PT SMI Supports Sustainable Development by Issuing the First Green Bond in Indonesia
Jakarta, 1 February 2023: Representatives from the Tony Blair Institute for Global Change (“TBI”) and PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) as Indonesia’s Energy Transition Mechanism (“ETM”) Country Platform Manager, today signed a Memorandum of Understanding (MoU) to promote and enhance the development of energy transition and transition finance, including to support the interaction with Indonesia’s JETP infrastructure which are pivotal for Indonesia’s Net Zero achievement.
TBI and PT SMI’s collaboration will revolve around knowledge sharing, strategy design, and partnership facilitation with government, industry members and global investors to further pave the way for a just energy transition in Indonesia. Indonesia has identified 15 GW for early retirement Coal Fired Power Plants (CFPP). Indonesia is already looking to mobilize $4 Bn funding to accelerate retirement of up to 2 GW CFPP early and reduce an estimated 50 million tons of carbon dioxide emissions by 2030 and 160 million tons by 2040.
TBI advises political leaders worldwide on strategy, policy and delivery, utilising technology as the key enabler across all three. A key goal for TBI in Indonesia is to support the country’s energy transition as part of its work with stakeholders to bolster broader economic growth.
PT SMI as special mission vehicle under the Indonesian Ministry of Finance, has responsibility as the implementing agency for an Integrated Platform of Blended Finance to advance Indonesia’s Sustainable Development Goals and be the catalyst for the acceleration of Indonesia’s development. In November 2022, PT SMI was appointed as the ETM Country Platform Manager to develop a financing and investment framework for the ETM program in the country.
Shuhaela Fabya Haqim, TBI Indonesia Country Director said:
“Today, one of the greatest challenges facing leaders around the world is addressing the impact of climate change, and finding new, innovative solutions to help achieve sustainable economic growth. The role that technology can play in this offers exciting opportunities, rightly recognised by the Indonesia government which has made it a priority. TBI supports governments to build open, inclusive and prosperous societies and we are thrilled to be working alongside PT SMI to support Indonesia’s ambitious energy transition objectives.”
Edwin Syahruzad, President Director of PT SMI said:
“Designing the most suitable framework in financing and investment of the energy transition agenda in Indonesia, will require partnership by mean of exchanging ideas as well as developing a communication strategy. The collaboration between PT SMI and TBI demonstrates our progressive efforts in addressing climate change impact through the development of ETM in Indonesia, where PT SMI is mandated to become the country platform manager. From this milestone, we expect a sound and sustainable design of the ETM in Indonesia to create the just and affordable transition for the people and the earth.”
About the Tony Blair Institute for Global Change
The Tony Blair Institute for Global Change equips governments to respond to today’s challenges and seize tomorrow’s opportunities. We work with political leaders and governments worldwide on strategy, policy and delivery – with technology as an enabler of all three. With 600 staff and growing, we operate in more than 30 countries. For further information please contact:
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:
Head of Corporate Secretary
Head of Communications Unit
PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258