President Director of PT Sarana Multi Infrastruktur (Persero) or PT SMI Edwin Syahruzad said that the institution is different from the investment management institution, namely the Indonesia Investment Authority (INA). Although both of them are in contact with infrastructure projects, PT SMI is actually focused on financing.
Even though the principle is different, Edwin emphasized that it is possible for SMI to cooperate with INA. At least, the two of them can collaborate in asset recycling. Asset recycling is the monetization of state-owned assets, including state-owned enterprises (BUMN). The goal is to finance new infrastructure projects.
“What is clear is that in investing in equity or equity investors, we are in the position of developer investors [developer investors]. We prefer [tend to] enter from the start to capitalize on knowledge in terms of project preparation,” he said through a virtual discussion, Wednesday (31/3/2021 ).
Edwin explained that SMI also focuses on projects that are completely new (greenfield) such as collaborations with previous partners. Upon completion, they are expected to go out and look for new developments.
Meanwhile, there are three potential assets recycling between SMI and INA. In the short term, INA can do it in the form of a co-investment platform. Meanwhile, this investment means direct investment in infrastructure projects or assets. This platform can be carried out by SMI and INA with other institutional investors.
For the long term, the scheme that can be done is by establishing infrastructure funding in the form of a private equity fund. This means that SMI and INA can become sponsors, investors, or joint investment managers in the funding.
Finally, SMI offers infrastructure expertise, especially in conducting market intelligence, deal sourcing (source of agreement), the investment process, and coordinating with relevant stakeholders.
“But in the short term, we will still focus on co-investment and strengthen infrastructure expertise so that the investments we make can also bear fruit and also benefit society and the economy as a whole,” explained Edwin.