Pramono Responds to Plan to Issue Jakarta Bonds Worth IDR 3.5 Trillion

Jakarta Governor Pramono Anung has responded to a warning from Home Affairs Minister Tito Karnavian regarding the planned issuance of regional bonds worth IDR 3.5 trillion. Pramono stressed that he would consider all input from the central government before the policy is implemented.

According to Pramono, the bond value is not a problem for Jakarta’s fiscal condition. He expressed confidence that the provincial government has the ability to meet its payment obligations until maturity.

‘Actually, an IDR 3.5 trillion bond is not a hindrance for Jakarta, and Jakarta will certainly be able to resolve it properly, whoever the governor is. That is why the tenor is seven years,’ Pramono told reporters at City Hall, as quoted by Detikcom on Wednesday (29/7/2026).

Pramono explained that the bond issuance is one of the creative financing schemes prepared by the Jakarta provincial government to support development funding. He said the process has been carried out in accordance with regulations and has received support from the government.

‘Indeed, this regional bond is a form of creative financing that we are undertaking. But according to the rules, we have now received support or approval from the Coordinating Ministry for Economic Affairs,’ he said.

Nevertheless, Pramono confirmed he will continue to coordinate with the Home Affairs Ministry before realising the bond issuance.

‘Whatever happens, as governor, I will also listen to the input and suggestions from the Home Affairs Ministry. So that in due course, I will have a discussion with the Home Affairs Minister,’ he said.

Previously, Home Affairs Minister Tito Karnavian cautioned that the plan to issue regional bonds must be carefully assessed. Tito noted that bonds are essentially a debt instrument, so regional governments must ensure their fiscal capacity to repay the obligations.

‘Bonds are the same as debt. Is the regional budget capable of paying that debt? Do not let it become a burden for the next regional head. If they do not have the ability to pay, it will be troublesome,’ Tito said at the Ministry of Finance office in Jakarta on Monday (27/7/2026).

Tito admitted he has not yet discussed the plan specifically with the Jakarta provincial government. However, he emphasised that a regional head issuing bonds should ensure that repayment does not become a burden for the subsequent administration. According to him, the ability to repay debt must be the primary consideration before such a financing instrument is issued.