One company stands tall in the no-man’s land between bank financing and micro credit.
Registered in Indonesia, in 2009, PT Sarana Multi Infrastruktur (Persero) operates in financing infrastructure as a non-bank financial institution, providing innovative and flexible products and services, strong stakeholders management, and bridging the private and government sectors for public private partnerships (PPP). In playing Its role as catalyst of Indonesia infrastructure development, The Company does extra miles of its core business. Currently The Company become the hub, strategic partner, and pull of trust both from national and regional institutions in accelerating Indonesia infrastructure development
This is in keeping with their mission of becoming a value-added strategic partner in developing Indonesia’s infrastructure, and their objectives of establishing innovative and flexible financing products, coupled with quality services which comply with good corporate governance.
As of December 2016, PT SMI is the first company in Southeast Asia to be accredited as an Entity of Green Climate Funds (GCF), giving them equal accreditation with world-class financial companies such as Deutsche Bank. The company also registered as the first corporate issuers for green bond that release in July 2018. This issuance show PT SMI’s commitment in fostering sustainable development for now and future.
Best practices championed by the company is the holistic approach in accelerate the development, including the Implementation of Environment & Social Management Framework (ESMF) in all aspects of the company’s activities. As a catalyst in infrastructure development, PT SMI’s biggest challenges are the limited number of ready projects to be financed and coordination inter municipals that request strong commitment from various stakeholders. Fresh challenges are the renewable energy financing sector, insufficient capacity of project sponsors as well as unsupported renewable energy projects.
In line with the government’s plan to transform the company into an Indonesian development financing institution, sectors that can be financed by the company have expanded from basic infrastructure to also include social infrastructure. The feature also enables The Company to provide municipal financing, a unique financing mechanism that helps to leverage local government’s capacity in developing their region.
In regional and multilateral, PT SMI is known as leading and trusted infrastructure financing company. The reputation has bring the company many facilities and grants, such as credit facility amounting USD 100 million and grant amounting USD 5 million from Agence Francaise de Developpement (AFD) to finance energy efficiency projects, Grant from the Clean Technology fund (CTF) amounting USD 49 million and the Global Environment Facility (CEF) amounting 6.25 Million from the World Bank, and many others.
For its Corporate Social Responsibility initiatives, Persero has developed a series of initiatives under its Partnership and Community Development Program (PKBL) as well as allocating funds amounting to IDR 9 billion (USD 66,667,000), for micro-scale infrastructure development in rural areas throughout Indonesia. The CSR is addressing limited access to health, education, clean water, sanitation, environment and gender equality. The company also has a Non-PKBL CSR Program, which implemented through its ‘SMI Berbagi’/SMI Care activities via a IDR 140.9 million fund focused on helping and supporting marginal communities around the company.
For PT SMI, being included in the ACES Awards means global acknowledgement of the organisation’s high standard of professionalism. The ACES Awards will now join Persero’s
AAA-Rating from the Ratings Agency, its Good Corporate Governance (GCG) performance, third place in the SOE Category in Indonesia’s Annual Report Award (ARA) 2017, the Golden Trophy for Excellent Financial Performance for five consecutive years from 2012 to 2016 in the 8th Infobank BUMN Awards 2017, and Best Innovation Award in Sustainable Financial Products & Services from Karlsruhe Sustainable Finance Awards 2018- Germany.
The company believes strongly in human capital as its most important asset, believing that people power will enable it to grow and achieve its vision of becoming a leading catalyst in the acceleration of Indonesia’s national infrastructure development. It also believes that the main factor in creating human capital with high quality and excellent performance is through an effective human capital management strategy implementation. All employees and top management are therefore fully involved in trainings, workshops, seminars and discussion forums to keep their knowledge and ability updated with newest market update.
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