PT SMI and AFD Renew Strategic Partnership for a Low Carbon Future in Indonesia

PRNewswire
Jakarta [Indonesia], May 29: PT Sarana Multi Infrastruktur (Persero) ("PT SMI") and Agence Francaise de Developpement ("AFD") continue their partnership to strengthen cooperation in promoting sustainable development, mitigating the impacts of climate change, and green financing in Indonesia. This cooperation is outlined in the new Memorandum of Understanding (MoU), signed by the President Director of PT SMI, Reynaldi Hermansjah, and the CEO of AFD, Remy Rioux, on Wednesday, May 28, 2025, at the Fairmont Hotel, Jakarta. The signing of the MoU was also witnessed directly by the European Union Ambassador to Indonesia.
and Brunei Darussalam, Denis Chaibi.
This is the third MoU signed between PT SMI and AFD. The purpose of this latest MoU is to further promote cooperation between the two institutions, beyond the scope of the financing agreement. Some points of cooperation outlined in the MoU are: (a) Financing to support national development transformation; (b) Knowledge sharing and capacity building in areas such as climate change, biodiversity, healthcare, and solid waste management; (c) Publications and bilateral cooperation that highlight the partnership between the two countries.
The MoU represents a strategic bilateral relationship between Indonesia and France in supporting inclusive low-carbon development. PT SMI consistently fulfills its role by engaging in synergy and active collaboration to support the achievement of the SDGs through the SDG Indonesia One (SIO) platform. "PT SMI is very pleased to continue collaborating with AFD, as both institutions share a common vision and goal in the effort to provide clean energy. This agreement is important to strengthen the legitimacy and reputation of PT SMI as a key player in the climate field. We have a variety of innovative platforms and tools to mobilize collaboration in financing environmentally friendly projects, such as SDG Indonesia One and the ETM Country Platform. Thus, we can become the right partner for anyone who wants to contribute and provide benefits in addressing the impacts of climate change," said the President Director of PT SMI, Reynaldi Hermansjah.
PT SMI and AFD have been collaborating on financing infrastructure projects that contribute to climate change mitigation and adaptation since 2015, particularly through the provision of a USD 100 million loan. In 2018, a partnership agreement was signed and an additional credit of USD 150 million was provided under the SIO PT SMI framework. Several projects developed as a result of the collaboration between PT SMI and AFD include the Pekanbaru Drinking Water Supply System in Pekanbaru, Riau, the Madong Mini-Hydro Power Plant in North Toraja, South Sulawesi, and the Ijen Geothermal Power Plant in Banyuwangi, East Java.
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About PT Sarana Multi Infrastruktur (Persero) ("PT SMI")
PT Sarana Multi Infrastruktur (Persero) ("PT SMI"), established on February 26, 2009, is a State-Owned Enterprise under the coordination of the Ministry of Finance, in the form of a Non-Bank Financial Institution (LKBB). PT SMI plays a role and has a mandate as an agent of sustainable development. PT SMI has 3 business pillars, namely Commercial Financing, Public Financing, and Advisory Service and Project Development.
PT SMI has various functions and unique products/features to support the acceleration of infrastructure development, which not only serves as infrastructure financing but also as an enabler through the implementation of the Government and Business Entity Cooperation (KPBU) scheme involving various financial institutions, both private and multilateral. PT SMI actively supports the implementation of Public Private Partnership (PPP) and encourages the acceleration of infrastructure development in the regions through regional loan products.
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