Pramono cites regional capacity as reason for delay in bond approval

Jakarta Governor Pramono Anung Wibowo has revealed that the differing capabilities and budgets of each regional government are the reasons why the central government has not yet approved the issuance of regional bonds, including for Jakarta.

“This means that whatever we do as an alternative for creative financing, I realise that the central government has not approved it at this time. Why? Because not all regions have a budget like DKI Jakarta,” Pramono said when met at City Hall on Wednesday.

Pramono stated that this policy relates to the ability of regional governments to manage and meet budgetary obligations if they issue regional bonds as a form of non-APBD creative financing.

According to him, the financial condition of Jakarta differs from several other regions because its regional budget has been managed in an orderly and neat manner.

“For Jakarta, and I do not mean to boast, because the budget is already managed in an orderly and neat manner, these bonds could serve as a reinforcement for the Jakarta Provincial Government.

“Perhaps for some other provincial regions, these bonds should not be used to obtain budget or creative financing if the budget itself is unable to cover the obligations,” he explained.

Pramono said that his experience of almost 15 years in the central government has allowed him to understand the directives and policies of the central government regarding the issuance of regional bonds.

Therefore, he stated that the Jakarta Provincial Government will comply with whatever decision the central government makes regarding bond issuance.

“If we receive permission, we will proceed; if not, then so be it. The Jakarta Provincial Government will practice ‘sami’na wa ato’na’ (we hear and we obey). We will follow whatever the decision of the central government is,” said Pramono.