PT SMI Collaborates with AIIB and PT PLN to Support the Energy Transition in Indonesia

Sharm El-Sheikh, September 26, 2023 – PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) collaborates with PT Perusahaan Listrik Negara (Persero) (“PT PLN”) and Asian Infrastructure Investment Bank (AIIB), to support the acceleration of the energy transition in Indonesia. The signing of the partnership document was carried out on the sidelines of the AIIB annual meeting in Sharm El-Sheikh, Egypt, on September 26 2023. The signing was carried out by the President Director of PT SMI, Edwin Syahruzad, and Sir Danny Alexander, as Vice President, Policy and Strategy of AIIB. The signing ceremony was also witnessed directly by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, and the Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu.

This collaboration shows the commitment of PT SMI, AIIB and PT PLN, to achieve the target of reducing Indonesia's greenhouse gas emissions, as stated in the Nationally Determined Contribution (NDC) document, based on the Paris Agreement. This partnership aims to facilitate Indonesia's transition from conventional energy sources to renewable and sustainable alternative energy sources.

President Director of PT SMI, Edwin Syahruzad said, "PT SMI has the mandate and authority to collaborate with various institutions and stakeholders to develop a financing and investment framework to support environmentally friendly energy projects. Partnerships between stakeholders are needed to jointly encourage the energy transition in various cooperation sectors, including social, environmental, technological and financing. Through this joint effort, we are confident that in the near future, we can have clean energy that is sustainable, fair and affordable.”

“This is a crucial decade for action on climate change. "As a climate bank, AIIB will ensure that key clients, such as Indonesia, will be at the forefront of the environmentally friendly energy transition," said AIIB President, Jin Liqun. "By collaborating with key energy activists in Indonesia, AIIB plans to unlock and mobilize additional capital to increase access to environmentally friendly energy to Southeast Asia's largest economy."

Meanwhile, President Director of PT PLN, Darmawan Prasodjo, said, "Financial support is of course very important to support the acceleration of the energy transition in Indonesia. "This partnership can certainly realize PLN's commitment to increasing the portion of renewable energy in the energy mix in Indonesia."

As part of this collaboration, AIIB intends to provide long-term funding to support the Government of Indonesia's efforts to operationalize the transition to low-carbon energy. This financing will complement existing national and multilateral efforts, such as the Just Energy Transition Partnership (JETP), while encouraging a comprehensive and integrated energy transition approach in Indonesia.

Furthermore, PT SMI, AIIB, and PT PLN will explore opportunities for project preparation, knowledge sharing, capacity-building, and technical assistance in the field of energy transition. By leveraging each other's technical expertise and financial resources, the three institutions agreed to accelerate the implementation of environmentally friendly energy technologies and contribute to a greener and more sustainable future for Indonesia and the world.

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About PT Sarana Multi Infrastruktur (Persero) (“PT SMI”)

PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) was established on February 26, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance as a Non-Bank Financial Institution, with a role and mandate to act as a catalyst for the acceleration of infrastructure development.

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

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

For further information please contact:

Ramona Harimurti
Head of Corporate Secretary

PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258
Email: corporatesecretary@ptsmi.co.id
www.ptsmi.co.id