PT SMI Allocates Rp885 Billion in Financing to Alleviate Surabaya's Traffic Congestion

PT Sarana Multi Infrastruktur (Persero) (PT SMI) has disbursed financing of up to Rp885.85 billion to the Surabaya City Government in East Java, focused on strategic projects for the development of the Western Outer Ring Road (JLLB) and the widening of Wiyung-Menganti Road. This financing is expected to reduce traffic congestion while improving regional connectivity. “We see the need for urban infrastructure becoming increasingly urgent, particularly in addressing congestion that directly impacts productivity,” said PT SMI’s President Director Reynaldi Hermansjah in a statement in Jakarta on Sunday. The financing agreement was signed by Surabaya Mayor Eri Cahyadi and PT SMI’s Director of Public Financing and Project Development, Faaris Pranawa, as part of efforts to accelerate urban infrastructure development amid growing complexities in urban mobility pressures. The signing ceremony was witnessed by PT SMI President Director Reynaldi Hermansjah and several officials from the Surabaya city government. Reynaldi explained that the two projects play a crucial role in improving Surabaya’s transportation system. The construction of the Western Outer Ring Road will help distribute traffic flow more evenly, thereby reducing the burden on main roads. Meanwhile, the widening of Wiyung-Menganti Road is intended to address vehicle density in one of the high-traffic intensity corridors. These two projects are part of seven urban infrastructure projects in Surabaya for the 2026-2027 period. Accordingly, the Surabaya City Government has proposed an infrastructure financing plan with a total funding requirement of around Rp3.16 trillion. Reynaldi stated that this financing is part of the company’s strategic approach to supporting major cities in facing urbanisation challenges. “This project will directly reduce traffic bottlenecks in Surabaya while enhancing the city’s logistics efficiency as the economic hub of East Java. Therefore, this financing is directed towards creating a more efficient transportation system and supporting the city’s economic activities,” he said. Surabaya Mayor Eri Cahyadi expressed appreciation to PT SMI for the financing support provided. He emphasised that strengthening connectivity is key to enhancing the city’s competitiveness amid increasingly dynamic economic activities, while also promoting equitable economic growth in Surabaya. This project will serve as an important foundation in building a more efficient, integrated, and sustainable urban transportation system. In addition to providing solutions to transportation issues, the project also brings significant economic impacts. With PT SMI’s financing support, capital expenditure is projected to increase by 40.81% from 2025 to 2026. This increase has the potential to drive regional Gross Domestic Product (GDP) growth to Rp29.79 trillion, with PT SMI’s financing contribution estimated at Rp9.1 trillion. In terms of direct benefits, the development is expected to lower vehicle operating costs, reduce travel times, and improve transportation safety. On a broader scale, the project will also strengthen accessibility and support equitable development across various areas of Surabaya City. As a Development Finance Institution (DFI), PT SMI continues to provide financing that is not only oriented towards physical development but also delivers sustainable economic and social impacts. As of February 2026, PT SMI’s financing commitments to local governments have reached Rp37.08 trillion, with outstanding loans amounting to Rp14.90 trillion. Support for the Surabaya City Government is part of PT SMI’s commitment to helping Indonesian cities become more efficient, connected, and highly competitive.