SMI extends Rp70 bln loan to Trenggalek for infrastructure projects

State-owned infrastructure financier PT Sarana Multi Infrastruktur (Persero) (SMI) said it has provided a Rp70 billion regional loan to the Trenggalek Regency administration in East Java to support strategic infrastructure development.

The financing agreement was signed on Thursday by SMI’s director of public financing and project development, Faaris Pranawa, and Trenggalek Regent Mochamad Nur Arifin.

The funding will focus on improving regional connectivity, including upgrades to 11 district roads, as well as supporting tourism and urban development projects in Trenggalek.

SMI said the infrastructure improvements are expected to enhance the flow of goods and services and support local economic growth.

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Tourism development alone is projected to generate economic activity of up to Rp11.36 billion annually, increase regional revenue by 1.9% to 3.1%, and create up to 280 jobs.

The loan marks a continuation of SMI’s support for Trenggalek, following its involvement in multisector development projects under the government’s regional economic development program in 2021.

In addition to the loan, SMI is also providing corporate social and environmental responsibility (TJSL) support for the development of Dr. Soedomo regional hospital and grants for studies on waste management.

Editing by Reiner Simanjuntak