PT SMI Socializes Regional Loan System to Elected Regional Heads

Jakarta, February 19, 2025 – PT Sarana Multi Infrastruktur (“Persero”) (“PT SMI”) continues to demonstrate its commitment to becoming a strategic partner for the Regional Government in developing their respective regions. In order to increase understanding of the importance of development planning and regional loan systems, PT SMI held direct socialization to the Elected Regional Heads. The activity was held in a Technical Guidance event held at the Borobudur Hotel, Jakarta, on Wednesday, February 19, 2025. The event was attended by the President Director of PT SMI, Reynaldi Hermansjah, Director of Public Financing and Project Development of PT SMI, Faaris Pranawa, Director of Risk Management of PT SMI, Pradana Murti, and a number of Heads of Divisions of PT SMI.

The President Director of PT SMI, Reynaldi Hermansjah in his speech hoped that this event could strengthen the collaborative spirit between PT SMI and the Regional Government. "We from PT SMI are very open to being part of the solution to answer development challenges in the regions, so that regions can be free from dependence on the APBN and APBD while continuing to drive the economy through the provision of public facilities. By accessing our regional loan facilities, the Regional Government not only gets a competitive source of funding, but also support from a professional team that is ready to help manage project finances effectively. This is a strategic step to accelerate the development of key infrastructure needed by the community, while maintaining the balance of regional finances," said Reynaldi.

In this activity, the Director of Public Financing and Project Development of PT SMI, Faaris Pranawa, also explained that regional financing can be used to improve the quality of public services such as education, health, and transportation. Quality education will produce a smart and competitive generation, while good health services will ensure that the community remains healthy and productive. With good infrastructure and public services, regional competitiveness will also increase. This will attract investment and create new jobs, which will ultimately improve community welfare. This event also presented a number of success stories from Regional Governments that have felt the benefits after developing their regions with the support of PT SMI financing.

The Technical Guidance of PT SMI's Regional Loan System is also expected to increase the capacity of local governments in managing regional finances and provide an understanding of the sources of financing that can be utilized. With regional financing, local governments can have alternative sources of financing so that they do not depend on central transfer funds. This will provide flexibility and independence for local governments and improve the quality of planning and implementation of development programs that are in accordance with the needs and potential of each region. Since 2016, PT SMI has provided financing support for local governments. Until 2024, PT SMI has distributed regional loans worth IDR 36.66 trillion in the form of commitments, and outstanding of IDR 21.19 trillion. During the COVID-19 pandemic in 2020 and 2021, PT SMI also assisted the government in carrying out its countercyclical role by distributing National Economic Recovery (PEN) loans to local governments and BUMN. The PEN loans that were distributed made a positive contribution by holding back economic contraction, encouraging national economic growth, increasing household income, and creating jobs.

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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