he Jakarta provincial administration has revealed plans to issue Rp 3.5 trillion (US$194.6 million) in Indonesia’s first municipal bonds to make up for the budget cuts imposed by the central government.
Jakarta Governor Pramono Anung said on Tuesday that the move came as a response to the “Rp 15 trillion cut” in regional transfer funds (TKD) from the central government, which brought “fiscal pressure” on the capital province.
“[For] Jakarta bonds, we’ll issue Rp 3.5 trillion, and I’m sure there will be a lot of buyers. Why? Because we’ll be selling with a smile,” Pramono was quoted as saying by Kontan.
Regional governments’ spending budgets rely heavily on transfers from the central government. Under President Prabowo Subianto, the government significantly reduced these transfers to reallocate funds toward priority programs, including the free nutritious meal program.
In Jakarta’s case, the transfer was cut from Rp 27.5 trillion last year to Rp 11 trillion this year. Not long after the budget plan was inked, Pramono met with Finance Minister Purbaya Yudhi Sadewa in October 2025 to ask for permission to issue the municipal bonds.
The original plan was to issue the bonds as a manifestation of the establishment of a regional investment entity called the Jakarta Collaboration Fund, one of Pramono’s flagships that he peddled on the campaign trail.
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