Pramono Plans to Issue 'Jakarta Bonds', Here's Purbaya's Response

Jakarta, CNBC Indonesia – Finance Minister Purbaya Yudhi Sadewa has responded to the Jakarta Provincial Government’s plan to issue municipal bonds, or ‘Jakarta Bonds’, which has been revived by Jakarta Governor Pramono Anung.

Purbaya questioned the urgency of issuing the debt if the Jakarta Provincial Government’s financial position still holds sufficient funds.

“It’s fine, if they want to issue them, go ahead — that’s the regional government’s own strategy,” Purbaya said when met at the DPR RI building in Central Jakarta on Monday (7/9/2026).

Nevertheless, Purbaya reminded regional governments to consider their needs carefully before taking on new debt.

“But in my view — and this is just my opinion — if there’s already plenty of money, why borrow?” he asserted.

According to Purbaya, the decision to issue municipal bonds is fundamentally part of regional government authority. Therefore, if the Jakarta Provincial Government deems bond financing necessary, the issuance can still proceed in accordance with prevailing regulations.

“But if it genuinely feels necessary, that’s fine — it’s their own autonomy,” he said.

Previously, Jakarta Governor Pramono Anung once again raised the plan to issue municipal bonds to support development financing in the capital.

The plan has become one of the regional government’s financing options amid funding needs for various development projects in Jakarta.

However, the issuance of municipal bonds still needs to take into account the region’s fiscal capacity and the financing requirements intended to be funded through debt.