Provincial Government Loan from PT SMI Persero Funds Riau Islands Project

Basuki Rahmat Flyover, project funded by PT SMI loan

batampos-PT Sarana Multi Infrastruktur (SMI) Persero agreed to finance the strategic development of the Riau Islands Provincial Government for the 2022 fiscal year. However, the company did not fully help, in line with the expectations of the Riau Islands Provincial Government.
The Riau Islands Provincial Government through the Riau Islands Governor Ansar Ahmad has signed a loan agreement with PT SMI Persero, Wednesday (31/8) in Jakarta. In the agreement, the company only provides bailout funds for the development of the Riau Islands strategic project of Rp. 162,087,178,360.

“We applied for a loan of Rp 180 billion. However, the financing approved by PT SMI Persero is IDR 162 billion,” said Head of the Riau Islands Province Financial and Asset Management Agency, Venni Meitaria Detiawati, last Thursday (1/9).
The former Secretary of the Regional Development Planning Agency (Bappeda) of Riau Islands Province explained that the loan was intended to finance seven strategic projects of the Riau Islands Provincial Government this year (see table, red). The loan interest rate is 6.56 percent.

Also READ: The Disbursement of the Riau Islands Provincial Government Loan of Rp180 billion from PT SMI is still hampered

“The loan repayment scheme uses a combination of Regional Original Income (PAD) and General Allocation Funds (DAU),” he explained.

Recently the Governor of Riau Islands Ansar Ahmad said that the funding system paid or issued by PT. SMI Persero in accordance with the progress of work in the field. Looking at the current conditions, the Governor believes that the loan will not reach Rp. 180 billion.

“We will pay every fiscal year. The maximum loan interest is around 5.5 percent,” he said

The governor added that the activities financed through the loan budget (debt, ed) are already running. He hopes that the development process can run well and be completed according to the target.

“We believe that the completion of this strategic development will gradually change the face of the capital city of Riau Islands Province, Tanjungpinang,” concluded the Governor. (*)

List of Projects Funded by PT SMI Persero

Project Name

Ramayana Simpang Flyover       Rp.

Construction of RHF Airport Road      Rp 40 Billion                   Rp 33,765 Billion

Tanjungpinang Ring Road                                            5 – US – 1 – 1 » Rp » »

Strengthening Capital Area Roads  Rp 5 Billion                  Rp 5 Billion

Restructuring the Old Town Area        IDR 10 Billion                                    Rp. 10 Billion

The Karimun Workshop Building         Rp 10 Billion                Rp 10 Billion

Plantar 1 and 2 Integration          Rp 40 Billion            Rp 40 Billion

Amount of IDR 180 Billion IDR 162 Billion

Reporter: Jailani