Jakarta and Bali Discuss Creative Funding Schemes to Expand Financing Sources
Jakarta (ANTARA) - The Jakarta Provincial Government and the Bali Provincial Government are discussing the development of creative funding schemes to expand sources of development financing amid limited regional fiscal space.
The discussion also covers preparations for the issuance of municipal bonds as an alternative source of development financing, the utilisation of the Building Floor Coefficient (KLB), the Letter of Principle Approval for Land Release (SP3L), and various other financing instruments.
“In any case, in the current economic conditions, the challenge of increasing the regional budget can no longer be done in conventional ways. There must be breakthroughs or out-of-the-box approaches,” said Jakarta Governor Pramono Anung when receiving a visit from Bali Governor I Wayan Koster and Badung Regent I Wayan Adi Arnawa and their delegations at Jakarta City Hall on Tuesday.
Pramono said that the Jakarta Provincial Government is currently preparing the issuance of municipal bonds as one of the instruments to support the acceleration of development without fully relying on the regional budget (APBD).
The meeting also formed part of the strengthening of Jakarta-Bali cooperation, which was set out in a Joint Agreement on the Development of Regional Potential and Improvement of Public Services dated 10 July 2023.
The agreement covers the fields of culture, tourism and the creative economy, food security, human resource competency development, strengthening of regionally owned enterprises, and public transport development.
Pramono expressed hope that the cooperation would soon be translated into technical programmes delivering tangible benefits to communities in both regions, whether through the development of development financing or improvements in the quality of public services.
Meanwhile, Bali Governor I Wayan Koster said the results of the discussion would be immediately followed up by the technical team so that the preparation process would run faster while remaining in compliance with regulations.
“We will immediately follow up on this discussion at the technical team level so the process runs faster. We will adjust it to the prevailing regulations, both Regional Regulations and Governor Regulations,” said Koster.