Koster Meets Pramono, Studies Regional Bond Schemes and Creative Financing

Bali Governor I Wayan Koster met with Jakarta Governor Pramono Anung at Jakarta City Hall. The meeting discussed various development financing schemes outside the state budget (APBD), ranging from regional bonds to creative financing. Pramono stated that the meeting was also attended by Badung Regent I Wayan Adi Arnawa. According to him, current development challenges require regional governments to seek more innovative financing sources. “We discussed various matters, including creative financing, bonds, KLB (Building Floor Coefficient), SP3L, and others,” Pramono said at Jakarta City Hall on Tuesday (4/8/2026). Pramono noted that the current economic conditions mean that increasing the APBD can no longer rely on conventional methods. According to him, regional infrastructure financing can be pursued through different approaches. “Because, in any case, in economic conditions like these, the challenge of increasing the APBD cannot be done in conventional ways; there must be something out of the box,” he said. According to Pramono, one of the discussions was the opportunity for Badung to issue regional bonds to finance infrastructure development, particularly to address traffic congestion. He cited Badung’s APBD, which reaches approximately Rp 13 trillion, but still requires additional financing for strategic projects. “Badung can certainly do what Jakarta is doing in issuing regional bonds, so we discussed that,” he said. In addition, Pramono shared his experience regarding the implementation of the KLB policy in Jakarta. According to him, the compensation mechanism for buildings that exceed regulations can become a source of regional revenue. “If it is higher than the regulation, they must pay. Who is the payment for? For the people, for the community, to build Bali, to build Jakarta,” he stated. On the other hand, Pramono revealed that Jakarta’s plan to issue regional bonds has obtained in-principle approval from the central government. However, the process must still go through several stages. “DKI Jakarta cannot possibly take a step like this without central government approval. One of the in-principle approvals we have obtained is from the Coordinating Minister for Economic Affairs,” he said. He stated that approvals must also be obtained from the Ministry of Home Affairs, the Ministry of Finance, and Bappenas before the bonds are issued. Pramono also emphasised that Jakarta’s fiscal capacity remains very strong. According to him, Jakarta’s regional bond issuance capacity could reach Rp 20 trillion, but the provincial government only plans to issue around Rp 3.5 trillion. “Jakarta has the capacity for bonds of up to Rp 20 trillion, but we are only using Rp 3.5 trillion. So it is still very safe for Jakarta,” he said. Meanwhile, Bali Governor I Wayan Koster said his visit to Jakarta City Hall was a follow-up to the Minister of Home Affairs’ directive to study the financing schemes being prepared by the Jakarta Provincial Government. “We received a directive from the Minister of Home Affairs to study with the Governor of DKI regarding creative financing,” Koster said. He mentioned three main areas being studied: regional bonds, the utilisation of building coefficients in spatial planning, and various infrastructure financing innovations outside the APBD. Koster said a number of initiatives presented by Pramono would be studied further for implementation in Bali, especially in supporting infrastructure development and improving tourism quality. “We will follow up at the technical team level so that this process can run faster, and of course, we will adjust to existing regulations,” he added.