Pramono Explains Reasons for Issuing Rp 3.5 Trillion Regional Bonds in 2027

Jakarta Governor Pramono Anung Wibowo stated that the Jakarta Provincial Government plans to issue regional bonds worth Rp 3.5 trillion in 2027. The funds will be used to finance basic infrastructure development in the capital.

Pramono explained that the Jakarta Provincial Government has officially submitted the plan to the Ministry of Home Affairs and the Coordinating Ministry for Economic Affairs. The proposal has also been presented to the DPRD DKI Jakarta for discussion within the General Budget Policy and Provisional Budget Ceiling Priorities (KUA-PPAS) for the 2027 fiscal year.

“In principle, the central government has approved the plan to issue these regional bonds. Hopefully, the bonds can be issued in 2027,” Pramono said in Kebayoran Baru, South Jakarta, on Tuesday (21/7/2026).

He detailed that the Rp 3.5 trillion raised would be allocated for essential infrastructure projects in Jakarta, including the construction of the LRT, regional public hospitals (RSUD), schools, reservoirs, polders, and other public facilities. He assured that the financing is entirely for public benefit. “All of this financing is intended for the public interest, not for consumptive spending,” he said.

Pramono revealed that the Jakarta Provincial Government has made thorough preparations for the bond issuance. In addition to coordinating with the DPRD and the central government, his administration has also communicated with Bank Indonesia and the Financial Services Authority (OJK). “If these regional bonds can be issued next year, Jakarta will become the first regional government in Indonesia to issue regional bonds,” Pramono stated.

Chairman of the DPRD DKI Jakarta, Suhud Alynudin, welcomed the plan, calling it an important alternative funding source beyond locally-generated revenue (PAD). “This is a very important and historic breakthrough for Jakarta, and it is hoped it will become a model for other regions in Indonesia,” Suhud said.

He added that regional bonds are not the only alternative financing being prepared by the Jakarta Provincial Government. According to Suhud, the administration is also developing other creative financing schemes, though he stressed that all alternative financing mechanisms must have a solid legal basis. “Therefore, the DPRD DKI Jakarta is also encouraging the drafting of various regional regulations that can support the existence of alternative financial institutions as sources of development financing in DKI Jakarta,” the PKS politician said. Suhud expressed hope that all these efforts would proceed smoothly, enabling Jakarta to establish a sustainable alternative financing model that could serve as an example for development across Indonesia.