Home Investor Corner Indonesia’s SMI Seeks Funds US$5.7B in 2019

Indonesia’s SMI Seeks Funds US$5.7B in 2019

PT Sarana Multi Infrastruktur Seeks Funds US$5.7 Billion For Infrastructure, Sanitation and Education Projects in 2019 - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Following the achieving positive performance for 10 years, PT Sarana Multi Infrastruktur (SMI) seeks funds US$5.7 bilion to help the infrastructure, sanitation and education development projects in 2019, said senior officer today (03/28).

President Director of SMI Emma Sri Martini said on Thursday (03/28), besides coming from loans of Rp15 trillion ($1.07 billion), SMI will issue global bonds in the final quarter of this year. With these funds, the financing company will continue the construction of toll projects in Sumatra, Kalimantan and Papua.

“For the Java region there are already many toll roads that are closed, so we will focus on toll road development in these three regions,” she stated.

Meanwhile, for sanitation and education projects, Martini explained would continue to work with the government, both central and regional governments to accelerate and absorb prepared funds.

“In the education sector, we will work together with the Ministry of Research, Technology and Higher Education by presenting not only domestic education practitioners, but also from abroad, so that knowledge transfer can occur more effectively,” said the president director.

Martini acknowledged, with various innovations and creative infrastructure financing products, SMI further strengthened its steps to continue to grow and develop rapidly in carrying out the mandate of the Ministry of Finance as a Shareholder.

“This shows that the company has a strong foundation to grow sustainably,” she said.

Meanwhile, Finance Minister Sri Mulyani Indrawati assessed that the Ministry of Finance’s “special mission vehicles” had shown a real contribution to accelerate infrastructure projects in Indonesia through 261 infrastructure projects worth Rp1,151 trillion over 10 years.

She said, even though it was financed with initial capital of only Rp1 trillion in 2009, SMI contributed around 20 percent of the total estimated national infrastructure funds of Rp5,000 trillion.

Mulyani revealed that SMI’ contributions and achievements were obtained through innovative and creative financing products and products. Through the financing and investment business, the company manages commercial projects and the Regional Government with a project value of Rp553.6 trillion.

In addition, through the consulting services business, PT SMI is trusted to handle 46 projects worth Rp566.6 trillion to support the realization of various telecommunications, transportation, electricity, toll road, social infrastructure and drinking water infrastructure projects.

“In addition, SMI also participated in 14 public private partnership (PPP) assignments and 1 non-PPP assignment with a total project development value of Rp51.6 trillion,” she noted.

In the construction of national strategic projects, SMI has supported the realization of 52 projects worth Rp69.9 trillion, including the Trans Sumatra Toll Road Project, Trans Java Toll Road, Umbulan SPAM, Palapa Ring Optical Network, Urban Transportation, Renewable Energy and others.

While through the Regional Financing facility, SMI has also built regional infrastructure where 78 percent are in the Central and East Indonesia regions and the rest in the West Indonesia region.

Recorded, 20 Offering Letters (OL) have been issued and submitted to the local government, there are three regional heads who have obtained financing facilities of Rp464.2 billion and 17 other regions in the loan effectiveness process with a total financing value of Rp2.6 trillion.

“All of these projects created jobs for 1.97 million workers during the construction period,” said the minister.

At the launched of SDG Indonesia One (SIO) today, which connects various projects with the most suitable investors and has raised commitments of $2.3 billion in Sharia Hedging, a $128 million iB Cross Currency Hedging transaction mechanism to mitigate the risk of market fluctuations in business activities Sharia.

In addition, SMI has initiated Medium-Term Notes, such as fundraising activities of $100 million in 2016 and a total of $300 million, and became the largest in Indonesia.

Finally, SMI also innovated towards infrastructure financing, such as Cash Deficiency Support, Takeout Financing, Al Maushufah Fi Al Dzimmah Ijarah, Musharaka Mutanaqisah MMQ step up and Contractor Pre-Financing.

Written by Daniel Deha, Email: daniel@theinsiderstories.com