Jakarta. Indonesia's financial service regulator, OJK, said on Friday (29/12) it has revised regulations on municipal bonds to encourage provincial governments to issue them to finance their infrastructure projects.
"It is aimed at removing obstacles in issuing municipal bonds," Wimboh Santoso, head of OJK, told reporters.
The new rules relaxed some administrative requirements, while also clarifying procedures provincial governments need to follow to launch bond sales.
Central Java, West Java and East Java provinces are prepared to raise money through bonds sales to finance infrastructure developments, Wimboho said, adding that he hoped issuance would begin in 2018.
Domestic media have reported that West Java has delayed municipal bonds issuance for many years due to regulatory difficulties.
The revision is an "effort to support government priority program" in boosting infrastructure development, the OJK said.
President Joko "Jokowi" Widodo has been encouraging domestic companies to raise funds through new financial instruments.
In December, state-controlled toll road operator Jasa Marga issued Indonesia's first London-listed, rupiah-denominated global bonds. Three other state firms may follow suit.