Indonesia's capital city Jakarta will issue a municipal bond worth 3.5 trillion rupiah ($195.80 million) this year, its governor Pramono Anung said on Tuesday.
The issuance would be the first municipal bond of its kind to be offered in Indonesia, the largest economy in Southeast Asia.
Pramono said the planned issuance is one way for Indonesia province to plug its budget gap following cuts in funding from the central government.
Proceeds from the bond would be used to finance new hospitals, schools, vertical housing, transportation, flood management and government building projects, Pramono said.
In 2026, the cash transfer from the central government to Jakarta province stood at 11.15 trillion rupiah, down 16 trillion rupiah or around 60% compared to the the previous year.
Another way for Jakarta to raise financing is to take its regionally owned enterprises public through initial public offerings, the Jakarta government said in its video statement.
($1 = 17,875 rupiah)