As a Special Mission Vehicle under the Ministry of Finance, PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) is committed to support Government of Indonesia in implementing Low Carbon Development Strategy including achieving target of Indonesia Enhanced Nationally Determined Contribution (NDC) to reduce GHG emission 31.89% unconditionally and 43.2% conditionally by 2030. In the long term, PT SMI is also committed to support the Government to reach net zero emission in 2060 or sooner in accordance with Indonesia Long Term Strategy for Low Carbon and Climate Resilience to address climate change issue.
Related to those objectives above and in line with PT SMI’s Sustainable Finance Action Plan 2022, in the annual plan, PT SMI sets the target to reduce the portion of financing for coal-fired power plants project (in outstanding value) maximum 7.5% and to increase the portion of financing related to climate change mitigation (in outstanding value) minimum 7.5% by the end of 2022. Furthermore, in the five year plan (2019-2024), PT SMI sets the target to reduce the number of financings/outstanding of coal-fired power plant projects maximum 5%, increase the number of financings/outstanding related to climate change mitigation minimum 10%, and increase the renewable energy financing portfolio with an outstanding up to IDR 3 trillion by the end of 2024. This shows an ambition from PT SMI, considering that the previous target for 2021 is to reduce the portion of financing for fossil fuel power plants project (in outstanding value) maximum 8% by the end of 2021.
Under the new assignment from Ministry of Finance as the Energy Transition Mechanism Country Platform Manager, PT SMI will provide transition finance and services to support the energy transition towards clean energy and low carbon economic development.
PT SMI has been actively committed in supporting climate related projects especially under the SDG Indonesia One platform, an integrated blended finance platform which aims to support the achievement of Sustainable Development Goals in Indonesia, including Goal No. 13: Climate Action. PT SMI has been successful in mobilizing financing to support SDG related projects from multilateral and bilateral institutions as well as philanthropies and donors. In addition, the commitment to support climate action is strengthened by PT SMI’s status as Green Climate Fund Accredited Entity, which enables PT SMI to access funding from GCF and increase its capacity in mobilizing the financing.