SMI allocates Rp178.02 billion to develop Maluku infrastructure
Jakarta (ANTARA) - PT Sarana Multi Infrastruktur (SMI) has allocated regional financing of up to Rp178.02 billion to support the development of roads, bridges, irrigation, and coastal protection in Maluku Province.
The financing agreement was signed between PT SMI and the Maluku Provincial Government.
“This financing is directed towards strengthening inter-regional connectivity while simultaneously increasing public access to economic centres and basic services,” said the President Director of PT SMI, Reynaldo Hermansjah, in Jakarta on Monday.
Reynaldo stated that regional infrastructure financing plays a vital role in opening access and strengthening community economic activities, particularly in archipelagic regions such as Maluku.
“Infrastructure development in Maluku is not merely about building roads, bridges, irrigation, or coastal protection. What we are building is the access that connects the community to economic hubs, basic services, and various opportunities within their region,” he added.
Through this financing, the company aims to play a part in providing infrastructure that directly benefits the community while strengthening the foundation for Maluku’s economic growth.
With this funding, the Maluku Provincial Government will manage 17 road sections, one provincial bridge, one irrigation network rehabilitation project, and four coastal protection infrastructure projects. This programme is part of the effort to strengthen basic infrastructure and regional connectivity as outlined in the Maluku Provincial Medium-Term Development Plan (RPJMD) 2025–2029.
In the roads and bridges sector, the length of provincial roads in Maluku is recorded at approximately 996.35 km, with a feasibility level of 54.79 per cent as of January 2026.
The programme for the development and improvement of road and bridge infrastructure is aimed at strengthening connectivity, opening access to frontier, outermost, and least developed (3T) regions, and connecting agricultural, plantation, and fishery centres, as well as ports, airports, government centres, and various basic service facilities.
From an economic impact perspective, financing studies estimate that every additional Rp1 of infrastructure financing has the potential to create an output of Rp1.73 in Maluku’s total economy. Regarding employment, every additional 100 workers in infrastructure construction or operations has the potential to create 157 jobs within the total economy.
This impact is expected to be felt across various economic sectors closely related to development and improved regional connectivity. The ten sectors expected to receive the greatest benefits include construction, food crop agriculture, electricity, fisheries, the food and beverage industry, and wholesale and retail trade (excluding motor vehicles and motorcycles).
Additionally, benefits are expected in real estate, educational services, seasonal and annual horticultural agriculture, as well as agricultural and hunting services.
The Governor of Maluku, Hendrik Lewerissa, stated that financing support is a crucial component in accelerating infrastructure development given Maluku’s geographical characteristics as an archipelagic province.
“Maluku requires infrastructure that can address the challenges of inter-regional connectivity. Therefore, this cooperation with PT SMI is an important step for the Maluku Provincial Government to accelerate the development of roads, bridges, irrigation, and coastal protection,” he explained.
This cooperation further strengthens PT SMI’s role in expanding the fiscal space of local governments through alternative financing options outside of the Regional Budget (APBD). This regional financing support is expected to meet development funding needs without reducing the budget available for maintaining other public services and needs.
As of August 2026, PT SMI recorded total regional financing commitments of Rp37.56 trillion, with outstanding financing reaching Rp12.85 trillion.