SMI Boss Reveals Strategy to Keep NPL Ratio for Infrastructure Financing Below 1 Per Cent for Five Years

Jakarta — PT Sarana Multi Infrastruktur (PT SMI), the Special Mission Vehicle of the Ministry of Finance, said its non-performing loan (NPL) ratio has remained below 1 per cent in the last five years, a consistency attributed to the company’s risk-management practices in financing national infrastructure projects. As an infrastructure financing institution under the Ministry of Finance, PT SMI bears a mandate as a sustainable development financier. The company pursues not only portfolio growth but also ensures that asset quality remains healthy, reflected in credit quality being either healthy or problematic. ‘We are stepping up risk mitigation for those projects. However, our NPL figure is still relatively well maintained,’ said PT SMI’s President Director, Reynaldi Hermansjah, at a media briefing in Jakarta on Tuesday, 3 March 2026. Based on unaudited financial performance up to 31 December 2025, SMI recorded a net NPL of 0.45 per cent. This continues a trend of staying below 1 per cent since 2020, even as the financing sector faced pandemic pressures and global volatility, namely 0.02%, 0.58%, 0.34%, 0.35%, and 0.41%. PT SMI’s Chief Operating and Financial Officer, Aradita Priyanti or Poppy, said the success in maintaining the troubled credit rate stems from management’s implementation of a comprehensive risk-management framework, covering credit, operational, market, liquidity, legal, strategic, compliance, reputation, and governance risks. This approach ensures every project financed undergoes screening, feasibility analysis, and layered oversight, resulting in SMI’s credit quality rating AAA from Pefindo and Baa2 from Moody’s Ratings. ‘The comprehensive risk-management framework yields net NPL below 1 per cent in the last five years,’ Poppy said. Additionally, PT SMI maintains strong provisioning. Over this period, the company’s Loan Loss Coverage (LLC) ratio reached 399.56 per cent, meaning its provisions for financing losses are nearly four times the total NPL exposure, providing a solid buffer against potential default risk. Fundamentally, PT SMI’s financial performance also shows stable growth over five years. The outstanding financing reached Rp94.46 trillion in 2025, with a five-year compound annual growth rate (CAGR) of 6.1 per cent.