PT SMI Secures Support from Islamic Development Bank for National Development Financing

Jakarta, 13 May 2023 – Edwin Syahruzad, President Director of PT Sarana Multi Infrastruktur (Persero) ("PT SMI") and Islamic Development Bank's Vice President of Operations, Dr. Mansur Muhtar, have signed a commitment document for a Line of Financing Facility (LoF) worth $100 million from IsDB. This LoF will provide PT SMI with alternative funding sources to finance national development as well as to support the Islamic financing ecosystem in Indonesia. Together, PT SMI and IsDB will catalyze infrastructure development in Indonesia through Shariah-based financing instruments. The signing, witnessed by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, and the President of IsDB, Muhammad Al-Jasser, took place in Jeddah, as part of the IsDB 48th Annual Meeting from 10-13 May 2023. Moreover, this signing of the LoF is a follow-up to the Memorandum of Understanding between PT SMI and IsDB at the G20 Presidency in Indonesia in 2022.

Edwin Syahruzad stated, "Our collaboration with IsDB has been ongoing, particularly in increasing the inclusivity of Shariah finance towards infrastructure projects in Indonesia. Through the Shariah financing ecosystem that we will continue to develop with IsDB, PT SMI hopes to attract other Shariah funding sources to support our national development priorities. This will create a large multiplier effect and have a positive impact on accelerating development in Indonesia."

Under the LoF framework, the collaboration between the two parties will cover potential financing in the area of Energy Transition and Renewable Energy, through the provision of blended financing facilities and capacity building, including through the Energy Transition Mechanism Country Platform, where PT SMI was designated by the Ministry of Finance to become the Country Platform Manager at the G20 Presidency in Indonesia in 2022. Additionally, IsDB can co-finance infrastructure projects developed by both business entities and local governments, as well as the development of Shariah financing products and businesses in PT SMI, to enhance the Shariah financing ecosystem, particularly towards national development.

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About PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) was established on February 26th, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB), with a role and mandate as a catalyst for the acceleration of national 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

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