JAKARTA, 18 October 2013 – PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) and PT Indonesia Infrastructure Finance (“PT IIF”) today, Friday 18 October 2013, signed an Agreement Granting Financing Facility with PT Energi Listrik Batam (“PT ELB”), a subsidiary of PT Medco Power Indonesia, for USD 48.000.000 to develop and construct Gas Power Plant (PLTG) in Tanjung Uncang, Batam, Riau Islands.
The project, in which the construction is estimated to finish in December 2014, will be able to generate electricity supply of 2X35 MW for the people and industry in Batam Island and the surrounding. PT SMI’s Director of Financing & Investment, Mister Nasrizal Nazir, said “With the continuously increasing electricity demand of an average of 9,3% per year and in line with the effort to increase electrification ratio in Indonesia that is targeted to increase 90.9% in 2019, the financing to develop Gas Power Plant is also more or less contributing to the additional electricity supply in Indonesia, especially in Batam island and the surrounding.”
The facility grant also shows support from PT SMI and PT IIF to PT ELB as the Project Sponsor in order to develop electrical power in Batam Island and the surrounding. PT IIF’s President Director, Mister Kartika Wirdjoatmodjo, said “We will support Project Sponsor that has good reputation as well as high commitment in developing infrastructure in Indonesia. This support is expected to give positive signal to the project sponsors to keep increasing their participation in developing infrastructure projects in Indonesia”.
The project’s financial close achievement is a form of real commitment from PT SMI and PT IIF in encouraging the acceleration of infrastructure development in Indonesia, as well as representing good synergy between PT SMI and PT IIF in increasing financing capacity for infrastructure projects in Indonesia.
PT Sarana Multi Infrastruktur (Persero)
PT Sarana Multi Infrastruktur (Persero) or in short “PT SMI” is a Infrastructure Financing Company established on 26 February 2009 and its 100% stock is owned by the Government of Indonesia under the Ministry of Finance.
As a catalyst in the acceleration of infrastructure development, PT SMI has three business pillars, which are Financing & Investment, Advisory and Project Development. The three business pillars of PT SMI are the total solution for the infrastructure development in Indonesia. Routinely, PT SMI keeps establishing partnership with various parties as an effort to maximize PT SMI’s role as the Government’s strategic partner in infrastructure development in Indonesia.
PT Indonesia Infrastructure Finance
PT Indonesia Infrastructure Finance (“PT IIF”) is a private national company in the form of Infrastructure Financing Company based on Ministry of Finance Regulation of the Republic of Indonesia No. 100/2009, which is managed professionally with focus to invest in commercially viable infrastructure projects. The establishment of PT IIF is one important element in the strategic development by the Government of Indonesia together with partner from international financial institution to overcome obstacles within the private investment flow in infrastructure sector.
As a commercially oriented business entity, PT IIF provides fund based products such as long-term loan; non fund based products such as guarantee as well as other services related to infrastructure projects. PT IIF is expected to develop into a national repository in raising experience and expertise related to developing and financing viable infrastructure projects, including projects based on Public-Private Partnerships (PPP).