MPR Holds National Seminar to Discuss Challenges and Opportunities of Regional Bonds

The national seminar brought together various stakeholders, including representatives from the government, regulators, academics, and the financial sector. Speakers discussed the opportunities for issuing regional bonds as an alternative method for financing development.

Notable attendees included the Chairman of the Golkar Party Faction of the MPR RI, Melchias Markus Mekeng, and the Head of the Doctoral Programme in Economic Science at Sriwijaya University, Professor Didik Susetyo. Also present were the Director General of Regional Financial Management at the Ministry of Home Affairs, Agus Fathoni; the Head of the Department of Issuer Assessment, Public Companies, and Financial Derivative Licensing and Carbon Exchange at the OJK, I Made Bagus Tirthayatra; and the Finance and Treasury Director of Bank NTT, Heru Helbianto, alongside several regional heads from South Sumatra.

This national seminar was organised amidst the ongoing high dependence of Regional Revenue and Expenditure Budgets (APBD) on central government transfer funds, such as the General Allocation Fund (DAU), Special Allocation Fund (DAK), and Revenue Sharing Fund (DBH). Conversely, local governments are increasingly required to become more self-sufficient in financing development and improving public services.

Consequently, regional bonds are viewed as a strategic solution to strengthen regional fiscal capacity while creating opportunities for public participation in public investment. The event also served as a discussion forum to deepen the understanding of the opportunities, challenges, and implementation steps for regional bonds in Indonesia. Beyond being a development financing instrument, regional bonds are considered to have the potential to become a public investment instrument involving both the community and financial institutions in regional development.

It is hoped that this event will increase the understanding of local governments, legislatures, academics, and the public regarding the concepts and mechanisms of regional bonds. The initiative also serves as a step towards encouraging investor participation in regional public investment through capital market instruments.

The keynote speech was delivered by a member of the Audit Board of Indonesia (BPK RI), Bobby Adhityo Rizaldi. Other speakers included Melchias Markus Mekeng, Agus Fathoni, Professor Didik Susetyo, I Made Bagus Tirthayatra, and Heru Helbianto. The event was moderated by Aline Wiratmaja.