press-release     November 30, 2020

PT SMI Realizes Government Investment in the PEN Program for PT Kereta Api Indonesia (Persero) worth IDR 3.5 trillion

Jakarta, 30 November 2020 PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) realizes the National Economic Recovery program assistance in the form of Government Investment (“IP PEN”) worth IDR 3.5 trillion to PT Kereta Api Indonesia (Persero) (” PT KAI “). The goal is that PT KAI’s operational activities can resume after experiencing a serious decline in income due to restrictions on train passenger travel services during the Covid-19 pandemic. The agreement for the distribution of IP PEN from PT SMI to PT KAI was marked by the Signing of the IP PEN Agreement by Mr. Edwin Syahruzad, President Director of PT SMI with Mr. Didiek Hartantyo, President Director of PT KAI at the Office of the Directorate General of State Assets, Ministry of Finance (30/11).

The signing of the IP PEN agreement between PT SMI and PT KAI was witnessed by Mr. Isa Rachmatarwata (Director General of State Assets, Ministry of Finance), Mr. Carlo B. Tewu (Deputy for Law and Legislation, Ministry of BUMN), the Board of Commissioners and Directors of PT SMI and PT KAI, Director of State Assets Separated by DJKN, as well as Director of Law and Public Relations of DJKN.

Edwin Syahruzad, President Director of PT SMI, said “In the distribution process, PT SMI conducted an in-depth and comprehensive study of PT KAI’s financial condition. This study of investment grants was carried out not only from the financial aspect but also from the legal and economic feasibility aspects by involving independent institutions. In addition, PT SMI together with the Ministry of Finance has conducted a study on risk factors and mitigation efforts for these risks. It is hoped that with this Government Investment, PT KAI’s performance will recover “.

The results of a feasibility study conducted by PT SMI on PT KAI as a recipient of IP PEN, concluded that: (1) There is an aspect of the urgency of giving IP PEN to PT KAI because PT KAI has experienced a significant decline in terms of income and operating cash flow; (2) PT KAI has an important role in providing cheap and affordable public transportation via rail; (3) The granting of IP PEN has a positive impact on the economy, because the use of IP PEN funds also contributes to increasing fiscal revenues, both directly and indirectly; (4) Financial projections indicate that PT KAI is capable of returning the IP PEN; (5) There is no rejection from existing shareholders and creditors of PT KAI regarding the acquisition of IP PEN.

The method used by PT SMI to monitor and evaluate the distribution of IP PEN funds to PT KAI is carried out by monitoring PT KAI’s Periodic Reporting and Insidential Reporting. Periodic Reporting is monitored, among others, using the Consolidated Annual Report that has been audited by a Public Accountant Office, the Actual Financial Ratio Report, and the Realization of Fund Utilization Report. Meanwhile, for Insidential Reporting, the parameters used include information on other material matters that affect PT KAI’s performance and the ability to return IP PEN materially, as well as notification to the Ministry of Finance regarding strategic capital expenditure plans.

As one of the Special Mission Vehicles (SMV) under the coordination of the Ministry of Finance, PT SMI acts as a driving force for sustainable development and always maintains public trust. In every business activity, PT SMI always conducts a positive impact analysis, that the infrastructure built is economically and socially feasible for the community. PT SMI maintains public support and trust by always maintaining integrity and implementing good governance in the distribution of IP PEN funds. Therefore, PT SMI hopes that the IP PEN channeled to PT KAI can reduce the negative impact of the Covid-19 pandemic on PT KAI’s performance so that the benefits can be felt by the community through the availability of affordable and quality public transportation services.


About PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) which was 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 has a role and mandate as a catalyst for the acceleration of national infrastructure development.

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

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


Further information:

Ramona Harimurti
Head of Corporate Secretary

Dian Rufal
Communications & CSR

PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258


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