SMI introduces innovative investment instruments, broadens public participation

PT SMI views community involvement as a crucial element to broaden the capacity for financing development. By expanding public participation space, development can be carried out more inclusively and sustainably without relying on one or two sources of financing alone, said PT SMI President Director Reynaldi Hermansjah in a written statement received in Jakarta on Wednesday.

Moreover, he said, the instrument in the form of bonds would also form part of the Company’s strategy to diversify funding sources, complementing the funding track record which to date has been dominated by institutional and corporate investors.

Reynaldi emphasised that this initiative is part of the Company’s transformation into a Development Finance Institution (DFI) that is increasingly adaptive and inclusive.

“As a Government fiscal tool, we have a responsibility to ensure that national development progresses sustainably and delivers tangible benefits to the people. The plan to launch this investment instrument is a step to broaden public participation and connect the public directly with the national development agenda that is long-term oriented,” he said.

Since first issuing bonds in 2014, he continued, PT SMI has consistently been one of the active debt issuers in the domestic market through various instruments, including Green Bond, Sustainability Bond, Sukuk Mudharabah, as well as the company’s first zero-coupon bond in 2025. The total funds raised through domestic issues has reached more than Rp50 trillion by 2025, which reflects PT SMI’s position as one of the credible issuers trusted by investors.

PT SMI’s Chief Operating and Financial Officer Aradita Priyanti also said that diversification of funding will be a strategic focus for the Company going forward.

“Going forward, we will broaden the Company’s funding sources further while expanding cooperation with various financial institutions and the government, as well as opening space for the public to contribute to national infrastructure development,” Aradita said.

“With a financing portfolio that delivers a large multiplier effect on the economy, we are committed to ensuring that every funding effort remains relevant and aligned with development needs,” she added.