Jakarta. The Jakarta provincial government plans to issue municipal bonds worth a combined Rp 5.6 trillion ($312.9 million) over the next two years to help finance infrastructure development and improve public services, Deputy Governor Rano Karno said Tuesday.

The proposed bond issuance, which requires approval from the Jakarta Legislative Council (DPRD), would be carried out in two stages, with Rp 4.2 trillion scheduled for 2027 and another Rp 1.4 trillion in 2028.

"This brings the total planned regional bond issuance to Rp 5.6 trillion," Rano told a plenary session of the Jakarta Legislative Council.

He said municipal bonds would provide an alternative financing source for the provincial government, allowing it to accelerate infrastructure projects and improve the quality of public services.

The planned issuance forms part of Jakarta's broader fiscal strategy as the city seeks additional funding sources to support development.

Jakarta Proposes Rp 82.89 Trillion Budget for 2027
During the same legislative session, Rano presented Jakarta's proposed 2027 regional budget of Rp 82.89 trillion ($4.6 billion), representing a 4.18% increase from the current year's budget.

The provincial government projects revenue of Rp 72.62 trillion next year, up 4.70% from the Rp 69.36 trillion estimated for 2026.

Rano said the revenue would come primarily from locally generated income, supplemented by transfers from the central government and other legally recognized sources.

"Regional revenue is expected to come from Rp 58.58 trillion in locally generated revenue, Rp 11.6 trillion in transfers from the central government, and Rp 2.88 trillion in other legitimate revenue," he said.

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