PT SMI is the Special Mission Vehicle (SMV) under the ministry that is involved in financing and preparing infrastructure projects.
"PT SMI will play a strategic role in the formulation of infrastructure provision financing innovation toward the IKN Authority," President Director of PT SMI Edwin Syahruzad noted through a statement, Monday.
The government's trust on PT SMI is an affirmation toward PT SMI's performance in undertaking various mandates for the preparation of 20 infrastructure projects from various sectors.
These include hospitals, hazardous and toxic waste management, broadband access, transportation, and Drinking Water Provision System (SPAM).
In addition to IKN, the government has appointed PT SMI as the Country Platform Manager to manage the energy transition mechanism financing in Indonesia during the 2022 Indonesia G20 Presidency in Bali, he noted.
This trust is a form of the ministry's appreciation over the achievement of the SDG Indonesia One platform that PT SMI has managed since 2018.
The SDG Indonesia One is a mixed finance platform to fund climate change adaptation and mitigation projects.
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Syahruzad opined that PT SMI has thus far managed to improve Indonesia's reputation in the eyes of the world through its role as Energy Transition Mechanism (ETM) Country Platform Manager.
To this end, PT SMI needs to ambitiously and aggressively conduct a follow up on various support given to Indonesia within the energy transition agenda.
Until February 2023, PT SMI had worked with 17 partner institutions to formulate energy transition financing and investment strategies through existing forms of support.
These forms of support come in the form of commercial fund and non-commercial sources, such as donation and technical aid.
Institutions that became PT SMI's partners in its role as ETM Country Platform Manager comprise multilateral and bilateral institutions, banks, philanthropists, and think tanks.
In formulating energy transition financing and investment schemes in Indonesia, environmental and social aspects are priorities.
PT SMI, along with the Asia Development Bank (ADB), have formulated the Strategic Environmental and Social Assessment.
This assessment will encompass an audit, risk identification, and risk mitigation plan preparation from environmental and social aspects as the basis for the energy transition scenario recommendation.
"This assessment is undertaken to achieve the energy transition goal in Indonesia in a just and affordable manner," Syahruzad explained.
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Translator: Agatha Olivia V, Fadhli Ruhman
Editor: Yuni Arisandy Sinaga
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