Jakarta Plans to Issue Rp3.5 Trillion in Bonds, Finance Minister Purbaya Questions Necessity
Jakarta, CNBC Indonesia — Finance Minister Purbaya Yudhi Sadewa has spoken out about the Jakarta Provincial Government’s plan to issue municipal bonds worth Rp3.5 trillion in June 2027.
Purbaya said his office had not been informed of the plan by the Jakarta Provincial Government, and admitted he was puzzled given the province’s still-substantial regional budget.
“I don’t yet know about Jakarta wanting to issue bonds. Why would they issue bonds when they have plenty of money in the regional budget?” Purbaya told reporters after a debottlenecking session on Thursday (23 July 2026).
When asked whether the bonds would serve as a new financing instrument, Purbaya again expressed puzzlement, noting that much of Jakarta’s regional budget remains unused.
“They have plenty of money. There are still trillions unused,” he added.
He said his office had also received no communication from the Jakarta Provincial Government regarding the bond issuance. However, Purbaya said he would meet with Jakarta Governor Pramono Anung to discuss the matter.
Purbaya also addressed whether the bond issuance would be risky.
“I don’t know, but I’ll check with them later. The point is, if it’s credible and Jakarta has plenty of money, it’s actually not dangerous. The only question is, the money isn’t being used much, so what’s it for?” he explained.
Earlier, Pramono said the issuance of the regional debt papers is scheduled to coincide with the 500th anniversary of the city of Jakarta.
According to him, the financing instrument will serve as an alternative funding source to accelerate infrastructure development and improve the quality of public services.
Pramono stressed that the bond issuance plan has been proposed in the General Budget Policy and Temporary Budget Ceiling Priorities (KUA-PPAS) for the 2027 regional budget, as one strategy to strengthen regional development financing.
“The plan to issue regional bonds has been proposed in the KUA-PPAS for the 2027 fiscal year. These bonds will become one of the alternative financing sources for regional development to support various public service projects,” Pramono said in a press statement quoted on Wednesday (22 July 2026).
The regional bonds are planned to have a maximum tenor of seven years. The coupon rate will be set with consideration of conditions and dynamics in the financial markets at the time of issuance, so that the financing remains efficient and competitive.
Proceeds from the bond issuance will be focused on the construction of the Manggarai-Dukuh Atas LRT Phase 1C, regional general hospitals (RSUD), new school units, retention basins and polders for flood control, as well as high-rise public housing.
In the process, the Jakarta Provincial Government submitted a request for support to the central government on 12 June 2026 regarding the municipal bond issuance.
The request was followed up with a letter of support from the Coordinating Ministry for Economic Affairs on 10 July 2026. The process has also received guidance from various ministries and agencies.