Jakarta’s plan to issue bonds for development projects is taking shape in a more expensive market. Finance Deputy Minister Suahasil Nazara cautioned that any debt issuance should account for rising yields and global financial conditions.

Investing.com data cited by Bisnis.com put the 10-year yield on central-government bonds at about 7.6% on Thursday, October 29, 2026, up from 7.4% on Tuesday, October 27. Suahasil said the increase in central-government bond yields should be considered by prospective issuers.

The report linked market pressure to geopolitical tensions and higher oil prices, which can fuel inflation and rate increases in advanced economies such as the United States and Japan. A risk-off shift can move capital from emerging markets to developed-market assets, requiring issuers to offer higher yields to attract investors.

Suahasil said rules for local-government bonds are in place, while market conditions remain relevant to the decision. He added that the central government has offered Jakarta funding options through the state budget; some city projects, including the MRT, already receive direct or indirect central-government support.

The proposed regional bond is intended to support projects including the Jakarta LRT route from Manggarai to Dukuh Atas. Suahasil’s comments set out cost and funding considerations; they do not say that Jakarta’s bond plan has been cancelled.