Tito Karnavian Urges DKI Jakarta Not to Pass Municipal Bond Debt to Successor

Jakarta's provincial government plans to issue a Rp3.5 trillion municipal bond in June 2027 with a minimum seven‑year tenor to finance infrastructure projects. Home Affairs Minister Tito Karnavian warned that the issuance must be examined to ensure the regional budget can service the debt and that it does not become a burden for the next governor. He said the bond is effectively borrowing and should only proceed if the APBD can repay it during the current administration.

Finance Minister Purbaya Yudhi Sadewa confirmed he has not received direct information from Governor Pramono Anung about the plan and expressed surprise given Jakarta’s sizable unspent budget. He will meet with the governor to discuss the proposal, stressing that any issuance must be credible and financially sound before moving forward.