to Jakarta’s budget would not be increased further.

He made the remarks while opening JAFEX 2026 at the St Regis in South Jakarta on Tuesday (11/8/2026). The event was also attended by Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY).

Pramono began by explaining why the Jakarta provincial government needs to develop creative financing schemes. According to him, Jakarta’s development can no longer rely solely on the regional budget (APBD).

“As Governor of Jakarta, I understand why Jakarta needs creative financing. We use KLB funds for development. We also use regional bonds,” Pramono said.

Pramono said the Jakarta provincial government is targeting the issuance of regional bonds worth around Rp 5.2 trillion next year. He assessed that the nominal value is still manageable for Jakarta.

“Hopefully next year the Jakarta government can issue regional bonds of approximately Rp 5.2 trillion. And actually for Jakarta, this figure is not a difficult one,” he said.

Pramono then touched on the condition of Jakarta’s APBD, which has experienced cuts. He expressed hope that the cuts would not grow larger.

“Anyone would certainly be able to manage if Jakarta’s APBD is still being cut, as long as the cuts are not increased further. This is a good opportunity since the Coordinating Minister is here,” Pramono said.

Nevertheless, Pramono stressed that the Jakarta provincial government does not want Jakarta’s development to depend entirely on the APBD. He said a number of financing schemes will be utilised, ranging from floor area ratio (KLB), certificates of functional worthiness (SLF), letters of approval in principle for land acquisition (SP3L), to regional bonds.

“We are undertaking creative financing, one of which comes from KLB, SLF, SP3L, and also from regional bonds or municipal bonds,” he explained.

Pramono said the strategy is necessary to ensure Jakarta’s development continues amid budget constraints. He assessed that the utilisation of assets and creative financing can serve as alternative sources to support Jakarta’s development as a global city.

“In our development efforts, we no longer rely solely on the APBD,” he concluded.