#1Presentation Material Public-Private Solution Sandbox: SDG INDONESIA ONE- Blended Finance Platform Fakhrul Aufa Team Leader Business Development and Strategic Partnership PT SMI (Persero) - Indonesia AVPN Virtual Conference 2020 Jakarta June 2020 Love A leading catalyst in the acceleration on the national infrastructure development CATALYST SMI SMI SDG Indonesia One SMI PTSANAMUL INFRASTRUCTUR(S) Rp m SME#2What is PT SMI's Key Value Proposition? National Strategic Partner in channeling grant, soft loans, technical assistance, and capacity building Unique Municipal Financing Product to Support Regional Development VSMI Proven Track Record as Financial Institution Creating Innovative Product to Close The Gap VSMI PT SARANA MULTI INFRASTRUKTUR (PERSERO) Providing End to End solution by having 3 Business Pillars to support SDG & Climate Resilience Trustworthy Institution with Strong Support From The Government & International Strategic Partners (Donor, Philanthropist, Climate Fund, Development Bank, Institutional Investor) PT Sarana Multi Infrastruktur (Persero) | 2#3VSMI MULTIINA MTUR (PRE Development Partner Become a development partner that strengthens the capacity and capability of government stakeholders Vision of PT SMI to become "The Lead Catalyst for Acceleration of National Infrastructure Development" Market Maker Participate in filling the financing gap development sector and create a crowding in effect WIDESPREAD ECONOMIC GROWTH Ecosystem Enabler Strengthening the ecosystem of development financing supported by policies and regulations and industry knowledge Market Maker Development Partner LEAD CATALYST FOR ACCELERATION OF NATIONAL INFRASTRUCTURE DEVELOPMENT Ecosystem Enabler VABLE QUALITY OF LIFE Sustainability Promoter Regulatory & Policy Enabler MPROVED SOCIA Sustainable Development Promoter Support the creation of sustainable development PT Sarana Multi Infrastruktur (Persero) | 3#4Blended Finance and SDG Indonesia One: Transforming Needs into Opportunities VSMI PRAHA MULTINAT Blended finance is "the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries" (OECD)* Public 1 tackle sustainability 2 Mobilize private investments to issues (poverty, climate change, infrastructure, etc.) Increase access of financial resources to finance development Reducing fiscal burden to support 3 SDG related projects Private/Donor/Philanthropist Gain access to rapidly 1 growing markets in Indonesia Mitigate exposures and accelerate implementation by engaging PT SMI as a local strategic partner 2 SMI SDG Indonesia One Take advantage of the risk mitigation 3 4 measures offered by blended finance Leverage financing capacity and the socio-economic outcome Creating Leverage Integrated Platform Maximizing Impact Mitigates Risk *Source: OECD Principle of Blended Finance PT Sarana Multi Infrastruktur (Persero) | 4#5SDG Indonesia One Provides End-to-End Financing Support to Project Development Donor (Philanthropist) Donor, Impact/Climate and Impact/Climate Funds Funds and Development Banks Commercial Banks and Institutional Investors VSMI PINAKANA MULT MAI KURTUUR (PURNARED Institutional Investor and Developer Product Contributions Investor Contributions: Grant, Technical Assistance Objective: Pre-construction project development support Contributions: Concessional Loan, Grant Objective: Project de-risking (improving bankability) Contributions: Loan, Bond, Sukuk Objective: Construction / post- construction finance Contributions: Equity Objective: Investment in high impact/ new frontier SDG sector SDG Development Facilities Grant (Project Preparation, Technical Assistance, Research) SDG Indonesia One (Managed by PT SMI) SDG De-Risking Facilities Concessional Loan, First- Loss Facility, Interest Subsidy, Guarantee Premium Subsidy, VGF etc. SDG Financing Facilities Senior Loan, Subordinated Loan SDG Equity Fund Equity, Equity-Linked Investment SDG Projects PT Sarana Multi Infrastruktur (Persero) | 5#6SDG Indonesia One Highlight As of June 2020 SMI MULTI INFART() SDG Indonesia One Commitment $ USD 32 partners 3.03 Billion SDG Indonesia One Commitment Based on sector and no of program Multisectors 3 Green 1 Water Health Social Infrastructure 0% 10 8 20% 40% 1 1 2 Equity De-risking Financing Grant Multifacilities SDG Indonesia One Achievements Activities SDG Center 8 1 with University = 3 1 1 1 60% 80% 100% Technical Assistance Potential Project ifi SDG Indonesia One Impacts (4) Renewable Energy 13ATION CURATE 12 COMPTON AND PROACTOR Activities with SIO Partners = 10 Study of 5 MWp dan 7.48 MW for the enew able energy power plants with the potential saving of +1.5 M / year; Emissions reduction potential +5.867 tCO2e p/ year Waste management QUALITY EDUCATER SCHOOL Perumahan Um um 11 Rehabilitation and Reconstruction Program after Natural Disaster In Central Sulawsi RIDF Financing for RSUD & RSK Mata North Sulawesi RIDF Financing for Traditional Market Banjar Baru City Developing Project Concept Solar PV Rooftop in West Java Technical Assistance FS PJU ("public street lighting") Project Bengkulu 6 Technical Assistance FS W-t-E Plant Putri Cempo Solo CITES 101 temporary shelters & 218 permananet shelters for 1.430 families GOOD HEALTH 3 CLEARWATER potential ±365.000 ton/year 2.000 families get access to clean water Education 4 schools with 31 classes for 716 students Social Infrastructures (5.780 people) 550 beds and total area of hospital +47.535 m2 An increase in market area 15.400 m2 11 and 172 kiosk; 1 worship place *) Based on USD currency exchange as June 2020 PT Sarana Multi Infrastruktur (Persero) | 6#7Example of SDG Indonesia One (Development Facilities): Reconstruction and Rehabilitation in Vulnerable Communities and Disaster Areas: Palu, Sigi and Donggala, Central Sulawesi Province Structure and Cooperation Scheme Government Budget KEMENTERIAN KEUANGAN REPUBLIK INDONESIA KEMENTERIAN KESEHATAN REPUBLIK INDONESIA Donor/Philanthropist Cooperation SDG Indonesia One Agreement Clean Water Treatment Plant VSMI PT SARANA MULTI INFRASTRUKTUR (PERSERO) Mosque Reconstruction Masjid Babul Khairaat MTs Alkhairaat Baluase Special Allocation Fund Expenditures for medical devices Anutapura Palu City VSMI PT SARANA BULTI INFRASTRUKTUR (PERSERO) Project Public Hospital Reconstruction City of Palu CH CK HUTCHISON LI KA SHING FOUNDATION 李嘉誠基金會 Construction of Temporary Settlement Social Infrastructure Reconstruction ACT PEMBANGUNAN SEKOLAH PERMANEN SMI PESARANA MULTI INFOAD MEKTUP School Reconstruction Housing MA Alkhairaat Batusuyu Go'o-SD Alkhairaat (Temporary Shelters & GOODHEALTH AND WELL-BEING QUALITY EDUCATION CLEAN WATER 6 AND SANITATION Tondo - MTs Nurul Khasanah Pengawu SUSTAINABLE CITIES AND COMMUNITIES A Permanent Housing) Impacts Providing 100 Patient Beds, Eye Polyclinic Device (Autorefractometer), Dental Unit, Air Conditioners, Genset and Electrical Network, as well as other supporting devices for Anutapura Public Hospital Providing reconstruction of 4 schools with 31 classes for 716 students Providing clear water with the capacity of 10liters/second for serving 2,000 household. • Providing 101 temporary settlement for 1,212 households or ±4,608 people and 300 university students Providing 218 permanent housing for ±872people Installation of clean water treatment plant Facilities for Anutapura Local Hospital Combination of Government and Private Funds with the Blended Finance Scheme can be used for Infrastructure Development in Disaster Areas 7#8VSMI Example of SDG Indonesia One (Development Facilities): Project Screening Tools for Renewable Energy Power Plant Projects Collaborative Structure and Schemes Activities Required for Project Screening Tools * t.... SDG Indonesia One Cost Sharing Development Bank Climate Fund Donor SDG Indonesia One Platform Loan Lenders UN DP UNDP Defining Project Screening Tool Basic Criteria • Setting basic criteria/1st stage requirement to be used as preliminary/selection tools to screen project proposal received by UNDP • Setting standard project parties, documentation and bankable terms and conditions Standard Documentation Technical Assistance for Project Screening Tools (Role of Advisory team of PT SMI) FGD 7 Renewable Energy Power Plants Evaluation • One on One Meeting and/or FGD to finalize the basic criteria, Standard Project Parties, Documentation and Bankable Term & Conditions. • Select and evaluate submitted documents from project sponsor based on basic criteria in Preparation stage. AFFORDABLE AND CLEAN ENERGY 9 INDUSTRY. INNOVATION CLIMATE ACTION 17 PARTNERSHIPS FOR THE GOALS Finalization • Perform additional analysis such as stakeholder discussion, additional support required, etc. in accordance with bankability criteria stated by potential lenders. Provide the Bankable Projects of Renewables Energy that is ready to be Financed by Lenders 8#9Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera Confederaziun svizra BECENT WORK AND ECONOMIC DRONTIC 9 10 REDINCED INEQUALITIES 11 12 SPONGE CONSUNITION 13 OLIMATE ACTION AIIB THE WORLD BANK IBRD IDA WORLD BANK GROUP 14 LIFE BELOW WATER 15AND 16 PEACE JUSTICE AND STRONG INSTRUTIONS VSMI 17 PARTNERSHIPS FOR THE GOALS Example of SDG Indonesia One (Development Facilities): Regional Infrastructure Development Fund: Hospital Project 1 3 2 GOOD HEALTH AND WELL-BEING POVERTY QUALITY EDUCATION BENDER EQUALITY 6 AIIB THE WORLD BANK IBRD IDA WORLD BANK GROUP Loan USD 100 million Loan USD 100 million Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera. Confederaziun svizra Grant USD 3 million Two-Step-Loan USD 200 million SMI PT SARANA MULTI INFRASTRUKTUR (PERSERO) Technical Assistance Municipal Loan Municipal Government North Sulawesi Regional Hospital (Type B) Eye Center Hospital North Sulawesi RUMAH SAKIT MATA PROVINSI SULAIMER B IDR 2,918,498,000 using SECO grant to construct DED & Role Project Preparation Financing Project preparation & financing IDR 3,164,840,000 using SECO grant to construct DED & environmental documents Commitment: IDR 300 billion Tenor 5 years Role Project preparation & financing Project Preparation Financing Benefits • • Interest rate: 9.4 % per annum Improving the services, health facilities and infrastructures in North Sulawesi Province Supporting the provision of tiered- health services and referrals since North Sulawesi province has not got an adequate and easily- accessible provincial referral hospital (type B). Benefits environmental documents Commitment: IDR 100 billion Tenor 5 years Interest rate: 8.53 % per annum • Improving the quality of eye- health services to the community Reducing the prevalence of high blindness in North Sulawesi#10Future Projects: Geothermal Resouces Risk Mitigation (GREM) VSMi PT ATLETRUKTUR PRABTR) THE WORLD BANK IBRD-IDA GREEN CUMATE FUND CTF -C Public Window SOES GREM Geothermal Resource Risk Mitigation 50% De-risking Government Fund 50% Blended Loan IBRD/GCF/CTF 50% Blended Loan IBRD/GCF/CTF Private Window Private Sectors VSMI PANAMULTITU 50% Financial Instrument Reimbursable Grant GCF/CTF The Geothermal Resource Risk Mitigation ("GREM") was developed by the World Bank and the Government of Indonesia through PT Sarana Multi Infrastruktur (Persero). GREM is a geothermal exploration financing facility for SOE and private developers that offers a de-risking scheme for resource risk. PT Sarana Multi Infrastruktur (Persero) | 10#11SDG Indonesia One SMI PISARANAMUL INFRASTRUCTURE) SMI Thank you, PT Sarana Multi Infrastruktur (Persero) Sahid Sudirman Center, 48th Floor Jl. Jenderal Sudirman No. 86 Jakarta 10220, Indonesia Phone : (62-21) 8082 5288 (hunting) : (62-21) 8082 5258 : [email protected] Fax Email www ptsmi.co.id infralib infralib.ptsmi.co.id @ptsmi Optsmi_id PT Sarana Multi Infrastruktur (Persero) A leading catalyst in the acceleration on the national infrastructure development