OJK, BPK to Monitor Municipal Bond Issuance

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  • TEMPO.CO, Jakarta - The Financial Services Authority (OJK) and the Supreme Audit Agency (BPK) will monitor the issuance of municipal bonds. "We will begin to examine OJK's role in the issuance of municipal bonds, including the role of auditors," OJK chief of Commissioners Board Muliaman D. Hadad said yesterday.

    Hadad said auditing of municipal bonds requires the role of independent auditors to examine revenue and expenditure budgets thoroughly.

    "We are still thinking of a way out related to the auditing process. This is still a new thing," he said.

    BPK chief Harry Azhar Azis said the issuance of municipal bonds must be tailored to the budget pattern in each area. "If long-term bonds are issued, it must be adapted to the regional budget," he said.

    The Indonesian government continues to push for bonds issuance as a way to fund infrastructure development, in hopes that the large amount of financing, which cannot be sourced from the government and private sector, can be obtained.