Jakarta, INTI - PT Sarana Multi Infrastruktur (Persero), or PT SMI, signed two grant agreements and two memoranda of understanding (MoUs) with international development partners to strengthen sustainable financing and support the energy transition in Indonesia. This collaboration is part of the company’s strategy to expand blended finance initiatives, mobilize private capital, and enhance cross-sector collaboration to drive climate-friendly, inclusive, and sustainable infrastructure development.
PT SMI President Director Reynaldi Hermansjah stated that the collaboration is aimed at helping achieve national climate targets while ensuring a just transition toward a green economy. “By leveraging expertise and resources collectively, we strive to support Indonesia’s climate targets while ensuring that the transition to a green economy occurs fairly and equitably,” Reynaldi said in an official statement on Thursday, February 5, 2026.
Grants from German and French Development Banks
Under this cooperation, PT SMI signed two grant agreements. The first is the Green Bond Development Facility with the German development bank, KfW Development Bank, which is intended to accelerate the development of the green and sustainable bond market in Indonesia.
This facility is supported by the German Government with a grant of up to €7.82 million, or around IDR 154 billion. The funds will be used to strengthen technical capacity and the implementation of environmental, social, and governance (ESG) principles for bond issuers, while also encouraging increased private sector participation in investments aligned with the climate agenda.
The second agreement is an extension of the grant with the French development bank, Agence Française de Développement (AFD), under the Technical Assistance Program. This extension aims to optimize the utilization of remaining grant funds, support the continuation of the Project Preparation Facility, and strengthen the implementation of technical assistance activities.
“The extension of this agreement reflects the ongoing commitment of PT SMI and AFD to strengthen the sustainable financing ecosystem in Indonesia and to promote the development of green and inclusive infrastructure,” he said.
Expanding Strategic Partnerships
In addition to the grants, PT SMI also signed two MoUs through the SDG Indonesia One (SIO) platform and the Energy Transition Mechanism (ETM) Country Platform Manager to expand strategic partnerships.
The first collaboration was conducted with the Global Green Growth Institute (GGGI), focusing on efforts to promote green economic growth.
The second MoU with the Japan International Cooperation Agency (JICA) covers collaboration in energy transition, project development, waste management, and sustainable development in Indonesia.
Conclusion
Through these grants and strategic partnerships, PT SMI is reinforcing Indonesia’s sustainable financing ecosystem, promoting private sector engagement, and advancing the nation’s transition toward a green, inclusive, and climate-resilient economy.
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