Jakarta's bond issuance to proceed with central government assistance

Jakarta (ANTARA) - Deputy Coordinator of the Special Staff to the Governor of Jakarta, Yustinus Prastowo, said the plan to issue regional bonds has been accompanied by a number of central government institutions.

This refers to Minister of Finance Regulation (PMK) Number 87 of 2024 concerning Procedures for Issuance and Buyback of Regional Bonds and Regional Sukuk by Regional Governments.

“We are also accompanied by the Asian Development Bank (ADB) for the study process and other matters,” said Prastowo at Jakarta City Hall on Wednesday.

After discussions with the Jakarta Regional People’s Representative Council (DPRD), the Jakarta Provincial Government will continue the process with the central government, including the Ministry of Home Affairs, the National Development Planning Agency (Bappenas), and the Ministry of Finance.

He said the process will continue with the Financial Services Authority (OJK) before the regional bonds can be offered to the public.

Meanwhile, Head of OJK Jabodebek Edwin Nurhadi said his agency strongly supports regional bonds.

“So far we have been coordinating with BPKD and colleagues from the Coordinating Ministry for Economic Affairs. So, from OJK, of course, when it comes to the end, at the licensing stage, we will continue to pray and support. Hopefully in the next five centuries, next year, Jakarta’s regional bonds can be launched,” said Edwin.

The Jakarta Provincial Government plans to issue regional bonds worth Rp3.5 trillion. However, the value of the regional bonds to be issued by the Jakarta Provincial Government has increased to Rp5.6 trillion.

The bond issuance is planned to be carried out in stages, namely Rp4.2 trillion in 2027 and Rp1.3 trillion in 2028.