SMI highlights financing role in green industrial park transformation

By Romel S. Gurky

State infrastructure financier PT Sarana Multi Infrastruktur (Persero) (SMI) has reaffirmed its commitment to support the transformation of industrial estates into eco and green industrial parks through a range of financing and advisory instruments.

The company said its support includes conventional loans, sharia compliant financing, advisory services and project development for public private partnership schemes, enabling industrial park developers and tenants to access tailored funding solutions.

SMI also promotes sustainability oriented financing such as green loans, sustainability linked loans and assistance for green bond issuance to align industrial investments with environmental performance and climate targets.

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The financing can be combined with technical assistance under the SDG Indonesia One blended finance platform to improve project readiness, reduce risks and mobilise private capital for low carbon industrial development.

The commitment was highlighted during a workshop on improving access to finance for eco industrial park development, which brought together representatives from financial regulators, investment authorities and development partners.

SMI said the initiative supports Indonesia’s climate goals under its Nationally Determined Contribution, where industrial sector decarbonisation and resource efficiency are seen as key to sustaining economic growth and competitiveness.

Editing by Alexander Ginting