“We are also being helped by the Asian Development Bank (ADB) to formulate this (JCF). The hope is that it already becomes a form of institution by the end of this year, so operations can begin in 2026,” advisor to the Jakarta Governor, Yustinus Prastowo, said here on Tuesday.
Prastowo informed that the JCF is expected to enable development projects that ensure spatial inclusivity, in line with the vision of Jakarta Governor Pramono Anung to promote inclusive economic growth in the city.
“Inclusivity means involving disadvantaged groups. The government will focus on how to redistribute resources, such as the regional budget (APBD), tax revenues, levies, and transfers to regions in order to create fair and equitable growth,” he said.
Jakarta will require an estimated Rp1,064 trillion or around US$65.4 billion to fund development programs between 2025 and 2029.
However, the APBD can cover only around Rp400 trillion of this funding.
Therefore, there is a need for innovative financing mechanisms to help realize Jakarta’s long-term goal of becoming one of the top 20 global cities by 2045.
Furthermore, the Jakarta Collaboration Fund is expected to serve as a regional development financing agency and an alternative funding source outside of the APBD.
The JCF is also expected to serve as a hub for public-private partnership (PPP) cooperation and oversee spatial utilization funds to optimize regional assets.
Through the JCF, the Jakarta provincial government will be able to prioritize and select priority development projects to promote equitable growth and ensure that no communities are left behind.
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Translator: Ade, Kenzu
Editor: Azis Kurmala
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