SMI Disburses Rp37 Trillion Jumbo Funds For Regional Governments

Illustration. (Photo: Doc. Antara)

JAKARTA - President Director of PT Sarana Multi Infrastruktur (Persero) or SMI Edwin Syahruzad will disburse a loan of Rp37 trillion to the regional government (Pemda). The loan will flow to the regional government in the amount of Rp6.65 trillion and the regional National Economic Recovery (PEN) program loan of Rp30.43 trillion.

"Regular financing has reached Rp6.65 trillion for 29 local governments and there is also a financing commitment in the context of regional PEN loans, which is Rp30.43 trillion," added Edwin, in the Indonesia Sustainable Development Day 2021 webinar, Wednesday 10 November yesterday.

SMI has been disbursing loans regularly to local governments since 2015. This is done to accelerate the development of infrastructure and public services in the regions.

Meanwhile, regional PEN loans are ad hoc facilities to support regions in order to recover the economy due to the COVID-19 pandemic. SMI disbursed regional PEN loans specifically since last year and this year.

Currently, SMI has also provided facilities for the preparation of 23 projects in 21 regions. This is done in order to overcome the problem of lack of budget and increase the capacity of local governments in preparing the infrastructure.

However, said Edwin, SMI cannot help finance all types of infrastructure. There are only a few sectors that can be given an injection of funds, including roads, bridges, hospitals, markets, transportation, water resources, telecommunications, oil and gas, and downstream, to waste management.

Then there is the irrigation sector, new and renewable energy and energy conservation, regional infrastructure, correctional facilities, tourism, education, informatics, sports, arts, and public housing which PT SMI can assist with funding.

In detail, the regional government in Sumatra received the largest portion of financing compared to other islands, namely 36 percent. Meanwhile, in terms of sectors, roads and bridges are infrastructures that are widely requested for financing.