Indonesia: SMI to facilitate financial institution funds for infrastructure project

Photo: Reuters

PT Sarana Multi Infrastruktur (SMI), an infrastructure financing company owned by the government, will help raise funds from pension funds, as well as insurance and social security funds.

According to the Finance Minister Bambang Brodjonegoro, who spoke about this on the sideline of an event, SMI could raise funds close to  Rp40 trillion from the local financial institution firms.

Also Read : Indonesia: SMI to double infrastructure funding to $1.6b in 2016

Government is targeting a financing of  infrastructure projects of Rp313 trillion ($23.72 billion) in the 2016 State Budget

“SMI as a facilitator can do debt financing and equity financing using those funds directly for the project,” he said.

SMI has already helped with financing of the Trans Sumatera Toll Road Projects, Umbulan Water Treatment, Riau Tenayan Power Plant Project, Cikopo – Palimanan Toll Road Project, and state owned airport operator PT Angkasa Pura II projects.

The company is set to become the future Indonesia Development Bank (LPPI) starting 2017 after it gets approval from House of representative, to merge with the other state firm Perusahaan Investasi Pemerintah (PIP) in January.

Beside collecting funds from local financial institution, Finance Ministry joined with Financial Services Agency (OJK) and Bank Indonesia (BI) set up Forum Coordinating of Financing Development through Financial Markets (FK-PPK).

According to BI’s governor Agus Martowardojo, through the forum coordination, the three parties could create market deepening and add more liquidity to the financial market.

“We encourage investment managers to use infrastructure projects as underlying asset for limited mutual funds as an instrument for raising funds on the infrastructure projects,said Chairman of OJK Muliaman Hadad

Indonesia needs investment with worth Rp 5,519 trillion until 2019 to develop infrastructure projects by government and private company.

Also Read: Indonesia state firms to invest $24.96b in infrastructure projects in 2016

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.