DFIs and PT SMI join forces on sustainable infrastructure project in Indonesia
PT Sarana Multi Infrastruktur and the European Union, together with German development bank KfW and Agence Française de Développement are uniting to achieve sustainable development in Indonesia under the SDG Indonesia One Platform.
PT SMI and KfW signed a grant facility agreement amounting to €16 million under the Support for Infrastructure Investments in Indonesia program, funded by the European Union, that aims to promote sustainable investment in municipal development and renewable energy.
This agreement allows PT SMI to assist municipal governments and renewable energy sponsors in project preparation and environmental and social safeguards aspects. KfW will also support PT SMI in the process of becoming Indonesia's Development Financing Institution.
The European Union and AFD also signed a Contribution Agreement for over €5 million, followed by the signing of grant facility agreement between AFD and PT SMI. This agreement will accompany AFD's second green credit line to PT SMI amounting €150 million. This grant will support PT SMI in the form of investment premiums, which aim to stimulate the financing of investments to specific project sponsors with higher financial barriers, and SDG Development Facilities, and will assist PT SMI in project preparation. Green and health infrastructure will be targeted.
