Regional bond issuance aims to strengthen regional fiscal capacity after IDR 15 trillion budget cut.
JAKARTA – Jakarta Governor Pramono Anung said the administration will issue its first regional bonds worth IDR 3.5 trillion in 2026.
The debt instrument is expected to become the first regional bond issued in Indonesia.
Pramono made the statement while presenting a fiscal independence strategy towards Jakarta Global at Indonesia Stock Exchange (IDX) building on Tuesday (30/6).
According to Pramono, the bond issuance is an effort to maintain Jakarta’s fiscal capacity after the Regional Revenue and Expenditure Budget (APBD) was cut by around IDR 15 trillion for 2026.
“With the IDR 15 trillion cut, there is certainly pressure on Jakarta’s fiscal position,” Pramono said.
He said he was optimistic that the regional bond issuance would receive a positive response from investors.
“We will issue Jakarta bonds worth IDR 3.5 trillion and I am confident there will be a lot of interest,” Pramono added.
Nevertheless, Pramono has not provided further details regarding the plan, including the tenor and coupon offered, as well as the parties appointed as underwriters for the regional bond issuance.
For information, the Jakarta Provincial Government’s Regional Budget (APBD) is planned at IDR 81.3 trillion for 2026. This amount is IDR 10 trillion lower than the previous year. (KR/ZH)
as a preferred source on Google