Legislator Supports Jakarta Provincial Government's Plan to Issue Regional Bonds

Jakarta (ANTARA) - Member of Commission C of the Jakarta Regional House of Representatives (DPRD), Hardiyanto Kenneth, supports the Jakarta Provincial Government’s plan to issue regional bonds worth Rp5.2 trillion as an alternative financing mechanism for development in Jakarta. “This step is a form of financing innovation that deserves support as long as it is carried out transparently, accountably, and oriented towards the public interest,” Kenneth said in Jakarta on Thursday. He assessed that amidst increasing development needs and fiscal challenges, regional governments must present various creative financing schemes so that development can continue without relying entirely on the Regional Budget (APBD). “In principle, I greatly appreciate the efforts of Jakarta Governor Pramono Anung to introduce various creative financing schemes, including the plan to issue regional bonds worth Rp5.2 trillion,” Kenneth stated. According to him, given the fiscal challenges and growing development needs of Jakarta, the regional government is indeed required to innovate in seeking sustainable funding sources so as not to depend solely on the APBD. “This demonstrates the courage to seek more modern and comprehensive financing alternatives, as has been implemented in many major cities around the world,” Kenneth remarked. Therefore, the use of bond funds must be focused on productive projects that have a direct impact on improving public services and regional economic growth. Kenneth assessed that issuing regional bonds is not merely about obtaining additional funds, but also about ensuring that every rupiah raised truly provides long-term benefits for the community. He also reminded that the proceeds from the bonds must be strictly directed to finance productive projects with tangible economic and social impacts, such as the development of transport infrastructure, the health sector, and infrastructure capable of improving the quality of life for Jakarta residents. “These bonds must not be used for routine or consumptive expenditure,” Kenneth asserted. He emphasised the importance of good governance, from the planning process and project determination to the use of funds from the bond issuance. “As part of the oversight function in the DPRD, I will certainly monitor every stage of this policy to ensure it is implemented according to the principles of good governance,” Kenneth said. Starting from the planning process, project selection, issuance mechanism, to budget utilisation, he stated, must be carried out transparently, accountably, and be accountable to the public. “Investor confidence will only be built if the government can demonstrate fiscal discipline, financial management credibility, and certainty that the financed projects have measurable benefits,” Kenneth stressed. As is known, Jakarta Governor Pramono Anung plans to issue regional bonds worth Rp5.2 trillion following a reduction in Revenue Sharing Funds (DBH) and Transfers to Regions (TKD) of approximately Rp15 trillion.