PT SMI and PLN Agree Memorandum of Understanding to Support the Acceleration of Energy Transition

Bali, 18 October 2022 – PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) and PT PLN (Persero) (“PLN”) officially signed a Memorandum of Understanding (MoU) to jointly support the government's agenda to accelerate energy transition in Indonesia, as one of the priority agendas of the 2022 G20 Indonesia Presidency.

The signing of this MoU was carried out by Edwin Syahruzad as President Director of PT SMI and Sinthya Roesly as Finance Director of PLN, witnessed by Deputy I Minister of State-Owned Enterprises, Pahala Nugraha Mansury, at the State Owned Enterprise (SOE) International Conference 2022 at the Bali Nusa Dua Convention Center (BNDCC), Tuesday (18/10).

This collaboration between PT SMI and PLN will focus on developing financing and investment schemes in connection with the energy transition program being carried out by PLN, including but not limited to the early retirement program for the steam power plant project.

The Energy Transition Mechanism (“ETM”) is a transition mechanism from the use of coal as an energy source to new and renewable energy, with the aim of achieving the government's target of controlling greenhouse gas emissions to 31.89% with own efforts in 2030, as well as achieving emissions net zero by 2060. One of the sectors that can directly contribute to reducing greenhouse gas emissions is the energy sector, where this sector uses coal as an energy source, which has a fairly high impact on carbon emissions. So that collaboration of stakeholders is needed to jointly make this energy transition in various sectors of cooperation, both social, environmental, technological, to financing.

Following his appointment as ETM Country Platform Manager based on the Decree of the Minister of Finance of the Republic of Indonesia Number 275/KMK.010/22 concerning Assignment to the Company (Persero) PT Sarana Multi Infrastruktur in the Framework of Providing Fiscal Support through Funding and Financing Frameworks for the Acceleration of Energy Transition in the Electricity Sector, PT SMI has the mandate and authority to collaborate with various institutions and stakeholders to develop a financing and investment framework for the ETM program. According to the plan, the financing and investment scheme for ETM will be designed by PT SMI through a blended finance scheme or mixed funding either from a combination of Indonesian government funds through specific schemes, multilateral funds, and commercial funds originating either through loans or capital market instruments.

As stated by the President Director of PT SMI, Edwin Syahruzad at the ETM panel discussion session, the Country Platform Manager of ETM is in charge of managing Indonesia's energy transition mechanism, which can be sourced from commercial and non-commercial funding on a sustainable basis, such as funding from the Indonesia sovereign wealth fund, as well as financing from donor/philanthropic institutions, multilateral/bilateral institutions, and other international institutions. Cooperation with PLN in financing the energy transition program will certainly involve various parties in the blended finance scheme.

President Director of PLN, Darmawan Prasodjo, said PLN and PT SMI will jointly develop a scheme for financing and investment plans from early retirement to support the acceleration of the transition from coal to renewable energy.

"PLN will support this initiative by providing project information related to the Energy Transition Mechanism (ETM) and fulfilling the requirements to obtain financing facilities from PT SMI and/or third parties who are partners with PT SMI," he concluded.

-end-

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 plays a role and has a mandate as a catalyst for accelerating national 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 Government and Business Entity Cooperation (PPP) scheme which includes various financial institutions, both private and multilateral. PT SMI actively supports the implementation of PPPs 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) Consulting Services, namely solutions to the needs of professionals and experts in infrastructure and (3) Project Development, namely helping the Persons in Charge of Cooperation Projects (PJPK) to prepare infrastructure projects.

For further information:

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

PLN at a Glance

PT PLN (Persero) is a state-owned electricity company that continues to commit and innovate to carry out a great mission to illuminate and move the country. Having a vision to become the leading electricity company in Southeast Asia, PLN is moving to become the customer's number 1 choice for Energy Solutions. PLN carries the Transformation agenda with the aspirations of Green, Lean, Innovative, and Customer Focused to bring electricity for a better life. PLN can be contacted through the PLN Mobile application available on the PlayStore or AppStore.

Contact person
Gregory Adi Trianto
Executive Vice President of Corporate Communications and TJSL PLN
tel. 021 7261122
Facs. 021 7227059