Pramono pushes Finance Ministry to speed up review of Jakarta bonds

“If a review is being conducted, we will thank the finance minister and ask that it could be expedited,” Pramono said at the Bundaran HI MRT Station in Jakarta on Wednesday.

Jakarta plans to issue the bonds in 2027, coinciding with Jakarta’s 500th anniversary, as part of efforts to diversify funding sources for infrastructure development and improve public services.

Pramono said the proposed bond scheme was intended to ensure the city’s creative financing was implemented in a sound and transparent manner and suited to the characteristics of the infrastructure projects being funded.

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The regional bonds are planned to have a maximum tenor of seven years. The coupon rate will be determined by taking into account financial market conditions and dynamics at the time of issuance, ensuring that the financing remains efficient and competitive.

Proceeds will be used to finance several infrastructure projects, including the first phase of the LRT 1C line connecting Manggarai and Dukuh Atas, regional public hospitals, new schools, flood-control retention ponds and polders, as well as public housing.

Preparations for the regional bond issuance are continuing through coordination with the central government.

The Jakarta administration submitted a request for support on June 12, which was followed by a letter of support from the Coordinating Ministry for Economic Affairs on July 10.

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Translator: Luthfia Miranda, Kuntum Khaira