€500 Million Boost for Indonesia’s Green Push: EIB and PT SMI Partner on Sustainable Infrastructure

MoU paves the way for potential framework loan to support renewable energy and climate projects.

The European Investment Bank (EIB) and PT Sarana Multi Infrastruktur (Persero) (PT SMI), an Indonesian state-owned enterprise focused on sustainable development, signed a memorandum of understanding (MoU) recently to accelerate sustainable infrastructure projects in Indonesia. This collaboration aims to support the country’s transition towards a greener future, aligning with the Just Energy Transition Partnership (JETP).

The MoU paves the way for a potential €500 million framework loan, subject to approval, which PT SMI would manage. This credit line would target private and public entities working on sustainable infrastructure projects, including renewable energy initiatives and climate-focused initiatives across Indonesia.

“This is a critical decade for climate action,” said PT SMI President Director Edwin Syahruzad. “The EIB’s commitment to green and sustainable projects aligns perfectly with PT SMI’s priorities. We are thrilled to work with them on this important endeavor and believe their support will further solidify our position as a leader in both the energy transition and broader sustainable infrastructure development in Indonesia.”

EIB Vice-President responsible for Southeast Asia, Robert de Groot, emphasized the growing momentum behind Indonesia’s push for sustainable growth. “EIB Global is firmly committed to supporting and accelerating Indonesia’s ambitious energy transition by working closely with PT SMI,” he stated. “Today’s MoU signing signifies a significant step towards this goal, allowing us to combine our efforts and achieve greater impact.”

The European Union’s commitment to fostering sustainable investments in Indonesia was further highlighted by EU Ambassador to Indonesia, Denis Chaibi. “This MoU exemplifies the EU’s efforts to promote sustainable investments in Indonesia,” he said. “It also underscores our unwavering dedication to fulfilling our JETP pledges, which necessitate collaborative efforts to develop an energy infrastructure project pipeline and mobilize funding. The proposed framework loan will be a crucial contribution to Team Europe’s support for Indonesia’s energy transition.”

This partnership between EIB and PT SMI demonstrates a shared commitment to propelling Indonesia’s sustainable development and contributing to a greener future for the country.