PT SMI and AFD Renew Strategic Partnership for Indonesia's Low Carbon Future

Jakarta, May 28, 2025 – PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) and Agence Française de Développement (“AFD”) continue their partnership to strengthen cooperation in promoting sustainable development, mitigating the impacts of climate change, and green financing in Indonesia. This collaboration is stated in a new Memorandum of Understanding (MoU), signed by the President Director of PT SMI, Reynaldi Hermansjah and CEO of AFD, Rémy Rioux, on Wednesday, May 28, 2025, at the Fairmont Hotel, Jakarta. The signing of the MoU was also witnessed directly by the Ambassador of the European Union to Indonesia and Brunei Darussalam, Denis Chaibi. The MoU that was signed is the third MoU signed between PT SMI and AFD. The purpose of this latest MoU is to further promote cooperation between the two institutions, going beyond the scope of the financing agreement. Some of the points of cooperation stated in the MoU are: (a.) Financing to support the transformation of national development; (b.) Knowledge sharing and capacity building in terms of: climate change, biodiversity, healthcare, and solid waste management; (c.) Publication and cooperation between the two parties that promote partnerships between the two countries.

The MoU with AFD represents the strategic bilateral relationship between Indonesia and France in supporting inclusive low-carbon development. PT SMI continues to play its role in carrying out active synergy and collaboration in supporting the achievement of SDGs through the SDG Indonesia One (SIO) platform. “PT SMI is very pleased to be able to continue its collaboration with AFD, because both institutions have the same vision and goals in efforts to provide clean energy. This agreement is important to strengthen the legitimacy and reputation of PT SMI as an important player in the climate sector. We have a variety of innovative platforms and tools to mobilize collaboration in financing environmentally friendly projects, such as SDG Indonesia One and ETM Country Platform. So that we can be the right partner for anyone who wants to contribute and provide benefits in overcoming the impacts of climate change,” said President Director of PT SMI, Reynaldi Hermansjah.

PT SMI and AFD have collaborated in financing infrastructure projects that contribute to climate change mitigation and adaptation since 2015, primarily through the provision of a USD 100 million loan. In 2018, a partnership agreement was signed and an additional new credit of USD 150 million was provided under the framework of PT SMI’s SIO. Several projects that have been developed as a result of the collaboration between PT SMI and AFD include the Pekanbaru Drinking Water Supply System in Pekanbaru, Riau, the Madong Mini-Hydro Power Plant in North Toraja, South Sulawesi, and the Ijen Geothermal Power Plant in Banyuwangi, East Java.

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About PT Sarana Multi Infrastruktur (Persero) (“PT SMI”)

PT Sarana Multi Infrastruktur (“Persero”) (“PT SMI”), established on February 26, 2009, is a State-Owned Enterprise under the coordination of the Ministry of Finance of the Republic of Indonesia, in the form of a Non-Bank Financial Institution (LKBB). PT SMI plays a role and has a mandate as an agent of sustainable development. PT SMI has 3 business pillars, namely Commercial Financing, Public Financing, and Project Development and Advisory Services.

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

For further information, please contact:

Ramona Harimurti
Head of Corporate Secretary Division
PT Sarana Multi Infrastruktur (Persero)
Tel : +6221 8082 5288
Fax : +6221 8082 5258
Email: corsec@ptsmi.co.id
www.ptsmi.co.id