On March 12, 2018 afternoon, the Asian Infrastructure Investment Bank (AIIB) Delegation visited PT SMI’s office. On this visit, PT SMI provides exposure to AIIB related to local infrastructure financing.
Before visiting the office of PT SMI, AIIB Delegation met with President Joko Widodo at the Presidential Palace of Bogor, West Java in the morning.
During the meeting, President Joko Widodo was accompanied by Coordinating Minister for the Economy Darmin Nasution, Minister of Finance Sri Mulyani, Minister of Public Works and Public Housing Basuki Hadimuljono, and Cabinet Secretary Pramono Anung.
The agenda of the meeting with President Joko Widodo is to discuss the AIIB delegation’s plans to visit Yogyakarta and Solo in order to see first hand the AIIB-funded project.
AIIB is a new international financial institution initiated by the Chinese government since 2010 and officially operates in 2016. Unlike previous development banks, AIIB emerged as a new development bank for the Asia-focused region of infrastructure.
Currently, AIIB has members of more than 70 countries and Indonesia is one of the largest shareholders in the institution.
Indonesia has secured loans for three projects from AIIB. Indonesia’s first funded project is a national slum upgrading program at a cost of US $ 216 million or equivalent to Rp2.8 trillion. The second project is the development of regional infrastructure covering the provision of clean water and sanitation, flood management, waste management, and the arrangement of slum neighborhoods with a total cost of US $ 100 million. The third is Dam Operational Improvement and Safety Project (DOISP) with a fund of US $ 125 million.