Regional economic recovery

To help provide financing alternative to SNGs, PT SMI has prepared a program called the “Regional Economic Recovery Program.” It is a long-term, low interest loan made possible thanks to blended finance coming from donor, national budget, and PT SMI’s own resources amounting to USD 357.14 million. It is a long-term, low interest loan provided by PT SMI which utilizes blended finance mechanism to provide financing alternative to sub-national governments to increase their fiscal capacity in conducting “countercyclical” policy, especially to fund immediate infrastructure needs during and post-COVID19. The affected SNGs may use the loan to fund sectors such as water and sanitation, low-income housing, environmental infrastructure (i.e solid waste management, drainage/sewer system), logistic and transportation infrastructure (i.e. local road improvement), and social infrastructure.