Witnessed by the Minister of Finance, PT SMI Signs 3 Multisector Financing Facilities Worth IDR 735.7 billion

JAKARTA, Indonesia, March 13, 2025 /PRNewswire/ -- PT Sarana Multi Infrastruktur (Persero) (PT SMI) is taking concrete steps to transform into a Development Finance Institution (DFI) to play a more active role in supporting national development. As a DFI that focuses more on creating a greater socio-economic impact on society, PT SMI signed 3 financing facilities in the education and health sectors, as well as in the provision of drinking water. PT SMI signed financing facilities totaling Rp 735.7 billion with Gadjah Mada University (UGM), the Regional Public Company (Perumda) Tirta Pakuan Bogor City, and the Surya Sembada Drinking Water Public Company (Perumda) Surabaya City on Wednesday, March 12, 2025, at PT SMI office, Sahid Sudirman Center Building, Jakarta. The signing ceremony was attended by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, along with officials from the Ministry of Finance, the Mayor of Bogor, Dedie Rachim, the Secretary of Surabaya City, Ikhsan, the Rector of UGM, Prof. dr. Ova Emilia, M.Med.Ed., Sp.OG(K)., Ph.D, the President Director of Perumda Tirta Pakuan Bogor City, Rino Indira Gusniawan, the President Director of Perumda Air Minum Surya Sembada Surabaya City, Arief Wisnu Cahyono, and the President Director of PT SMI, Reynaldi Hermansjah, along with PT SMI officials.

The first agreement is the Provision of Sharia Investment Financing Facility between PT SMI and UGM for the development of the Academic Hospital (RSA) owned by the University. This is a new breakthrough for PT SMI, as it is the first financing for a State University with Legal Entity Status (PTNBH) in Indonesia. PT SMI will provide a loan of IDR 405.3 billion to build a new RSA UGM building, as well as to supply the latest medical equipment. The Rector of UGM, Prof. dr. Ova Emilia, M.Med.Ed., Sp.OG(K)., Ph.D., also expressed gratitude for the support from PT SMI to strengthen UGM's position as a reference for research facilities and health profession education in Indonesia. RSA UGM will be upgraded to a Type A Hospital, along with an increase in capacity to 650 beds, services for 40,378 inpatients, and 271,496 outpatients.

In addition to financing facilities in the education and health sectors simultaneously, PT SMI also signed financing facilities with 2 regional drinking water management companies. The first is a financing cooperation plan with Perumda Air Minum Surya Sembada Surabaya City worth Rp 160 billion, which will be used for the rehabilitation of the pipe network in 2025 and 2026. This year, the main and secondary pipe networks, approximately 25 kilometers long, will be replaced because they are 20 to 100 years old. This will reduce Non-Revenue Water (NRW) caused by old pipes. The Secretary of the Surabaya City, Ikhsan, hopes that the rehabilitation of the pipe network will improve the reliability of water distribution in the service areas of Surabaya City, so that the quality of water reaching the community can be even better.

PT SMI also signed a cooperation agreement with Perumda Tirta Pakuan Bogor City worth Rp 170.4 billion, allocated for two drinking water supply system (SPAM) development projects, namely SPAM Cikereteg and SPAM Bogor Barat / Ciwaringin in Bogor City. The Mayor of Bogor, Dedie Rachim, mentioned that there will be an additional total of 40 thousand household connections from the construction of the two SPAM projects. The loan from PT SMI will also increase the capacity and distribution of clean water in the Cikereteg area by 200 liters per second and in Bogor Barat by 300 liters per second.

Through these 3 signings, PT SMI demonstrates its commitment to driving growth in various sectors through impactful development. "As part of the transformation process into a DFI, PT SMI wants to continue creating as many and as wide-ranging benefits as possible for the community. With UGM, we can help improve the quality of education as well as health, which will produce a smart and competitive generation, in line with the improvement of access to health services for the community. Similarly, the financing collaboration with Perumda Tirta Pakuan and Perumda Air Minum Surya Sembada provides the communities of Bogor City and Surabaya City with adequate access to drinking water. In the future, we will be more active in mapping various community needs, so that services in various sectors can be more effective and efficient," said the President Director of PT SMI, Reynaldi Hermansjah.

In this event, a regional debt financing application was also launched, the result of coordination between three ministries: the Ministry of Finance, the Ministry of Home Affairs, and the Ministry of National Development Planning / National Development Planning Agency. This application makes it easier for Regional Governments to access Regional Debt Financing and process the considerations of three Ministers. Through this application, local governments can use features to upload required documents, record Service Level Agreements (SLA), notifications and communication tools, and automatic approval if the SLA exceeds 15 days.

The Minister of Finance, Sri Mulyani appreciated PT SMI's initiative in supporting multisectoral infrastructure development. "Today, we are here to witness two important cooperation agreements, namely between PT SMI and PTNBH UGM and PT SMI and PDAM. This is a breakthrough with PTNBH, so we hope it can open up opportunities for cooperation with other PTNBHs, to strengthen the education and health sectors. For the two PDAMs, we know the Government is also focused on promoting the availability of safe drinking water, so this is certainly aligned and must be continuously encouraged and improved," said the Minister of Finance.

Sri Mulyani also gave special messages and directions to PT SMI. "PT SMI is already quite mature as an institution, but it is still in the growth phase to continue enhancing its contribution to national development. Resilience is also a key factor in facing existing challenges, and PT SMI must continue to adapt and innovate to achieve its long-term vision. PT SMI must also dare to take risks, because by doing so, the effort to build Indonesia can continue, but everything must remain within the corridor of Good Corporate Governance," added Sri Mulyani.

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 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 Consulting and Project Development Services.

PT SMI has various functions and unique products/features to support the acceleration of infrastructure development that not only serves as infrastructure financing but also as an enabler through the implementation of the Government and Business Entity Cooperation (KPBU) scheme, which involves 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.

SOURCE PT Sarana Multi Infrastruktur (Persero)