Helping Accelerate Regional Economic Recovery, PT SMI Distributes PEN Loans to the Pohuwato and Tulang Bawang Barat Regency Government

Jakarta, August 19, 2021 – PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) approved the proposal for a Regional National Economic Recovery Loan (“PEN”) for the District Government (“Regional PEN”) Loans for Pohuwato Regency (“Pemkab”) worth IDR 152, 76 billion and the District Government of Tulang Bawang Barat worth Rp. 54.38 billion in order to realize the acceleration of economic recovery in each district. The signing of this regional PEN loan agreement was carried out in a circular manner through online media by the Director of Financing and Investment of PT SMI – Sylvi J. Gani, together with the Regent of Pohuwato – Saipul Mbuinga and the Regent of Tulang Bawang Barat – Umar Ahmad, on Friday (13/8). attended by the President Director of PT SMI – Edwin Syahruzad.

The proposed loan from the Regional Government of Pohuwato and Tulang Bawang Barat Regency to PT SMI is intended to meet the needs of regional infrastructure development as the Regional Revenue and Expenditure Budgets ("APBD") of each Regency must be reallocated due to the pandemic. The APBD reallocation is carried out in order to continue to support the development of priority sectors of the Regency Government, such as the handling and development of the road, bridge and drainage infrastructure sectors.

Previously, PT SMI together with the Directorate General of Fiscal Balance (“DJPK”) of the Ministry of Finance (“Kemenkeu”) and the Ministry of Home Affairs (“Kemendagri”) of the Republic of Indonesia had conducted a joint evaluation, and considered several risk factors for the proposals submitted by each each district government. The approved loan is then distributed to the Regency Government by PT SMI as the Ministry of Finance's Special Mission Vehicle (“SMV”) by applying the principles of transparency and accountability.

President Director of PT SMI, Edwin Syahruzad, in his speech stated, "The signing of this PEN loan agreement is a form of responsiveness and support from the Government, in this case the Ministry of Finance, for the impact of the Covid-19 pandemic which has greatly affected the regional economy. PT SMI as a Special Mission Vehicle (SMV) under the coordination of the Ministry of Finance, which plays a role in distributing the Regional PEN loan facility will continue to make its best efforts, and always monitor the distribution of PEN loan funds in order to achieve the expected goals optimally, so as to be able to provide high social and economic benefits for the community in Pohuwato Regency and Tulang Bawang Barat Regency”.

The Regent of Pohuwato, Saipul Mbuinga, expressed his gratitude to PT SMI. In his remarks he stated, “This support has become a trust for Pohuwato Regency in managing financing for priority activities that are closely related to regional economic recovery. With this regional PEN loan, we are optimistic that we can encourage economic growth in Pohuwato Regency by moving strategic sectors so that it will have an impact on national economic recovery”.

At the same time, the Regent of Tulang Bawang Barat, Umar Ahmad, also expressed his gratitude for the regional PEN loan provided by PT SMI. Previously in 2020, PT SMI also provided a PEN loan to the Tulang Bawang Barat Regency Government in the amount of Rp. 25.08 billion for financing needs for road and environmental infrastructure projects. “This is the second time PT SMI has trusted the Tulang Bawang Barat Regency Government in financing the PEN loan for the implementation of the Regency's priority programs. We thank you for your support, hopefully this support can provide the maximum benefit to the community, especially in accelerating the economic recovery in Tulang Bawang Barat Regency”.

The PEN program was launched as a stimulus to drive national economic growth. PT SMI hopes that, by always applying the principles of Good Corporate Governance, transparency, and accountability in its implementation, the support for this Regional PEN loan facility will be able to revive the wheels of the economy in Pohuwato Regency and Tulang Bawang Barat Regency.

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About PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) which was established on February 26, 2009 is a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB). PT SMI plays a role and has a mandate as a catalyst for accelerating national development.

PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as infrastructure financing but also as an enabler through the implementation of the Government and Business Entity Cooperation (PPP) scheme which includes various financial institutions, both private and multilateral. PT SMI actively supports the implementation of PPPs and encourages the acceleration of infrastructure development in the regions through regional loan products.

PT SMI has three business pillars, namely (1) Financing and Investment, namely financing for infrastructure projects, (2) Consulting Services, namely solutions to the needs of professionals and experts in infrastructure and (3) Project Development, namely helping the Persons in Charge of Cooperation Projects (PJPK) to prepare infrastructure projects.

Further information,

Ramona Harimurti
Head of Corporate Secretary

Dian Rufal
Head of Communications

PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258
Email: corporatesecretary@ptsmi.co.id
www.ptsmi.co.id