PT SMI allocates Rp192 billion for infrastructure and food security in West Sulawesi
Jakarta (ANTARA) - PT Sarana Multi Infrastruktur (Persero), also known as SMI, is providing financing worth a maximum of Rp192 billion to the West Sulawesi Provincial Government for the development of infrastructure and regional food security.
“Through this financing, we want to ensure that infrastructure development does not stop at physical construction, but provides benefits that can be felt by the community and strengthens the economic potential of West Sulawesi,” said SMI President Director Reynaldi Hermansjah, in a written statement in Jakarta on Thursday.
The financing covers road upgrades and preservation, bridge construction, the development of strategic areas, as well as the rehabilitation of weirs and the improvement of regional irrigation networks.
Reynaldi noted that infrastructure development is a vital component in strengthening inter-regional connectivity while simultaneously increasing public access to economic hubs and public services.
The company noted that 50.23 per cent of the road network conditions in West Sulawesi Province still require intervention.
“These conditions also affect vehicle operational costs, travel time, goods distribution, and community mobility,” he said.
On the other hand, the strengthening of irrigation infrastructure will be carried out through the rehabilitation of weirs and the improvement of irrigation area networks in Papalang Sampaga, Bantalaka, Lakejo, and Tobadak.
The rehabilitation is aimed at increasing the reliability of water services for the agricultural sector, thereby supporting increased land productivity and cropping indices, expanding effective planting areas, and reducing the risk of crop failure.
“This becomes increasingly strategic considering that the agriculture, forestry, and fisheries sectors contribute 47.41 per cent to the economy of West Sulawesi,” he added.
Reynally stated that this cooperation strengthens SMI’s role in expanding the fiscal space of local governments through alternative financing options outside of the Regional Revenue and Expenditure Budget (APBD).
“Regional financing support from PT SMI allows local governments to meet development funding needs without reducing the budget space required to maintain the sustainability of other public needs and services,” he said.
As of June 2026, SMI recorded total regional financing commitments of Rp37.41 trillion, with outstanding amounts reaching Rp13.67 trillion.