PT SMI Expands DFI Role to Accelerate Infrastructure Development
Jakarta, CNBC Indonesia – PT Sarana Multi Infrastruktur (Persero), or PT SMI, is playing an increasingly varied role in national infrastructure development. As a development finance institution (DFI), PT SMI not only provides financing but also offers a range of products and arrangements tailored to the nature of projects and the needs of its partners, from businesses to local governments.
As of August 2026, the cumulative value of projects supported by PT SMI stood at Rp1,312 trillion. The figure illustrates the multiplier effect of the company’s role in driving infrastructure development across sectors and regions of Indonesia.
“Indonesia’s infrastructure needs are highly varied, so they cannot be met with a single type of solution. For that reason, we are developing PT SMI’s role as a DFI across multiple dimensions, offering a wider range of financing products and arrangements so that each project can be delivered and provide tangible benefits to the public,” PT SMI president director Reynaldi Hermansjah said in an official statement on Tuesday (20 October 2026).
One institution, a range of financing solutions
The breadth of PT SMI’s role is reflected in its financing commitments. The company has recorded Rp99.71 trillion in commitments to businesses supporting infrastructure projects in energy, transport, telecommunications, logistics and social infrastructure.
Meanwhile, financing commitments to local governments have reached Rp37.56 trillion. Through this instrument, PT SMI helps regions accelerate the provision of public infrastructure without relying entirely on annual budget capacity.
PT SMI also undertakes project development and consultancy, including assistance with public-private partnership (PPP) arrangements. Through its Project Development Facility (PDF), it has assisted 35 projects worth nearly US$44 billion across 11 infrastructure sectors since 2011. Its contribution therefore extends beyond providing funds to preparing projects to become bankable.
Islamic finance gains traction
One instrument that continues to grow is Islamic finance, with commitments reaching Rp27.51 trillion. It is suited to infrastructure, which typically involves long construction periods, substantial investment requirements and cash flows that only begin once a project is operational.
Using partnership, leasing, sale-and-purchase or profit-sharing structures, funding can be tailored to the characteristics of an asset and a project’s cash flows. PT SMI’s Islamic finance portfolio now covers a range of sectors, including Patimban Port, energy and logistics financing for the Pertamina Group, waste management and power generation projects.
PT SMI uses various Islamic contracts, including musyarakah- and ijarah-based arrangements, while prioritising project viability and prudential principles. One example is the waste-processing project at the Benowo final disposal site in Surabaya.
In October 2025, PT SMI provided Rp250 billion in financing to PT Prakarsa Energi Sejahtera under a Musyarakah Mutanaqishah (MMQ) arrangement for a pyrolysis-based waste-to-fuel facility. PT SMI’s first project in the waste-processing sector converts urban waste into alternative fuel, while supporting the circular economy and the 2025–2029 National Medium-Term Development Plan (RPJMN) target of achieving 100% national waste management by 2029.
International recognition
PT SMI’s capabilities, particularly in Islamic finance, also received recognition from international organisations during 2026. The company was named Indonesia’s Best Islamic Project Finance House at the Euromoney Islamic Finance Awards 2026. Euromoney highlighted the growth of PT SMI’s Islamic financing, its increasingly diverse project portfolio and its ability to structure large-scale infrastructure transactions.
At the institutional level, PT SMI was also recognised at the Karlsruhe Sustainable Finance Awards 2026 for its contribution to the development of sustainable finance and investment. The Benowo project received the Global Winner – IFN Social Impact Deal of the Year 2025 from the IFN Awards, as well as a Merit Award in Category 5: Technology Development at the ADFIAP Outstanding Development Projects Awards 2026, organised by the association of development finance institutions in the Asia-Pacific.
Commitment to expanding its contribution
PT SMI will continue to broaden its financing products and arrangements, improve portfolio quality, diversify funding sources and strengthen strategic partnerships with the government, businesses and investors. Islamic finance will continue to be developed as one of the drivers of growth alongside other financing instruments.
For PT SMI, the success of a DFI is measured not only by the size of its portfolio, but also by its ability to provide the right financing solutions for each project and deliver economic, social and environmental benefits to the public.
“Looking ahead, we will continue to innovate and offer an increasingly diverse range of financing solutions, including Islamic finance, to support Indonesia’s sustainable development,” Reynaldi concluded.