Jakarta's Rp5.2 Trillion Bond Plan Must Deliver Real Impact, Says DPRD's Kenneth

Central government budget cuts need not slow development in Jakarta. Amid a reduction of around Rp15 trillion in Revenue Sharing Funds (DBH) and Regional Transfers (TKD), Jakarta Governor Pramono Anung plans to issue regional bonds worth Rp5.2 trillion.

Responding to the plan, Jakarta DPRD Commission C member Hardiyanto Kenneth expressed appreciation for the provincial government’s initiative, describing it as a financing innovation worthy of support provided it is carried out transparently, accountably and with the public interest in mind.

Kenneth, known as Bang Kent, said that amid growing development needs and fiscal challenges, regional governments must present creative financing schemes so that development can continue without relying entirely on the Regional Budget (APBD).

“In principle, I greatly appreciate Governor Pramono Anung’s efforts to introduce various creative financing schemes, including the planned issuance of Rp5.2 trillion in regional bonds. Amid fiscal challenges and Jakarta’s increasing development needs, regional governments are indeed required to innovate in seeking sustainable funding sources without solely depending on the APBD. This demonstrates the courage to pursue more modern and comprehensive financing alternatives, as has been applied in major cities around the world,” Kenneth said in a statement on Thursday (6/8/2026).

The PDI Perjuangan politician stressed that the issuance of regional bonds must not be viewed merely as an effort to obtain additional funds, but must deliver long-term benefits for the public. Therefore, bond proceeds must be focused on productive projects that directly improve public services and regional economic growth.

“I believe that issuing regional bonds is not simply about obtaining additional funds, but also about ensuring that every rupiah raised genuinely provides long-term benefits for the public. Bond proceeds must be strictly directed towards financing productive projects with tangible economic and social impact, such as transport infrastructure, the health sector and infrastructure that improves the quality of life for Jakarta residents. These bonds must not be used for routine or consumptive spending,” he said.

As a member of Commission C, which oversees regional finance, Kenneth assured that the DPRD would exercise its oversight function over every stage of the bond issuance. He emphasised the importance of good governance from planning and project selection through to the use of bond proceeds.

“As part of the DPRD’s oversight function, I will certainly monitor every stage of this policy to ensure it is implemented according to the principles of good governance. From planning, project selection and the issuance mechanism to budget utilisation, everything must be carried out transparently, accountably and in a manner that can be justified to the public. Investor confidence will only be built if the government can demonstrate fiscal discipline, credible financial management and certainty that the projects financed have measurable benefits,” said the Lemhannas RI PPRA Batch LXII alumnus.

Kenneth also reminded the Jakarta administration to conduct a comprehensive assessment of the region’s fiscal capacity to meet future principal and interest payment obligations. He said every financing policy must be based on realistic projections so as not to burden regional finances in the future.

“I also see the importance of conducting a thorough assessment of the Jakarta Provincial Government’s fiscal capacity to meet every future principal and interest payment obligation. Although Jakarta’s fiscal condition has been relatively strong and the administration has assured that this bond issuance will not burden future governments, every projection must still be based on conservative calculations that take into account various economic risks, changes in regional revenue and national policy dynamics. This is important so that today’s policy does not become a burden for future Jakarta administrations,” he said.

Kenneth also urged the Jakarta administration to open the widest possible communication channels with the DPRD, market players, academics and the public regarding the objectives, benefits and mechanisms of the regional bond issuance. He said transparency is a key factor in building public trust and boosting investor interest.

“I also hope the Jakarta government can open the widest possible communication channels with DPRD institutions, market players, academics and the public regarding the objectives, benefits, risks and mechanisms of the regional bonds. Transparency from the outset will build public trust while avoiding misunderstandings that these bonds are synonymous with an increased regional debt burden. In fact, if managed professionally, bonds are a healthy and productive development financing instrument,” he said.

Kenneth stressed that the Jakarta DPRD is fundamentally ready to support any policy aimed at accelerating development and improving the quality of public services, provided it is implemented based on prudential principles, accountability and a strong evidence base.

“We in the Jakarta DPRD are ready to support any policy that genuinely serves the public interest. The ultimate goal is not merely to provide additional financing sources, but to ensure Jakarta continues to improve in the future,” he concluded.

Meanwhile, public policy analyst from Trisakti University, Trubus Rahardiansah, assessed that the Jakarta Provincial Government’s plan to issue regional bonds is a step that could serve as a solution to maintain development sustainability in the capital, particularly amid reduced budget support from the central government.

According to Trubus, the policy represents Pramono’s effort to seek alternative funding sources after DBH and TKD for the Jakarta administration were cut.

“If it is indeed beneficial for Jakarta’s development, issuing regional bonds is a good step. At the very least, Mr Pramono is seeking solutions amid the reduction in DBH and TKD from the central government. Therefore, the Jakarta administration needs to find other funding sources,” Trubus said when contacted.

He explained that regional bonds are a long-term financing instrument that can be used to support various development projects that benefit the public.

“This is part of the Jakarta administration’s effort to seek long-term development financing sources. Ultimately, the funds raised are public money that must be used for Jakarta’s development and public welfare,” he said.

Trubus also said Pramono’s approach to seeking new financing sources deserves appreciation. He noted that if the regional bond scheme is successfully implemented, Jakarta could become an example for other regional governments in developing funding sources beyond conventional budgets.

“Clearly, Mr Pramono’s approach opens space for other regions to seek alternative financing like this. If successful, Jakarta could become a role model for other regions,” he said.

On the other hand, Trubus noted that the Jakarta administration actually has opportunities to increase regional revenue through various fiscal instruments, such as imposing levies on electric vehicles or electronic road pricing (ERP). However, he said Pramono has chosen not to burden the public with new taxes.

“For example, electric vehicles could be taxed, with the proceeds at minimum used for road construction. Likewise, road pricing for vehicles, both motorcycles and cars, could potentially be a major source of revenue. But Mr Pramono has not taken that step to impose additional taxes,” he concluded.