The development finance arm of the European Investment Bank – EIB Global – signed today a memorandum of understanding (MoU) with PT Sarana Multi Infrastruktur (Persero) (PT SMI), an Indonesian state-owned enterprise acting as a catalyst for sustainable development. The memorandum of understanding advances their joint commitment to accelerating sustainable infrastructure development in Indonesia, including to facilitate a sustainable energy shift in the country in line with the Just Energy Transition Partnership (JETP).
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“This is a crucial decade for action on climate change. The EIB’s focus on green and sustainable projects is in line with PT SMI’s priorities. We are delighted by the EIB’s intention to work with PT SMI on this matter. We believe that with the EIB’s support, PT SMI can grow further and continue to become the leader not only in the energy transition sector, but also in the bigger scope of sustainable infrastructure development in Indonesia.” said President Director of PT SMI Edwin Syahruzad.

More specifically, the memorandum of understanding solidifies the commitment of EIB Global and PT SMI to working together more closely, with the goal of finalising a framework loan of up to €500 million that is subject to a suitable range of eligible investments. This credit line, to be intermediated by PT SMI, will target private and public entities involved in sustainable infrastructure sectors, including renewable energy initiatives and climate-focused projects across Indonesia. 

President Director of PT SMI Edwin Syahruzad said: “This is a crucial decade for action on climate change. The EIB’s focus on green and sustainable projects is in line with PT SMI’s priorities. We are delighted by the EIB’s intention to work with PT SMI on this matter. We believe that with the EIB’s support, PT SMI can grow further and continue to become the leader not only in the energy transition sector, but also in the bigger scope of sustainable infrastructure development in Indonesia.”

EIB Vice-President responsible for Bank operations in South-East Asia Robert de Groot said: “Indonesia’s push for sustainable and greener growth is gaining momentum. Working closely with PT SMI, EIB Global is committed to supporting and accelerating Indonesia’s ambitious energy transition. Today’s MoU signing therefore marks a significant step towards achieving this goal, as it brings together our efforts and enables us to accomplish more.”

The European Investment Bank (EIB) is the long-term financing institution of the European Union owned by its Member States. EIB is committed to supporting the Just Energy Transition Partnership (JETP) with Indonesia by providing up to €1 billion in loans. This commitment is subject to agreement on key policy aspects and the identification of a suitable range of eligible investments. 

PT Sarana Multi Infrastruktur (PT SMI) was established in 2009 as an Indonesian state-owned enterprise, 100%-owned and under the direct oversight of the Ministry of Finance of the Republic of Indonesia, and aims to serve as a catalyst for accelerating national infrastructure development in Indonesia. PT SMI supports the fulfilment of its government’s infrastructure development objectives. PT SMI has extensive experience and a proven track record in financing infrastructure project investments across the country, and effectively acts as the infrastructure finance and development arm of the Ministry of Finance.

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