For The Sake Of Building Flyovers, Structuring Airports And The Old City Area, The Riau Islands Provincial Government Loans IDR 180 Billion To State-owned PT SMI

Riau Islands Governor Ansar Ahmad/DOK ANTARA

KEPRI - The Riau Islands Provincial Government (Kepri Provincial Government) borrowed Rp180 billion from PT Sarana Multi Infrastruktur (SMI) to finance the construction of seven strategic projects in the local area.

"We will immediately sign the MoU, then proceed with the process of disbursing the loan funds," said Riau Islands Governor Ansar Ahmad in Tanjungpinang, Antara, Friday, August 19.

Ansar said the disbursement of PT SMI's loan funds would be adjusted to the progress or progress of the seven strategic projects of the Riau Islands Provincial Government.

The seven projects in question are the construction of an overpass (fly over) at the Ramayana intersection, the arrangement of the airport road, the arrangement of the old city area, the integration of platforms 1 and 2, and the arrangement of the capital city of the Riau Islands Province in Tanjungpinang City.

"Then there is the construction of a workshop building in Karimun Regency," he said.

Ansar explained that the loan payment scheme will be financed through the Riau Islands Provincial Government's Regional Revenue and Expenditure Budget (APBD) for the 2023-2024 fiscal year plus an interest of 5.5 percent.

"So, our target in two years has been paid off. In 2023, the budget is Rp. 90 billion, and in 2024, Rp. 90 billion," he added. Ansar continued that his party in August 2021 made a breakthrough by visiting PT SMI to look for alternative infrastructure financing in Riau Islands.

This is intended so that regional development continues and the financing of COVID-19 is not disrupted.

PT SMI is a State-Owned Enterprise (BUMN) whose entire capital is wholly owned by the Republic of Indonesia under the Ministry of Finance, which was established based on the Regulation of the Minister of Finance Number 100/PMK. 010/2009 concerning Infrastructure Financing Companies.

There are eight operational sectors that can be financed by PT SMI, namely roads and bridges, transportation, oil and gas, telecommunications, waste management, electricity, irrigation, and drinking water supply.