Jakarta, Sept. 8 -- Finance Minister Purbaya Yudhi Sadewa urged regional governments on Tuesday to prepare risk mitigation measures if they plan to issue regional bonds.

Speaking at a press briefing in Jakarta, Purbaya said the experience of countries that allow regional governments to issue debt showed that financial problems at the local level could eventually affect the central government.

"If you look at the lessons from countries in Latin America, Brazil, I think regional governments or provinces were once allowed to issue debt, and they were considered separate from the central government," Purbaya said.

"But when problems arose, the central government was also held responsible. Once it became a problem, the country's economy was...