Purbaya Responds to Jakarta Provincial Government's Bond Issuance Plan
Finance Minister Purbaya Yudhi Sadewa has stated that he is not yet aware of the DKI Jakarta provincial government’s plan to issue municipal bonds. The DKI regional government is targeting the issuance of the debt instruments worth Rp 3.5 trillion in June 2027.
The treasurer of the state assessed that DKI Jakarta’s regional coffers remain very large. “I don’t yet know (about the issuance plan). What is it issuing bonds for? They have plenty of money,” said Purbaya after a debottlenecking meeting at the Ministry of Finance office in Jakarta on Thursday, 23 July 2026.
To date, there have been no specific discussions between the regional government and the Finance Ministry regarding the issuance of the financing instrument. However, Purbaya said financing through municipal bonds is feasible and legally valid, provided the regional budget posture of the area concerned is in healthy condition.
“If it’s credible like DKI, which has a lot of money, it’s really not dangerous. The only question is that much of their money is unused, so why issue bonds? But I don’t know. I’ll check with them later,” he said.
Previously, the DKI Jakarta provincial government targeted the issuance of municipal bonds worth Rp 3.5 trillion in June next year, coinciding with the five-century anniversary of the city of Jakarta. The plan was proposed in the General Policy of the Regional Budget and Temporary Budget Ceiling Priorities (KUA-PPAS) for the 2027 fiscal year.
The municipal bonds are planned to have a maximum tenor of seven years. “These bonds will become one of the alternative financing options for regional development to support various public service projects,” said DKI Jakarta Governor Pramono Anung on Tuesday, 21 July 2026, as quoted from a DKI provincial government press release.
Pramono stated that the coupon or yield value will be determined by considering the conditions and dynamics of the financial market at the time of issuance, so that the financing remains efficient and competitive. The proceeds from the debt issuance will be focused on the construction of the Manggarai–Dukuh Atas LRT Phase 1C, regional general hospitals (RSUD), new school units, retention basins and polders for flood control, as well as high-rise public housing.
The provisions for issuing municipal bonds are regulated under Minister of Finance Regulation (PMK) No. 87 of 2024 concerning the Procedures for the Issuance and Repurchase of Municipal Bonds and Regional Sukuk by Regional Governments. Under the regulation, issuance may proceed with the approval of the Finance Minister after receiving consideration from the Minister of Home Affairs.