SMI disburses Rp99.86 billion to Tebo Regency for road construction

Road infrastructure development and healthcare service strengthening are crucial foundations for driving inclusive regional economic growth. PT Sarana Multi Infrastruktur (Persero) (SMI), a Special Mission Vehicle (SMV) under the Ministry of Finance (MoF), has disbursed Rp99.86 billion to the Tebo Regency Government in Jambi for road infrastructure and healthcare facility construction in the regency. SMI’s Director of Public Financing and Project Development, Faaris Pranawa, stated that the funding is part of the company’s effort to assist local governments in delivering development that directly benefits the public. ‘Road infrastructure development and healthcare service strengthening are vital foundations for fostering inclusive regional economic growth,’ Faaris Pranawa said in a statement received in Jakarta on Thursday. The funding comprises Rp46 billion for two road segments and Rp53.86 billion for healthcare support, to be used for developing inpatient facilities, procuring medical equipment, and upgrading infrastructure at Sultan Thaha Saifuddin Regional Hospital in Muara Tebo. The two road projects are expected to deliver significant social and economic benefits by improving regional connectivity, streamlining goods distribution, and reducing travel costs and time. Improved road infrastructure is also anticipated to strengthen agricultural and trade supply chains, boost SME growth, create new jobs, and enhance public access to education, healthcare, and other services. Meanwhile, the development of Sultan Thaha Saifuddin Regional Hospital is expected to improve public healthcare quality through better inpatient facilities and medical equipment. ‘Through this financing, SMI hopes to strengthen inter-regional connectivity, make agricultural and trade distribution more efficient, and improve public access to quality healthcare,’ Faaris added. Project feasibility studies indicate positive economic benefits with a Net Present Value (NPV) of approximately Rp162.43 billion and an Internal Rate of Return (IRR) of 36.14%, significantly above the discount rate used in the analysis. This demonstrates the project’s strong long-term economic and social impact on Tebo Regency residents. Tebo Regent Agus Rubiyanto said the financing is a strategic step for the regency to accelerate infrastructure development and enhance public service quality, particularly in healthcare. ‘We hope the road construction and hospital development will deliver tangible benefits for residents and support sustainable regional economic growth,’ Agus Rubiyanto stated. This collaboration further strengthens SMI’s portfolio of local government financing. As of March 2026, SMI’s total local government financing commitments have reached Rp37.44 trillion, with outstanding amounts of Rp15.25 trillion.