Bali Governor I Wayan Koster and Badung Regent I Wayan Adi Arnawa met with Jakarta Governor Pramono Anung to discuss alternative financing options for development, including municipal bonds.
Governor Koster explained that the meeting at Jakarta City Hall was a follow‑up to guidance from the Minister of Home Affairs.
“We are grateful to have this audience with Governor Pramono. Following the Minister’s direction, we came to Jakarta to study creative financing, including the issuance of municipal bonds,” Governor Koster said on Tuesday, August 4, 2026 in Jakarta City Hall.
He added that the discussion provided valuable insights into Jakarta’s urban development strategies, especially in spatial planning.
“We learned about Jakarta’s initiatives and some strategic steps which could be applied in Bali — particularly in managing airspace, building heights, and partnerships with the private sector to accelerate infrastructure development for tourism,” Koster noted.
Out‑of‑the‑Box Financing
Governor Pramono emphasized that beyond municipal bonds, the talks also covered other financing instruments such as Floor Area Ratio, land release approval, and additional creative funding tools.
“In today’s economic conditions, boosting regional budgets can’t rely on conventional methods. We need breakthroughs and out‑of‑the‑box approaches,” Pramono said.
He explained that Jakarta plans to issue municipal bonds in 2027, and the experience will be shared with Bali as needed.
“In preparing for bond issuance, Jakarta can share lessons with Bali — from policy frameworks and coordination with ministries to meeting regulatory requirements,” Pramono added.
He highlighted the potential of municipal bonds as a financing solution, particularly for tackling traffic congestion.
Pramono also noted that Badung Regency, with a regional budget of around Rp13 trillion, has the capacity to issue bonds similar to Jakarta.
“We discussed this because Badung clearly has the potential to issue municipal bonds, just like Jakarta,” Pramono explained.