Regional Bonds Considered a Suitable Alternative Financing Source in Riau
Riau Province is one of the regions with the largest investment in Indonesia, according to Karmila Sari, a member of the House of Representatives (DPR RI) from the Golkar Party faction representing the Riau I electoral district. She made the statement at the People’s Consultative Assembly (MPR RI) National Gathering in Pekanbaru, Riau, on Monday (20/7/2026).
The MPR RI National Gathering in Pekanbaru served as a forum to discuss regional bonds as an alternative financing source. Riau is the eighth region to host this forum, which explores funding sources outside the Regional Budget (APBD) to support infrastructure development, improve public services, and develop the economic sector.
The forum was held in Pekanbaru after gathering aspirations from several regions in a series of previous gatherings. Through the forum, speakers representing the legislature, government, state-owned enterprises (BUMN), the private sector, and academics discussed various perspectives on regional bonds, ranging from policy aspects to development financing.
"Riau was our choice; this is the eighth province. This was our consideration because, in terms of investment, it is very large, even exceeding the national level of investors coming to Riau," said Karmila.
According to her, regional bonds could be an alternative for regions in developing strategic projects such as hospitals and port projects, particularly in supporting development and advancing the region.
"We see that there are many strategic projects, and with the strategic conditions in Riau, this is an alternative financing source. Not only in Riau, but there are also several other regions where we understand that, given the conditions of the Regional Transfer Fund (TKD), this is an alternative financing source," Karmila stated.
After receiving feedback from stakeholders in Riau, similar forums will be held in other regions. Once aspirations from ten regions have been collected, an academic paper will be submitted to the DPR so that it can be passed into a Regional Bond Law.
"So, after we see this positive response and have collected input from ten regions, we will propose the creation of a Regional Bond Law. God willing, this is our good intention from the Golkar Party faction, especially in the field of development," she said.
Meanwhile, the Chairman of the MPR RI Budgeting Body, Melchias Markus Mekeng, stated that regional bonds are similar to government bonds, except they are issued by regional administrations.
"These regional bonds are actually similar to government bonds. The difference is that one is issued by the state, and the other is issued by the region. Government bonds amount to Rp 7,000 trillion. If regional bonds were issued for Rp 1,000 trillion, we can imagine that Rp 1,000 trillion entering the regions would accelerate development," he concluded.