Pramono to Issue Rp 3.5 Trillion Regional Bonds for Education and Hospitals

Jakarta Governor Pramono Anung has confirmed that the DKI Jakarta Provincial Government will issue regional bonds worth Rp 3.5 trillion this year. The proceeds from the bond issuance will be prioritised to finance the education sector and the construction of an international hospital in the Sumber Waras area.

“This year, Jakarta will issue Rp 3.5 trillion in regional bonds, and the process is already underway. This is an exercise for us at the beginning,” Pramono said in the SCBD area, South Jakarta, on Tuesday (30/6/2026).

The bond issuance plan emerged after the provincial government sought alternative funding sources in the wake of budget cuts amounting to approximately Rp 15 trillion. Initially, the government intended to establish a Jakarta Collaboration Fund, a concept similar to a sovereign wealth fund. However, regulatory constraints hindered the formation of this scheme, leading the administration to opt for issuing regional bonds instead.

“We have sent an official letter to the Minister of Finance and the Minister of Home Affairs to request permission for Jakarta to have this Jakarta Collaboration Fund. It is essentially the same as the INA or a sovereign wealth fund. Ultimately, we found room to issue regional bonds. Issuing regional bonds is easier. We are cooperating with SMI and the Ministry of Finance,” he explained.

Pramono stated that the bond funds would not be used for business activities. Instead, the proceeds will be focused on basic public needs. “What is this Rp 3.5 trillion bond for? Firstly, for education. Secondly, part of it will serve as initial capital to build the Sumber Waras Hospital. It is also for education in Jakarta. So, it is truly for the most basic, most elementary purposes in Jakarta, not for business matters,” he clarified.

The former Cabinet Secretary is optimistic that Jakarta’s regional bonds will attract investors. He noted that the Rp 3.5 trillion figure is relatively small compared to the city’s fiscal capacity. “I believe that for Jakarta, Rp 3.5 trillion is not a difficult figure. If there are any problems, they can be covered,” he said.

Regarding the regional budget’s ability to meet the bond obligations, Pramono guaranteed there would be no issues. “For DKI, it will definitely be paid off. I can guarantee there will be no problem,” he asserted.

In addition to the bond issuance, Pramono said the provincial government is also strengthening the performance of its regional-owned enterprises (BUMD). He cited PAM Jaya as an example, which now serves approximately 82 percent of Jakarta’s clean water needs and has recorded a profit of more than Rp 1 trillion thanks to professional management. “Bank DKI will also be more positive this year than last year. I am confident its profit could be three times that of last year,” he added.