PT SMI allocates Rp70 billion to fund Singkawang infrastructure

PT Sarana Multi Infrastruktur (Persero) (PT SMI) has channelled financing worth Rp70 billion to the Singkawang City Government for the construction of 33 road sections and four bridges. The financing is intended to improve connectivity, drive economic growth, and strengthen public services in the region. “PT SMI has established a long-term partnership with Singkawang City, including during the pandemic to maintain regional economic stability, and today we see that commitment continuing through this productive financing initiative,” said PT SMI’s Director of Public Financing and Project Development, Faaris Pranawa, in a statement in Jakarta on Monday. He explained that this collaboration is part of PT SMI’s active role in providing adaptive financing solutions for local governments. “The construction of these roads and bridges is not merely a physical project, but a foundation to strengthen connectivity and drive economic activity, particularly in the services and tourism sectors. For us, financing is not a burden, but an instrument to accelerate development that, if managed well, will yield sustainable economic benefits,” Faaris stated. In 2020, PT SMI had provided National Economic Recovery (PEN) loans worth Rp200 billion to accelerate regional development through road and drainage improvements, as well as the revitalisation of buildings, procurement of furniture, and educational media. This loan has impacted smoother connectivity, improved basic infrastructure quality, and supported education and community welfare activities. Singkawang Mayor Tjhai Chui Mie expressed appreciation for the financing support provided by PT SMI in advancing development in the area. “Through this financing, we see the potential economic benefits that will impact an increase in Regional Own-Source Revenue (PAD), which has been studied jointly with Bappeda and the DPRD, and approved by the Ministry of Home Affairs. We are committed to implementing development quickly, transparently, and accountably as a mandate to drive regional progress,” said Tjhai Chui Mie. In the context of regional fiscal affairs, Singkawang City still faces challenges in strengthening financial independence, with an average PAD contribution to total regional revenue of 27.07 percent over the last three years. Nevertheless, the PAD performance trend shows positive growth, from Rp244.32 billion in 2023 to Rp305.26 billion in 2025, or consistent growth above 11 percent annually. Through this financing support, infrastructure development is expected not only to provide physical benefits but also to strengthen regional fiscal capacity through increased economic activity. This will ultimately impact PAD growth, job creation, and enhanced competitiveness of Singkawang City as one of the growth centres in West Kalimantan. Head of the West Kalimantan Regional Office of the Directorate General of State Assets, Bernadette Yuliasari Mulyatno, also stated that synergy between local governments and financing institutions is key to optimising development. “Singkawang City has a strategic position in West Kalimantan with strong economic and cultural potential to attract investment and create jobs. This financing is an important step to improve connectivity while strengthening the regional economy, supported by the Singkawang City Government’s good track record in financial management, enabling the building of fiscal credibility,” said Bernadette. This collaboration expands PT SMI’s regional financing portfolio. As of March 2026, PT SMI’s total regional financing commitments are recorded at Rp37.44 trillion, with outstanding loans of Rp15.25 trillion. PT SMI will continue to accelerate development financing as an effort to promote equitable and inclusive economic growth in Indonesia. The financing agreement was signed by PT SMI’s Director of Public Financing and Project Development, Faaris Pranawa, and Singkawang Mayor Tjhai Chui Mie, on Monday, 27 April 2026, at PT SMI’s office in Sahid Sudirman Center, Jakarta. The event was also attended by Deputy Mayor of Singkawang, Muhammadin, Chairman of the Singkawang DPRD, Sujianto, Head of the West Kalimantan Regional Office of the Directorate General of State Assets, Bernadette Yuliasari Mulyatno, President Director of Bank Kalbar, Rokidi, and other stakeholders.