Widen Steps for Equitable Development PT SMI Launches SMI Institute

Grand Launching of SMI Institute – PT Sarana Multi Infrastruktur (Persero)

Jakarta, 15 March 2023 - PT Sarana Multi Infrastruktur (Persero) ("PT SMI") launched the SMI Institute which was established with the aim of providing solutions for development in the region on a research basis. The SMI Institute is present and will be a solution to address regional economic challenges through research & fellowship activities, capacity building & training, as well as knowledge sharing aimed at all local governments in Indonesia. It is hoped that the presence of the SMI Institute will increase the capacity of local governments in providing the necessary access according to the different characteristics or uniqueness of each region. The Minister of Finance of the Republic of Indonesia and all staff, national and international research institutes, multilateral development banks, and Special Mission Vehicles within the Ministry of Finance of the Republic of Indonesia attended. The launch of the SMI Institute is a concrete manifestation of PT SMI's commitment to implementing its mission as a catalyst for national development through regional economic development. The Minister of Finance accompanied by the President Director of PT SMI Edwin Syahruzad carried out the procession for launching the SMI Institute on Wednesday (15/03), in the Hall of the Office of the Ministry of Finance of the Republic of Indonesia, Jakarta.

Regional economic development still faces challenges, namely the large gaps between regions, one of which is caused by inadequate access to infrastructure. The Ministry of Finance is currently preparing PT SMI to transform into a National Development Financing Institution that will focus on responding to regional economic development challenges that require equal distribution of access between regions to infrastructure according to their characteristics. As stated by Edwin Syahruzad as the President Director of PT SMI, as a form of corporate agility where regional development cannot wait, PT SMI provides solutions for local governments through the SMI Institute which will provide various research-based outputs for each local government that has different characteristics. SMI Institute will provide added value to regional financing products that have been provided by PT SMI since 2015 so that the financing will be increasingly focused on unique regional needs.

The Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati welcomed the idea formed by PT SMI through the establishment of the SMI Institute. This is because according to Sri Mulyani, the regional development challenge which is access to infrastructure cannot be carried out by the APBN alone and requires the active involvement of other parties. “Increasing the capacity of local governments in increasing access to infrastructure needs to be done. PT SMI has and continues to prove its actions in translating problems into solutions and to continue to connect, which was proven tonight through the establishment of the SMI Institute. This is a good evolution.” he said.

Edwin added "The pandemic has resulted in the diversity of regions being affected and at that time PT SMI was present as a countercyclical tool for the Government in overcoming the economic situation of affected regions through the Regional National Economic Recovery ("PEN") financing program which was carried out in a transparent and accountable manner through process digitalization and monitoring. With the existence of the SMI Institute, financing to local governments will be more reliable with a focus on the diversity of existing regions."

The Head of the SMI Institute, I Kadek Dian Sutrisna Artha, in his presentation on the SMI Institute, said that the SMI Institute would not move alone to develop regional potential. Collaboration is very important with various parties, both national and international research institutes to improve the quality of research in supporting the strengthening of PT SMI's regional financing and increasing the capacity of local governments. We are open and provide opportunities for national and international partners to deepen efforts to advance Indonesia.

The launch of the SMI Institute was also attended by various partners who have established collaborative development including the Faculty of Economics and Business, University of Indonesia, Faculty of Economics and Business, Gadjah Mada University, Education Fund Management Institute (LPDP), PROSPERA, National Team for the Acceleration of Poverty Reduction (TNP2K), Australia National University, and the Center for Strategic and International Studies (CSIS). According to Sri Mulyani, this collaboration with various research institutions will encourage various other parties to participate in identifying areas that are impactful for regional economic development, so that the SMI Institute can become an institution that Indonesia can rely on. “Continue to be an institution that can provide a place to be creative, think, and act. Embrace as many parties as possible to oversee Indonesia's journey to becoming a high-income country," concluded Sri Mulyani.

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About PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) was established on February 26th, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB), with a role and mandate as a catalyst for the acceleration of national development.

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

PT SMI has three business pillars, namely (1) Funding and Investment, financing for infrastructure projects, (2) Consultancy Services, solutions to the needs of professionals and experts in the infrastructure sector, and (3) Project Development, assistance for the Person in Charge of Cooperation Projects (PJPK) in preparing infrastructure projects.

For further information please contact:

Ramona Harimurti
Head of Corporate Secretary

Dian Rufal
Head of Communications Unit

PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258
Email: corporatesecretary@ptsmi.co.id
www.ptsmi.co.id