Indonesia’s infrastructure financing company, PT Sarana Multi Infrastruktur (Persero), collaborates with Caisse des Dépôts and Agence Française de Développement (AFD) to share international best practices in development finance during visit to France.

The benchmarking visit was attended by 14 key representatives from PT SMI and the Ministry of Finance, including top and middle management involved in climate finance, ESG initiatives, sustainable finance, renewable energy, and public sector project funding.

“AFD Group is very glad to collaborate with Caisse des Dépôts and the EU to support PT SMI in its transformation into a full-fledged development finance institution (DFI). We hope this benchmarking visit showcases examples of European, and especially French DFI models,” said Yann Martres, Director of AFD in Indonesia.

The main purpose of the visit was to support PT SMI’s ongoing transformation into an Indonesian Development Financing Institution, aligning with the Government of Indonesia's strategic objectives. This collaboration signifies a strategic partnership focused on advancing infrastructure development, sustainable finance, and climate action in Indonesia.

Key areas of focus during the visit included DFI operations, Environmental, Social, and Governance (ESG) standards, and municipal financing, notably through the experience of the “Banque des Territoires,” one of the business lines of Caisse des Dépôts, which supports regions and their stakeholders. PT SMI engaged with the AFD Group and Caisse des Dépôts to explore sustainability finance strategies, innovative financial products addressing climate change, risk mitigation frameworks, and the relationship between the government and national DFIs.

"We are excited about the opportunities presented by our benchmarking visit to AFD, Caisse des Dépôts, and İller Bankası A.Ş. These engagements will not only enhance our institutional capabilities but also pave the way for transformative partnerships in sustainable development and infrastructure financing," said Mr. Faaris Pranawa, Director of Public Financing and Project Development at PT SMI.

As part of this initiative, PT SMI visited the city of Chartres, specifically the Pôle Gare (the development of the new district around the station) and the Colisée (the city’s cultural and sports complex), which were financed up to 46 million euros by the “Banque des Territoires”. It was an opportunity to meet elected officials and discuss the financing operations of the regional management center-Val-de-Loire of the “Banque des Territoires”.

Additionally, PT SMI travelled to Brussels to  discuss with EU experts how to use financial tools in the context of a green transition. The discussions centered on financial instruments such as green bonds and methods for raising funds through carbon pricing and carbon markets. EU Ambassador to Indonesia, H.E. Denis Chaibi, commented, “The fight against climate change is something that unites closely all EU Member States – they work in a ‘Team Europe’ approach to engage with global partners such as Indonesia how to work together in the most effective way. The SDG Indonesia One, a key Team Europe cooperation programme with Indonesia under the Global Gateway initiative, focuses on how to attract and develop infrastructure investments that contribute to Indonesia’s sustainability.”

Following the trip to France and Belgium, PT SMI visited Türkiye to exchange with the teams of İller Bankası A.Ş. During this visit, the discussions focused on municipal financing models, with the bank sharing valuable experience that could be replicated in the Indonesian context. 

 

Contact: AFD Indonesia (afdjakarta@afd.fr)