Jakarta Eyes Rp3.5 Trillion Bond Issuance for Infrastructure in 2027

Jakarta's provincial government intends to issue regional bonds totaling Rp3.5 trillion in June 2027 as a key strategy to fund infrastructure development and enhance public services. The plan is part of the 2027 Regional Budget General Policies and Provisional Budget Priorities and Ceiling.

Governor Pramono Anung stated that these bonds represent an alternative financing tool to support various public service projects. The bonds will have a maximum maturity of seven years, with the coupon rate determined by market conditions at the time of issuance to ensure efficiency and competitiveness. The raised capital is earmarked for crucial projects such as the LRT Phase 1C (Manggarai-Dukuh Atas), regional public hospitals, new schools, flood control reservoirs, and public housing facilities.

Preparations for the bond issuance are underway, involving close coordination with the central government. The provincial government submitted a formal request for support on June 12, 2026, receiving a letter of support from the Coordinating Ministry for Economic Affairs on July 10, 2026. Assistance has also been sought from other ministries and government agencies.

To ensure readiness, the Jakarta Provincial Government conducted capacity-building activities on creative financing from July 20–21, 2026. This event saw participation from the Jakarta Legislative Council, 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.

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The plan to issue regional bonds has been proposed under the 2027 KUA-PPAS. These bonds will be one of the alternative financing tools for regional development to support various public service projects.