Jakarta Eyes Rp3.5 Trillion Bond Issuance in June 2027

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TEMPO.CO, Jakarta - The Jakarta Provincial Government aims to issue regional bonds worth Rp3.5 trillion in June 2027. The financing instrument is projected to be an alternative funding mechanism to accelerate infrastructure development and elevate public service quality.

"The plan to issue regional bonds has been proposed under the 2027 KUA-PPAS (Regional Budget General Policies and Provisional Budget Priorities and Ceiling). These bonds will be one of the alternative financing tools for regional development to support various public service projects," Jakarta Governor Pramono Anung said in a written statement on Tuesday, July 21, 2026.

Pramono explained that proposing the bond issuance in the 2027 Regional Budget (APBD) General Policies and priority ceiling is part of a strategy to bolster regional development financing.

The regional bonds are planned with a maximum maturity of seven years. The coupon rate will be set according to financial market conditions and dynamics at the time of issuance to ensure the financing remains efficient and competitive. Proceeds from the bond issuance will be directed toward developing LRT Phase 1C Manggarai-Dukuh Atas, regional public hospitals (RSUD), new schools, flood control reservoirs and polders, and public housing facilities.

Pramono noted that preparations for the bond issuance are being refined through close coordination with the central government. The Jakarta Provincial Government submitted a formal request for support on June 12, 2026, which was subsequently backed by a letter of support from the Coordinating Ministry for Economic Affairs on July 10, 2026. The preparation process has also received assistance from several other ministries and government agencies.

As part of the preparatory phase, the Jakarta Provincial Government conducted capacity-building activities on creative financing on July 20–21, 2026. The event was supported by the Jakarta Legislative Council (DPRD), the Ministry of Home Affairs, the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Financial Services Authority (OJK), the World Bank, the UNDP, and various development partners to enhance stakeholder readiness ahead of the bond issuance.

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