Jakarta's Regional Bond Plan Hailed as Right Solution for Sustainable Development

The plan by the Jakarta Provincial Government to issue regional bonds is considered a strategic step to maintain the sustainability of the city’s development. This financing scheme is seen as an answer amid the decline in budget allocations from the central government. Public policy analyst from Trisakti University, Trubus Rahardiansah, assessed that this funding innovation deserves appreciation because it does not burden the public with new tax levies. “If it is beneficial for Jakarta’s development, this regional bond issuance is a good move. At least, Mr Pramono is looking for a solution amid the reduction in Revenue Sharing Funds and General Allocation Funds from the central government. Therefore, the Jakarta Provincial Government needs to seek other sources of funding,” said Trubus in Jakarta on Thursday. He explained that regional bonds are an ideal long-term financing instrument to support various sustainable infrastructure projects that have a direct impact on the community. “Ultimately, the funds collected are public money that must be used again for Jakarta’s development and the welfare of its people,” Trubus stated. Trubus added that the courage of Jakarta Governor Pramono Anung in seeking alternative financing beyond the conventional regional budget has the potential to become a national reference. “This way of thinking provides space for other regions to look for alternative financing like this. If successful, Jakarta could become a role model for other regions,” he said. He noted that the Jakarta Provincial Government actually has a great opportunity to increase regional revenue from other fiscal instruments, such as imposing taxes on electric vehicles or implementing an electronic road pricing system. However, the option of imposing additional taxes was deliberately avoided so as not to burden residents. Trubus gave an example that if electric vehicles were taxed, the proceeds could at least be used for road construction. Similarly, paid roads for both motorcycles and cars could become a significant source of income. “But Pramono did not take that step to impose additional taxes,” Trubus revealed. The Jakarta Provincial Government is targeting the issuance of regional bonds worth Rp5.2 trillion in 2027, coinciding with the city’s 5th centenary. Governor Pramono Anung emphasised that this instrument is designed to accelerate strategic infrastructure development and improve the quality of public services in the capital.