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.
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)
The 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.
