PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) (PT SMI) stands at the intersection of bank financing and microcredit, offering innovative financial solutions for Indonesia’s infrastructure development. Established in 2009 as a non-bank financial institution, PT SMI plays a pivotal role in accelerating infrastructure projects by bridging the private and government sectors through public-private partnerships (PPP). The company has become a trusted hub and strategic partner for national and regional institutions, driving Indonesia’s infrastructure transformation.

‍A Mission-Driven Approach

Guided by its mission to be a value-added strategic partner in infrastructure development, PT SMI offers flexible financing solutions backed by strong corporate governance. Its objectives include creating innovative financial products, fostering public-private collaboration, and ensuring compliance with the highest industry standards.

Pioneering Sustainable Finance

PT SMI is a leader in sustainable infrastructure financing. In December 2016, it became the first Southeast Asian company accredited by the Green Climate Fund (GCF), placing it on par with global financial institutions like Deutsche Bank. Further solidifying its commitment to sustainability, PT SMI was the first corporate issuer of green bonds in Indonesia, launching its first issuance in July 2018. These initiatives reflect the company’s dedication to fostering sustainable development for present and future generations.

Overcoming Challenges in Infrastructure Development

As a key catalyst in infrastructure financing, PT SMI faces several challenges, including a limited number of ready-to-finance projects and the need for better coordination among municipal governments. Additionally, the renewable energy sector presents fresh challenges, such as insufficient project sponsor capacity and a lack of supportive policies. To address these, PT SMI implements a holistic approach, integrating the Environment & Social Management Framework (ESMF) into all aspects of its operations.

Expanding Beyond Basic Infrastructure

In line with the Indonesian government’s plan to transform PT SMI into a national development financing institution, the company has expanded its portfolio beyond basic infrastructure to include social infrastructure projects. This shift enables PT SMI to provide municipal financing, empowering local governments to develop their regions effectively.

Regional and Global Recognition

PT SMI is recognized as a leading and trusted infrastructure financing institution in regional and multilateral circles. Its strong reputation has attracted significant international funding, including a $100 million credit facility and a $5 million grant from Agence Française de Développement (AFD) for energy efficiency projects. The company has also received grants from the Clean Technology Fund (CTF) and the Global Environment Facility (GEF) through the World Bank, further reinforcing its global standing.

Commitment to Social Responsibility

Beyond infrastructure financing, PT SMI actively contributes to community development. Through its Partnership and Community Development Program (PKBL), the company has allocated IDR 9 billion ($66.7 million) for micro-scale infrastructure projects in rural Indonesia. These initiatives focus on critical areas such as health, education, clean water, sanitation, environmental sustainability, and gender equality. Additionally, the company runs the ‘SMI Berbagi’ (SMI Care) program, dedicating IDR 140.9 million to support marginalized communities.

Recognized Excellence

PT SMI’s inclusion in the ACES Awards highlights its global reputation for excellence and professionalism. The company has received numerous accolades, including an AAA credit rating, a high Good Corporate Governance (GCG) score, and third place in the SOE category at Indonesia’s Annual Report Award (ARA) 2017. It has also been awarded the Golden Trophy for Excellent Financial Performance for five consecutive years and the Best Innovation Award for Sustainable Financial Products & Services from the Karlsruhe Sustainable Finance Awards in Germany.

Investing in Human Capital

Believing that human capital is its most valuable asset, PT SMI prioritizes employee development to sustain its growth and vision. The company actively invests in training programs, workshops, seminars, and discussion forums to ensure its workforce remains updated with the latest market trends. By fostering a culture of continuous learning, PT SMI strengthens its position as a catalyst for Indonesia’s national infrastructure development.