15 June 2016
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PT Sarana Multi Infrastruktur (SMI) continues to provide financing to the infrastructure sector in various regions in Indonesia in order to encourage equitable development in various regions.
"Since 2016, we have been given a mandate by the Government to provide financing to various infrastructure projects in the regions. There are 94 regional governments with 116 facilities that have loans to SMI, around 20 of which have paid off their loans," said Erdian Dharmaputra, Head of Public Sector Financing 1 Division of PT SMI at a media visit to the Tribunnews editorial office, Friday, November 1, 2024.
The total financing commitment by SMI to the regions as of August 2024 reached IDR 38.98 trillion. Meanwhile, the total outstanding loans as of August 2024 reached IDR 23.91 trillion. All of these funds were distributed through the Regional Economic Recovery (PEN) scheme and regular regional loans.
Regarding the focus of financing on the infrastructure sector, Erdian explained that this refers to the regulation on regional loan management where regional loans are one of the instruments to close regional cash.
"We are selective in providing loans to regional governments. There are 552 regional governments in Indonesia, but we cannot provide loans to all of them. We only provide regional loans that meet the requirements such as aspects of financial management," explained Erdian.
He said that generally, the repayment of loans by regional governments to finance infrastructure development in their regions is quite smooth in the process of being returned to SMI.
He gave an example, the City of Solo once borrowed funds from SMI to build a type C hospital in Ngadipiro and became the first hospital owned by the Solo City Government.
"This hospital was built and has 125 beds for Solo residents who hold health cards and 5 beds for the general public. The loan value is IDR 46 billion, we disbursed it in 2012," said Erdian.
The loan had a term of 5 years but was successfully paid off in 3 years. "We have never imposed fines on regional governments that can repay loans from SMI on time," said Erdian.
He said that currently SMI is developing synergy between central and regional funding so that regions can maximize the use of Special Allocation Funds (DAK).
Three Magnificent Hospitals in 3 Provinces Funded by SMI Loans
He said that the 2021 PEN from SMI was channeled to the construction projects of 3 hospitals:
First, to the NTB Provincial Government to build the NTB Regional General Hospital with a loan value of IDR 500 billion, with details of IDR 357 billion to finance the construction of the hospital building and IDR 143 billion for the purchase of medical equipment (alkes).
Second, funding for the construction of the Bangli Regency Regional General Hospital in Bali Province worth IDR 75 billion for the cost of developing the hospital into a type B hospital.
Third, financing to the Konawe Regency Government, Southeast Sulawesi, as a regular regional loan worth IDR 231.9 billion to finance the physical construction of the hospital.
"The physical financing of this hospital is fully funded by PT SMI with a repayment tenor of 8 years," said Erdian.
Traditional Market Development Costs
PT SMI also finances the development of economic infrastructure in regions such as modern traditional markets.
Among others, Jelojok Market in Central Lombok, Bauntung Market in Banjarbaru, South Kalimantan, and Legi Market in Parakan, Temanggung, Central Java.
In addition, PT SMI also finances road construction projects that are the responsibility of the region.
Among others, for the construction of the North Morowali Road flyover worth IDR 135 billion, North Penajam Paser Road IDR 348.2 billion, and the construction of the Repapeip Bridge IDR 14.4 billion.
PT SMI's total regional loans as of August 2024 were IDR 38.98 trillion with a total outstanding loan of IDR 23.91 trillion. The total was absorbed by 94 regional governments with a total of 116 projects/facilities.
Prioritize the Aspect of Benefit
According to Erdian, the aspect of benefit is PT SMI's main consideration in providing loans to regions.
Even though the region has a good APBD and has received a fair predicate without exception by the BPK, if there is no urgency, why would the region borrow?
He emphasized that there are three parameters used by SMI to disburse loans to regional governments, namely, eligible, rating and borrowing capacity.
Erdian said that public sector financing after the SMI transformation is directed at regional governments, BUMN (especially PDAM), Public Service Agencies/BLUDs, especially activity-based regional loan houses, results-based regional loans, sharia-based regional loans, sustainability linked-loans to PDAM and loans to BLU.