The interest of the regional government to issue municipal bond rising after government release the supported policies to them, said the official last week. Four regional governments, Jakarta, Aceh, West and Central Java are also interested in issuing municipal bonds.
Chief executive at the Financial Service Agency (FSA), Hoesen, said that West Java, Aceh and Jakarta were preparing for the issuances. While, Central Java is currently discussing the municipal bond with the regional parliament.
He revealed, before run the program, the regional government must form special units that deals with the issuance and manage the debt. Then, they has a duty to have adequate human resources to manage infrastructure project funding from the issuance of regional bonds.
Beside, the four governors, South Kalimantan also considered to release the municipal bond. According to the deputy governor, Rudy Resnawan, the municipal bond can be an alternative funding, as the regional budget is limited while the funding needs is big enough.
