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Do you know what an Infrastructure Financing Company in Indonesia is? If not, you can read this article to the bottom. Not many people know what an infrastructure financing company is. It's different when they hear the word leasing or multi-finance; the two words represent a finance company.
There are quite a few that enter into this financing company. In general, these finance companies are a significant part of the leading players in the financial industry other than banks. Based on data from APPI or the Association of Financing Companies in Indonesia, as of August 2021, the total number of finance companies in Indonesia is 167. This number has decreased compared to 2020. Well, so that you know about infrastructure financing companies in Indonesia in more detail, let's look at some interesting information below!
Before you find out other information about infrastructure financing companies in Indonesia, it's better if you know what they mean first. The definition of an infrastructure financing company is a business entity whose function is to carry out financing. One of them is providing funds for infrastructure projects.
The infrastructure itself is the infrastructure that can facilitate the mobility of the flow of goods and services. Every Infrastructure Financing Company must obtain a business license from the Minister of Finance. The permit for the Infrastructure Financing Company will be rejected or received no later than 30 working days after the company applies.
Then what is the legal basis for the Infrastructure Financing Company in Indonesia? Well, the legal basis of an Infrastructure Financing Company is a regulation from the Minister of Finance or the Minister of Finance. The regulation is Number 100/ PMK.010/ 2009. To find out more detailed legal basis, you can access this link.
There are several business activities offered by Infrastructure Financing Companies that you can take advantage of. Anything? Infrastructure companies offer direct lending for infrastructure financing. Infrastructure Financing Companies in Indonesia have refinancing business activities. Not only that, the company also provides subordinated loans related to infrastructure financing. In addition to supporting business activities, infrastructure financing companies can also provide credit support. Included in credit support are the provision of consulting services, equity participation, and so on. The last business activity is that infrastructure financing companies will provide other facilities related to infrastructure financing after obtaining approval from the Minister of Finance.
In accordance with the legal basis, the Infrastructure Financing Company in Indonesia states that there are several infrastructures that can be used as infrastructure financing. Anything? see below yes!
Road infrastructure. This infrastructure includes toll roads and toll bridges.
irrigation infrastructure. This infrastructure includes raw water carriers.
Drinking water infrastructure. Included in the infrastructure are raw water collection buildings, drinking water treatment plants, distribution networks, and so on.
Transportation infrastructure. For example seaports, rivers or lakes, airports and so on.
Telecommunications infrastructure. For example, telecommunications networks.
Electricity infrastructure. For example, power generation and distribution of electricity.
Wastewater infrastructure. For example, such as wastewater treatment plants, collection networks and main networks. There are also waste facilities such as transport and disposal sites.
Oil and gas infrastructure.
The procedure for establishing an Infrastructure Financing Company in Indonesia has been regulated in the Minister of Finance Regulation. One way of establishing that is regulated in the regulation is a legal entity. In Chapter III of the procedure for establishment and the licensing section, it is stated that the legal entity form of an Infrastructure Financing Company is a Limited Liability Company or Cooperative. If the legal entity is not a PT or Cooperative, it will be rejected.
Not only legal entities are discussed, but also the founders. Those who can establish an Infrastructure Financing Company are Indonesian Citizens or Indonesian Legal Entities. It can also be a foreign business entity and an Indonesian citizen or an Indonesian legal entity or a joint venture. What is meant by foreign business entities are multilateral organizations, which are international financial institutions and are engaged in development.
Talking about infrastructure financing companies in Indonesia is incomplete without discussing the profile of PT SMI. Yes, this one company is the best and most trusted Infrastructure Financing Company in Indonesia.
PT SMI is a company dedicated to improving national welfare through sustainable development, urbanization and providing facilities for expansion and utilization of the area. Everything can go well from the Indonesian Ministry of Finance and every stakeholder of PT SMI.
In order to realize sustainable development for investors, the government and the community PT SMI has three synergistic pillars that can help carry out its role as a Financing and Investment, Service and Consultation and Project Development company.
PT SMI Specializes itself as a manufacture of infrastructure, in addition to being a State-Owned Enterprise whose all capital is wholly owned by the Republic of Indonesia under the Ministry of Finance.
As the best Infrastructure Financing Company in Indonesia, PT SMI has two main focuses, namely providing benefits and contributing to society through social and economic conscious actions. Second, promote sustainability through the SDGs Sustainable Development Goals and climate change mitigation.
To know more you must also know the vision and mission of PT SMI. Well, the vision of this Infrastructure Financing Company is to become a catalyst. Especially in accelerating the development of national infrastructure. Meanwhile, the mission is as follows:
To become a strategic partner who is able to provide added value in infrastructure development in Indonesia.
Creating more flexible financing products.
Provide quality services with good governance.
In addition to the vision and mission above, PT SMI has values such as integrity, service excellence, partnership, innovation and trust.
As the best Infrastructure Financing Company in Indonesia, PT SMI is very selective in financing infrastructure. However, you don't need to be afraid to apply for financing to PT SMI if you need some funds for your project and infrastructure development. There have been many successful projects and infrastructures thanks to applying for funding at PT SMI. So, don't hesitate to apply for financing at this one finance company.
In 2021 ago, PT SMI financed telecommunications and drinking water projects. In other words, the infrastructure financed in the form of construction of telecommunications network development and drinking water supply system or SPAM is considered a vital project because it is a basic need for the community. The SPAMs that have been financed by PT SMI are Jatigede with a project value of 2.79 trillion, Kamijoro SPAM with a project value of around 334 billion, and Pekanbaru City SPAM with a value of 735 billion.
Not only that, from 2015 to 2019 PT SMI has financed 54 PSN or National Strategic Projects with a total project of 247.2 trillion. From the value of the project, the value of the commitment that has been contributed is 45.9 trillion. Of the 54 projects, the construction or repair of toll roads is dominated by 35 projects spread across Sumatra, Java, Kalimantan and Sulawesi.
The rest, PT SMI finances projects for the construction of steam and solar power plants, ports, electricity programs, natural gas networks, irrigation, terminals, fiber optic networks, LRT or Light Rail Transit, railroads, widening of national border roads and construction of embankments. PT SMI also finances essential infrastructure projects such as roads, markets, hospitals, access to lighting, transportation and telecommunications.
There are several reasons why you can make PT SMI the right financing company to finance your infrastructure or project. PT SMI offers innovative, unique and flexible financing and is a complementary banking product. This company has become a trusted institution and has strong government support. You also don't need to hesitate to apply for infrastructure project financing to PT SMI because 100% of the shares are owned by the Government through the Ministry of Finance.
Not only that, PT SMI is a pioneer in the issuance of Green Bonds in Indonesia. PT SMI is the first issuing company in the capital market in Indonesia using global standards or Green Bond Principles and ASEAN Bond Standards certified by CICERO.
PT SMI is the first institution in Southeast Asia that has been accredited by the GCF or Green Climate Fund to support the achievement of the Sustainable Development Goals or SDGs and the Climate Change program.
There are many financing and investment products that you can choose from. PT SMI works to complement banking services, providing alternative financing for infrastructure development instead of competing with financial institutions. The services provided are also varied, such as financing and investment, consulting services, project development, and strategic cooperation.
For financing and investment services, there are several products offered, such as commercial financing, public sector financing, sustainability financing, sharia financing, and equity investment. The interesting thing is that the consulting services that PT SMI provides will be developed according to the characteristics and needs of each infrastructure project.
The infrastructure financing company in Indonesia, PT SMI, also provides professional consulting services to both domestic and foreign investors, such as consulting and financing strategies, project development, investment, infrastructure improvement, and several other activities. PT SMI has financial consultants and services that are tailored to the needs of each project.
PT SMI Consulting Services products that you can use are investment advisors such as financial feasibility, business planning, and transaction consulting. Financial advisors such as financial modeling, capital management, financial restructuring, mergers, and acquisitions. Financial management services such as equity fundraising, loan fundraising, and fundraising using debt or loan instruments, whether bilateral, club deals or syndication.
The last is project development services. As an enabler, PT SMI helps ensure infrastructure development projects get better infrastructure investment project facilities through the company development pillar. PT SMI encourages and actively encourages the participation of business entities in infrastructure development through the Public-Private Partnership scheme. PT SMI does not only focus on KPBU projects but also assists non-KPBU project facilities in infrastructure provision, capacity building, and outreach.
Need big funds for infrastructure development? Contact the Infrastructure Financing Company in Indonesia PT SMI (Sarana Multi Infrastruktur), with the funds provided the acceleration of infrastructure development can be done immediately, let's contact the PT SMI website to get more information!