Accelerating Infrastructure Development, SMI Has Disbursed IDR 40 Trillion Financing To Regions

President Director of PT Sarana Multi Infrastruktur (SMI) Edwin Syahruzad. (Photo: Doc. Antara)

JAKARTA - President Director of PT Sarana Multi Infrastruktur (SMI) Edwin Syahruzad revealed that his party had distributed IDR 40 trillion in financing to the regions. Of that amount, the total outstanding or recorded receivables amounted to IDR 30 trillion as of July 2022.

"So this is indeed the regional loan support that we provide can indeed be an alternative for regions to accelerate infrastructure development," said Edwin at the 100 Indonesian Economist Workshop, quoted by Antara, Wednesday, September 7.

PT SMI has been providing support for regional development, one of which is through regional loan activities that have been carried out since 2016 through regular loans.

However, he said, these activities developed very rapidly when there was a National Economic Recovery (PEN) program under the name of regional PEN loans, which massively increased the regional loan portfolio.

According to Edwin, the acceleration of infrastructure development will help the region in improving the quality of public services, because public services such as the provision of drinking water, sanitation, and solid waste, which are regional authorities or authorities are still lagging behind and require capital.

"Therefore, we make alternative financing for the area for one thing, namely the quality of public services," he said.

In the future, he continued, PT SMI will create a program-based loan scheme to be able to encourage policy and institutional reforms in order to achieve the targets of development programs in the regions.

As for loans to regions, especially in the PEN program, PT SMI gets funds from the State Revenue and Expenditure Budget (APBN), while the rest comes from PT SMI's corporate funds.