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View all search resultsPT SMI’s journey in strengthening Indonesia's sustainable development
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(Courtesy of Sarana Multi Infrastruktur)
T
he need for sustainable infrastructure has gained increasing prominence amid Indonesia’s efforts to accelerate national development in line with the government’s Asta Cita agenda. The challenges of climate change, development disparities and growing demand for a green economy have driven the adoption of new approaches that go beyond physical outputs, ensuring that social and environmental benefits are delivered to communities.
In this context, PT Sarana Multi Infrastruktur (PT SMI) plays a strategic role in bridging development needs with sustainability principles. A special mission vehicle (SMV) of the Finance Ministry, PT SMI serves as an agent for national development across various priority sectors.
As of November 2025, PT SMI has supported projects with a cumulative value of Rp 1.166 quadrillion (US$69.76 billion), reflecting the extensive, long-term scale of its involvement.
However, PT SMI’s commitment goes beyond expanding access to financing. It also ensures that every initiative integrates environmental, social and governance (ESG) principles from the planning stage through to implementation.
PT SMI’s financing approach emphasizes innovative and sustainable financial instruments, including sustainable finance and blended finance schemes through SDG Indonesia One, the country’s first and largest blended finance platform to date. As of November 2025, the platform has mobilized more than $3.17 billion for 114 projects, the majority in the renewable energy sector.
Since 2014, PT SMI has raised more than Rp 45 trillion through bonds, green bonds and sukuk, while also accessing international markets through the issuance of a $300 million global bond in 2021 and a $700 million sustainability-linked loan in 2023. These initiatives underscore the company’s strategy to deliver financing solutions that are both innovative and environmentally responsible.
PT SMI’s sustainability commitment is reflected in its mandates, both national and global. As the country platform manager for the energy transition mechanism (ETM), PT SMI coordinates financing for energy transition initiatives, including the phasedown of coal-fired power plants and the acceleration of clean energy development.
In 2017, PT SMI became the first Southeast Asian entity to obtain accreditation from the Green Climate Fund (GCF), enabling Indonesia to access global climate finance. To ensure impact quality, PT SMI applies 10 environmental and social safeguard (ESS) standards across all debtors, positioning the company among Indonesian financial institutions with the most comprehensive ESG governance frameworks.
Beyond promoting sustainability through its financing portfolio, PT SMI has also reinforced its internal commitment. During its 15th anniversary in 2024, the company officially declared its carbon neutral commitment as part of the ESG policies it applies comprehensively across operational activities and business processes across all business pillars.
PT SMI’s financing and technical assistance for regional development have accelerated the delivery of more inclusive public infrastructures. With overall financing commitments totaling Rp 36.02 trillion, PT SMI supports priority sectors such as water, health care and waste management. The company also finances projects with dual impacts, such as Section II of the Semarang-Demak Toll Road that enhances connectivity while simultaneously serving as a coastal barrier to protect communities from tidal flooding.
The impacts of these initiatives are now evident. PT SMI’s clean energy portfolio contributes to a potential annual reduction of 3.99 million tonnes CO2e (carbon dioxide equivalent) in greenhouse gas (GHG) emissions, equivalent to 1,630 megawatts (MW) of renewable energy capacity and the generation of 4.3 million megawatt-hours (MWh) of clean energy. Low-emission transportation projects, including light rail transit (LRT) and environmentally friendly urban transit systems, have further reduced GHG emissions by more than 72,000 tonnes CO2e annually.
From a social perspective, PT SMI’s financing has generated employment for 10.7 million people and contributed Rp 1.144 quadrillion to the national economy, demonstrating that sustainability not only mitigates risks but also provides economic benefits.
The company’s commitment to governance is further reinforced through the preparation of global-standard sustainability reports, supported by an ESG rating of AA from MSCI and Baa2 (stable) from Moody’s.
This consistency has earned external recognition from the Asia Sustainability Reporting Rating (ASRRAT), which granted PT SMI its highest “Platinum” rating in 2025. This achievement complements other accolades for PT SMI, including the Golden Trophy at the TOP Government, Risk and Compliance (GRC) Awards 2025, the Best Sustainability-Linked Loan 2024 and Indonesia’s Top Green Leaders Award 2024.
Looking ahead, PT SMI will continue to expand green financing, strengthen international collaboration and deliver innovative solutions to accelerate the transition toward a low-carbon economy.
Sustainable development is not merely an agenda but a long-term commitment to securing a more resilient, inclusive and greener future for Indonesia. In this endeavor, PT SMI stands ready to remain at the forefront.
