PT Sarana Multi Infrastruktur (Persero) signed a Memorandum of Understanding (MoU) with European Investment Bank Global (EIB Global) for sustainable infrastructure development in Indonesia. One form of this collaboration is exploring loans worth a maximum of 500 million Euros or around IDR 8.4 trillion which will be used for various financing needs.
“The funds that will be distributed by PT SMI will later target private and public entities involved in climate change control projects including New Renewable Energy, sustainable transportation facilities and other infrastructure that increases resilience to the impacts of climate change,” wrote PT SMI in official statement, Wednesday (28/2/2024).
PT SMI and EIB will also explore collaboration in the form of project origination, knowledge sharing, capacity building and technical assistance, related to the energy transition in Indonesia. This is said to be in line with PT SMI’s partnership with various local and international banks/financial institutions to develop capital from the government without relying solely on the capital market.
“PT SMI is very open to exploring more collaborations in the future to accelerate infrastructure development in Indonesia,” continued PT SMI.
The President Director of PT SMI, Edwin Syahruzad, welcomed this collaboration with EIB Global. According to him, EIB’s focus on environmentally friendly and sustainable projects is in line with PT SMI’s priorities.
“We are pleased with the EIB’s intention to work together with PT SMI in this matter. We believe that with EIB’s support, PT SMI can grow further and continue to be a leader not only in the energy transition sector, but also in the wider scope of sustainable infrastructure development in Indonesia,” said Edwin.
EIB also supports PT SMI’s efforts in helping the Indonesian Government to achieve the Net Zero Emission target by 2060. EIB Vice President for the Southeast Asia Region, Robert de Groot, said that Indonesia has gained momentum to create sustainable and environmentally friendly growth.
Together with PT SMI, EIB Global is committed to supporting and accelerating the energy transition in Indonesia.
“Therefore, today’s signing of the MoU marks a significant step towards achieving this goal, as it unites our efforts and allows us to achieve much more,” said Robert.
EIB Global’s commitment to encourage investment in change mitigation and resilience. climate, is part of the European Union’s Global Gateway initiative. The European Union Ambassador to Indonesia, Denis Chaibi, stated that the MoU between PT SMI and EIB is a real illustration of the European Union’s efforts to encourage sustainable investment in Indonesia.
“This also shows the European Union’s ongoing commitment to fulfilling its promise for the Just Energy Transition Partnership (JETP). This partnership requires coordinated efforts to build energy infrastructure projects and mobilize funding. This loan will be an important contribution in Team Europe’s support for the energy transition in Indonesia ,” he concluded.
February 28, 2024, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-7216087/smi-gandeng-bank-eropa-buat-kembangkan-infrastruktur-berkelanjutan-di-ri)