SMI Disburses IDR 37 Trillion for Local Government Loans and PEN

President Director of PT Sarana Multi Infrastruktur (Persero) or SMI Edwin Syahruzad confirmed that he had a commitment to disburse loans of IDR 37 trillion to local governments (Pemda).

The loan will flow to the regional government in the amount of Rp. 6.65 trillion and the regional National Economic Recovery (PEN) program loan of Rp. 30.43 trillion.

"Regular financing has reached IDR 6.65 trillion for 29 local governments and there is also a financing commitment in the context of regional PEN loans, which is IDR 30.43 trillion," added Edwin, in the Indonesia Sustainable Development Day 2021 webinar, Wednesday (10/11).

Regular loans from SMI have been given to local governments since 2015 to accelerate the development of infrastructure and public services in the regions.

Meanwhile, regional PEN loans are ad hoc facilities to support regions in order to recover the economy due to the COVID-19 pandemic.

SMI has disbursed regional PEN loans specifically since last year and this year.

Currently, SMI has also provided facilities for the preparation of 23 projects in 21 regions. This is done in order to overcome the problem of lack of budget and increase the capacity of local governments in preparing infrastructure.

However, Edwin explained that SMI cannot help finance all types of infrastructure. There are only a few sectors that can be given an injection of funds, including roads, bridges, hospitals, markets, transportation, water resources, telecommunications, oil and gas and downstream, to waste management.

Then there is also the irrigation sector, new and renewable energy and energy conservation, regional infrastructure, correctional facilities, tourism, education, informatics, sports, arts, and public housing which can be assisted by funding by PT SMI.

In detail, the regional government in Sumatra receives the largest portion of financing compared to other islands, which is 36 percent. Meanwhile, in terms of sectors, roads and bridges are infrastructure that are widely requested for financing.

For information, SMI is a state-owned company that focuses on infrastructure financing in the regions. This company was formed based on the Regulation of the Minister of Finance Number 100/PMK.010/2009 concerning Infrastructure Financing Companies.

Source: cnnindonesia.com