TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsJakarta to issue Rp 3.5t in municipal bonds
Jakarta Governor Pramono Anung said 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.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Jakarta Governor Pramono Anung speaks during an exclusive interview with The Jakarta Post editorial team on Jakarta’s development at the TPUT transit room at Jakarta City Hall on Jan. 20, 2026. (JP/Iqro Rinaldi)
T
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.
Read also: Jakarta to issue Indonesia’s first municipal bonds next year
