Jakarta, CNBC Indonesia \u2013 PT Sarana Multi Infrastruktur (Persero), or\nPT SMI, is playing an increasingly varied role in national\ninfrastructure development. As a development finance institution (DFI),\nPT SMI not only provides financing but also offers a range of products\nand arrangements tailored to the nature of projects and the needs of its\npartners, from businesses to local governments.<\/p>\n
As of August 2026, the cumulative value of projects supported by PT\nSMI stood at Rp1,312 trillion. The figure illustrates the multiplier\neffect of the company\u2019s role in driving infrastructure development\nacross sectors and regions of Indonesia.<\/p>\n
\u201cIndonesia\u2019s infrastructure needs are highly varied, so they cannot\nbe met with a single type of solution. For that reason, we are\ndeveloping PT SMI\u2019s role as a DFI across multiple dimensions, offering a\nwider range of financing products and arrangements so that each project\ncan be delivered and provide tangible benefits to the public,\u201d PT SMI\npresident director Reynaldi Hermansjah said in an official statement on\nTuesday (20 October 2026).<\/p>\n
The breadth of PT SMI\u2019s role is reflected in its financing\ncommitments. The company has recorded Rp99.71 trillion in commitments to\nbusinesses supporting infrastructure projects in energy, transport,\ntelecommunications, logistics and social infrastructure.<\/p>\n
Meanwhile, financing commitments to local governments have reached\nRp37.56 trillion. Through this instrument, PT SMI helps regions\naccelerate the provision of public infrastructure without relying\nentirely on annual budget capacity.<\/p>\n
PT SMI also undertakes project development and consultancy, including\nassistance with public-private partnership (PPP) arrangements. Through\nits Project Development Facility (PDF), it has assisted 35 projects\nworth nearly US$44 billion across 11 infrastructure sectors since 2011.\nIts contribution therefore extends beyond providing funds to preparing\nprojects to become bankable.<\/p>\n
One instrument that continues to grow is Islamic finance, with\ncommitments reaching Rp27.51 trillion. It is suited to infrastructure,\nwhich typically involves long construction periods, substantial\ninvestment requirements and cash flows that only begin once a project is\noperational.<\/p>\n
Using partnership, leasing, sale-and-purchase or profit-sharing\nstructures, funding can be tailored to the characteristics of an asset\nand a project\u2019s cash flows. PT SMI\u2019s Islamic finance portfolio now\ncovers a range of sectors, including Patimban Port, energy and logistics\nfinancing for the Pertamina Group, waste management and power generation\nprojects.<\/p>\n
PT SMI uses various Islamic contracts, including musyarakah- and\nijarah-based arrangements, while prioritising project viability and\nprudential principles. One example is the waste-processing project at\nthe Benowo final disposal site in Surabaya.<\/p>\n
In October 2025, PT SMI provided Rp250 billion in financing to PT\nPrakarsa Energi Sejahtera under a Musyarakah Mutanaqishah (MMQ)\narrangement for a pyrolysis-based waste-to-fuel facility. PT SMI\u2019s first\nproject in the waste-processing sector converts urban waste into\nalternative fuel, while supporting the circular economy and the\n2025\u20132029 National Medium-Term Development Plan (RPJMN) target of\nachieving 100% national waste management by 2029.<\/p>\n
PT SMI\u2019s capabilities, particularly in Islamic finance, also received\nrecognition from international organisations during 2026. The company\nwas named Indonesia\u2019s Best Islamic Project Finance House at the\nEuromoney Islamic Finance Awards 2026. Euromoney highlighted the growth\nof PT SMI\u2019s Islamic financing, its increasingly diverse project\nportfolio and its ability to structure large-scale infrastructure\ntransactions.<\/p>\n
At the institutional level, PT SMI was also recognised at the\nKarlsruhe Sustainable Finance Awards 2026 for its contribution to the\ndevelopment of sustainable finance and investment. The Benowo project\nreceived the Global Winner \u2013 IFN Social Impact Deal of the Year 2025\nfrom the IFN Awards, as well as a Merit Award in Category 5: Technology\nDevelopment at the ADFIAP Outstanding Development Projects Awards 2026,\norganised by the association of development finance institutions in the\nAsia-Pacific.<\/p>\n
PT SMI will continue to broaden its financing products and\narrangements, improve portfolio quality, diversify funding sources and\nstrengthen strategic partnerships with the government, businesses and\ninvestors. Islamic finance will continue to be developed as one of the\ndrivers of growth alongside other financing instruments.<\/p>\n
For PT SMI, the success of a DFI is measured not only by the size of\nits portfolio, but also by its ability to provide the right financing\nsolutions for each project and deliver economic, social and\nenvironmental benefits to the public.<\/p>\n
\u201cLooking ahead, we will continue to innovate and offer an\nincreasingly diverse range of financing solutions, including Islamic\nfinance, to support Indonesia\u2019s sustainable development,\u201d Reynaldi\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pt-smi-expands-dfi-role-to-accelerate-infrastructure-development-1792561827", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }