The commitment comprises financing for several new and renewable energy technologies such as hydro, solar, wind, biomass, and geothermal, he informed during the ‘Sustainable Finance: Instruments and Management in Achieving Sustainable Development in Indonesia’ webinar.
As a company mandated by the government to handle this issue, PT SMI is fully supporting the government's sustainable development efforts by expediting sustainable national development programs in various sectors through sustainable finance products.
SMI has outlined its annual sustainable financing target in its sustainable finance action plan in accordance with the environmental, social, and government (ESG) principle, as required by the Financial Services Authority (OJK).
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SMI is also mobilizing financial support through multilateral facilities or capital market instruments, such as green bonds and SDG Indonesia One (SIO), a blended finance platform.
On the SIO platform, the company has managed to gather US$3.3 billion from donors, philanthropists, and bilateral or multilateral finance institutions, Syahruzad informed.
The funds are being channeled to environmental-based projects such as in the renewable energy sector, he added.
In the near future, PT SMI will introduce an Energy Transition Mechanism platform that will focus on financing greener new and renewable energy transition projects.
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PT SMI is choosing to take actions that support the energy transition phase through financing to enable the acceleration of the energy transition, he remarked.
During the event, Finance Minister Sri Mulyani Indrawati said that the Indonesian government is committed to handling crises caused by climate change.
This is not just to adjust to other countries' regulations, but to protect the people from the threat of climate change, she added.
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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Fardah Assegaf
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