Jakarta presses ahead with municipal bonds despite pushback
Jakarta Governor Pramono Anung presses ahead with his plan to issue municipal bonds to fund transportation and healthcare projects amid a slashed budget and despite pushback from a reluctant finance minister.
Jakarta Governor Pramono Anung is moving forward with plans to issue municipal bonds to finance transportation and healthcare projects, despite a reduced budget and opposition from the finance minister. The City Council is currently reviewing the proposal, but a formal endorsement from the Home Ministry, required by the 2024 Finance Ministry regulation, has not been granted yet.
Pramono's communications staffer, Cyril "Chico" Hakim, revealed that Jakarta plans to issue bonds valued between Rp 5.2 trillion (US$294 million) and Rp 5.6 trillion by 2027. The funds would be used for expanding the city's light rapid transit (LRT) network and constructing a new hospital.
The issuance would make Jakarta the first regional administration to utilize municipal bonds as a financial mechanism, following the central government's introduction of this system in 2019.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
