BANDUNG - Limited Budget Expenditure has hampered regional development plans. Whereas efforts to get funds to build regions can come from the capital market, not just funding from the central government.
OJK Capital Market Supervisory Chief Executive Hoesen said that many local governments had consulted to issue regional bonds to get fresh funds to build a number of projects in their regions. However, he admitted, to this day, there is no Regional Government that has successfully issued regional bonds.
"We continue to do the socialization, some local governments such as West Java, Central Java and East Java, then Bali and DKI Jakarta are also interested in issuing regional bonds, until now there is no one yet," he explained at Dago Street, Bandung, on Thursday (20 / 6).
For West Java, according to him, the bond plan has been started since Governor Ahmad Heryawan to finance a large project. However, because the project became a national project and was managed by district consultants, the plan was finally canceled.
"Even the principle permit and permission from the West Java Parliament have been obtained, but canceled because the project belongs to the center.
He said that regional bonds can be made for a number of projects that can provide benefits, because of course there must be income to pay interest for people who buy bonds.
"West Java is very potential. For example, to build a tourist area can use bond funds, or build paid roads or trains," he explained.
There is a lot to be prepared. For example, there must be someone who will take care of payment of bond coupons, monitor the construction of projects financed by bonds and others. "So the local government structure must also be addressed first, then the business prospects must also be clear so as to attract bond buyers," he explained. Jo