Bloomberg > The challenge so far is regulatory, considering the Finance Ministry has yet to issue a letter approving both the municipal bonds and the wealth fund, he added.
Finance Minister Purbaya Yudhi Sadewa verbally approved Jakarta’s plan to issue municipal notes and create a wealth fund for the city after meeting Pramono in October.
“The issue is because, doing this for the first time, everybody doesn’t want to take on the risk of the policy. That’s the problem. But I have told them, the risk is not yours, it’s on Jakarta,” Pramono said. “Sometimes, we just need to be patient.”
Bloomberg > Jakarta aims to issue Indonesia’s first municipal bond within a year as part of efforts to diversify city revenue sources following budget cuts.
The administration is in talks with the Asian Development Bank and World Bank to prepare the securities, which could be used to finance a variety of infrastructure projects in the pipeline, Jakarta Governor Pramono Anung Wibowo said in an interview with Bloomberg News on Friday. He declined to specify a funding target.