Indonesia urges caution over Jakarta’s planned bond issue
Suahasil Nazara pointed to rising central government bond yields and said state-budget support options remained under discussion.
Indonesia’s Finance Ministry has urged caution over the Jakarta provincial government’s plan to issue bonds, citing unfavourable global conditions and higher yields on central government debt.
Speaking to reporters in Jakarta on 30 October 2026 after attending Kadin Indonesia’s national leadership meeting, Suahasil Nazara said any issuance must comply with existing rules and take account of market conditions.
He stopped short of saying whether Jakarta could proceed. When pressed on whether the province was unable to issue bonds for now, he said the decision rested with the respective parties, subject to the rules and consideration of global conditions.
Suahasil said rising central government bond yields should be a consideration for anyone planning to sell debt.
He also said the central government was preparing several support options through the state budget, with discussions to continue. Communication with Jakarta’s provincial government had already begun, he added.
Some Jakarta projects already receive direct or indirect state-budget support through spending or financing, he said, citing MRT as a financing example. He said the central government continued such arrangements with local governments across Indonesia.
