Jakarta to Expand Bond Issuance to Rp 5.2 Trillion for LRT Extension and Hospital Development

The Jakarta Provincial Government (DKI Jakarta) has announced plans to increase its bond issuance to a total of Rp 5.2 trillion to fund the extension of the Light Rail Transit (LRT) and hospital development. This marks a significant step towards accelerating infrastructure investment in the province. DKI Jakarta Governor Pramono Anung explained that the initial bond issuance plan of Rp 3.5 trillion has been revised to Rp 5.2 trillion due to the additional approximately Rp 1.7 trillion required for the LRT extension from Manggarai to Dukuh Atas. He noted that the DKI Jakarta provincial government has the capacity to issue bonds up to around Rp 20 trillion, but has opted for a more conservative approach this time, focusing on infrastructure investment. Governor Pramono believes that investing in public transportation infrastructure like the LRT allows for more prudent management as the funds are allocated to effective projects with clear purposes. In addition to LRT development, the funds raised from the bond issuance are also earmarked for hospital construction. The governor expressed his hope that the issuance of provincial bonds, which would be the first in Indonesia and coincide with Jakarta's 500th anniversary next June, will serve as a positive signal for Jakarta's financial health. Furthermore, the plan has garnered support from the World Bank, with positive feedback received during a meeting with the bank's Vice President. Governor Pramono is confident that this bond issuance will contribute to the improvement of Jakarta's financial condition. Source: Liputan6