Regent Adi Arnawa Receives Courtesy Visit from Surabaya Mayor Eri Cahyadi

Mangupura, todaysSpill.com
Badung Regent I Wayan Adi Arnawa received an official visit from the Mayor of Surabaya, Eri Cahyadi, as part of a knowledge sharing program on fiscal policy and regional infrastructure acceleration strategies. The meeting took place at the Nayaka Gosana Room, Badung Government Center, on Friday (Dec 5). The Surabaya City Government aimed to obtain comprehensive information related to development financing schemes, particularly through regional loan mechanisms that have already been implemented earlier by Badung Regency.
Also attending the discussion were heads of related regional government offices of Badung Regency, as well as the Mayor of Surabaya and his delegation.
During the session, Regent Wayan Adi Arnawa explained the background behind adopting regional loans as an instrument to accelerate infrastructure development. The policy was taken to solve traffic congestion on several road segments that can no longer accommodate increasing vehicle volume. The loan is focused on road infrastructure development in Badung Regency, serving as a strategic project to enhance connectivity, reduce congestion, and improve mobility services for residents and tourists.
“The traffic congestion that has been widely complained about by residents and tourists encouraged me to take progressive measures through alternative financing schemes, in order to accelerate infrastructure solutions,” he said.
The Regent further emphasized that the regional loan policy was carried out based on Government Regulation No. 1 of 2024 concerning National Fiscal Harmonization. Under the regulation, there are two loan types—assigned and non-assigned (regular)—and Badung Regency has chosen the non-assigned mechanism after receiving formal approval from the Badung Regency Legislative Council (DPRD).
“As the implementation basis, we have also established a Technical Team for Regional Loan Implementation through an official decree to ensure control mechanisms comply with regulations,” said Adi Arnawa.
He added that, from a fiscal capacity perspective, Badung’s financial indicators fall within a healthy category, with a Debt Service Coverage Ratio (DSCR) of 6.57, far above the minimum threshold required by the Central Government. The ratio reflects the region’s capacity to sustainably fulfill loan principal, interest, and payment obligations.
“All procedures for loan submission and implementation are strictly supervised in coordination with the Bali High Prosecutor’s Office, along with the Probity Audit carried out by the Inspectorate of Badung Regency to ensure transparency, accountability, and integrity in the use of public funds,” he explained.
Meanwhile, Surabaya Mayor Eri Cahyadi stated that this visit is an important step for the Surabaya City Government in exploring alternative financing through SMI to accelerate development.
“We are here to learn from Badung Regency in accelerating development in Surabaya through alternative financing from SMI. From our discussion with SMI, we learned that Badung has completed all required processes and implementation is already underway. We want to ensure that all necessary documents are prepared, so that signing can be conducted in December and we can begin implementation in January,” he said.
Mayor Eri added that this acceleration is required because several strategic works are planned for 2026–2027, making document readiness and financing certainty crucial to ensure the development timeline proceeds according to target. TS-01