IIF’s Anniversary Dialogue: A Revelation of IIF’s Commitment to Sustainable Infrastructure Growth

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Jakarta, 29 January 2024 – Indonesia Infrastructure Finance (IIF) has recently celebrated its 14th anniversary, marking 14 years of commitment to advancing the country’s infrastructure development. Since its establishment, IIF has been mandated to act as a catalyst for infrastructure development in Indonesia through its financing activities.

Throughout these years, IIF has been guided by the principles of Environmental, Social, and Governance (ESG) in its efforts to ensure the sustainability of the surrounding environment and promote the development of sustainable infrastructure projects in Indonesia.

As part of its 14th anniversary celebration, IIF has initiated a dialogue on Monday, 29 January 2024 with the theme “The Dynamics of Sustainable Infrastructure Financing and Its Roles in Achieving Food Security.” The dialogue featured various inspiring and educational speakers from the ESG, environmental, and sustainable development sectors. The event provided in-depth discussions on best practices in sustainable infrastructure financing and efforts to pave the way for food security and climate change mitigation.

The dialogue session was with a keynote speech by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati Indrawati, who emphasized the role of IIF in driving infrastructure growth in Indonesia as a mandate given at its establishment. “As one of the Special Mission Vehicle under the Ministry of Finance, I believe that IIF continues to be a solution provider in infrastructure financing in Indonesia.” she said.

The forum discussion held at the Astor Ball Room St. Regis Hotel Jakarta was divided into two sessions. The first session began with a comprehensive discussion on Sustainable Infrastructure in Achieving Food Security. The participants included Prof. Damayanti Buchori, Ph.D., – Head of Center for Transdisciplinary and Sustainability Sciences at Institut Pertanian Bogor, Euan Marshall – Country Director of International Finance Corporation, Jiro Tominaga – Country Director of Asian Development Bank, and Dr. Muhammad Chatib Basri – Academician and Professor of Economics and Business at Universitas Indonesia.

The second session was equally engaging, focusing on the funding allocated for sustainable infrastructure projects in Indonesia. During this session, the President Director of IIF, Reynaldi Hermansjah, presented on the company’s role in funding infrastructure projects while maintaining ESG aspects in each process. The session was also attended by experts in the field, such as Prof. Dr. Ir. Danang Parikesit, M.Sc.(Eng), IPU, APEC.Eng, – Founder and Senior Researcher at The Center of Transportation and Logistics Studies at Universitas Gadjah Mada, Satoshi Ishihara – Senior Development Specialist at the World Bank, and Aldo Artoko – President Director of Arkora Hydro.

Officially Listed on the Stock Exchange, Indonesia Infrastructure Finance’s 2023 Perpetual Bond Successfully Raises IDR 335 Billion

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Jakarta, 15  January  2024 – PT Indonesia Infrastructure Finance (“IIF”) has successfully issued the Green Perpetual Bond of Indonesia Infrastructure Finance for the year 2023 with an emission value of IDR 335,000,000,000. This issuance has been officially listed on the Indonesia Stock Exchange (“IDX”) as of January 10, 2024. Previously, IIF also successfully recorded the issuance of Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023 amounting to IDR 500,000,000,000 on 27 December 2023.

The listing of these two instruments on the IDX holds particular significance for IIF in terms of alternative funding sources and marks a new achievement for IIF in the Indonesian capital market sector.

In the issuance of Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023, IIF played a catalytic role, evidenced by a substantial retail investor participation reaching nearly 65%, even though this bond was not specifically identified as a retail bond. This reflects IIF’s ongoing efforts to promote the concept of sustainable infrastructure financing.

On another note, the Perpetual Bond issued by IIF in 2024 is a thematic instrument primarily aimed at strengthening IIF’s capital structure. The funds raised will be used to finance sustainable infrastructure projects based on Environmental Business Activity Principles (KUBL) in Indonesia. This Perpetual Bond has no maturity date but includes an option for early redemption of the principal after five years and on each anniversary thereafter.

Furthermore, regarding the issued securities, this instrument represents a breakthrough in the Indonesian capital market as it is the first to utilize a public offering mechanism in Indonesia. It is also the first instrument to implement the regulations outlined in POJK 11/2018 concerning public offerings of debt securities and/or sukuk to professional investors.

Reynaldi Hermansjah, President Director of IIF, stated that the yield rates set are competitive to attract public interest and participation. “The coupon for Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023 is set at 6.45% for a tenor of 370 days; 6.70% for a three-year tenor; and 6.80% for a five-year tenor. Additionally, the yield for the Green Perpetual Bond of Indonesia Infrastructure Finance in 2023 is set at 8.25% per annum, which we consider competitive. This effort aims to engage public participation to support the growth of sustainable infrastructure projects in Indonesia,” Reynaldi stated.

He also expressed that IIF contributes to diversifying investment instruments in the Indonesian capital market. “With the issuance of these two instruments, we are very pleased to participate in enriching investment diversity in the Indonesian capital market, particularly through IDX. This also aims to increase the number of sustainability-based instruments or what are often referred to as Green Instruments,” Reynaldi added.

On another note, Pefindo, an independent rating agency, assigned an idAAA (triple A, stable outlook) rating to Sustainable Bond II of Indonesia Infrastructure Finance Phase I in 2023 and an idAA (double A, stable outlook) rating to the Green Perpetual Bond of Indonesia Infrastructure Finance in 2023—two levels below the corporate rating (idAAA), reflecting the junior position of the Perpetual Bond as it is classified as additional tier one capital with characteristics allowing for deferral of yield payments.As of September 2023, IIF recorded credit disbursement reaching IDR 13 trillion, with renewable energy projects dominating its financing achievements. With a stronger capital structure, IIF will have greater flexibility in expanding its business, especially regarding environmentally conscious infrastructure project financing.

Regarding revenue, by September 2023, IIF’s interest income grew by 15% to IDR 1 trillion year-on-year (yoy), while non-interest income increased by 53% to IDR 83.8 billion (yoy). These achievements contributed to a net profit growth of IIF by 17% to IDR 68.4 billion (yoy) as of September 2023.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (“IIF”) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on 15 January 2010 at the initiative of the Government of the Republic of Indonesia. Currently, the ownership of IIF is held by PT Sarana Multi Infrastruktur/SMI (Persero), Asian Development Bank (ADB), the International Finance Corporation (IFC) which is part of the World Bank, Deutsche Investitions-und Entwicklungsgesellschaft (DEG) which is fully owned by KfW, and Sumitomo Mitsui Banking Corporation (SMBC).

In its operations, IIF applies best practices based on international standards in providing credit, risk management, good corporate governance, and social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia. 

Further Queries:

 Nastantio W. Hadi

Head of Legal and Corporate Secretary Division

PT Indonesia Infrastructure Finance

Telp: (021) 2991 5060;

Fax: (021) 2991 5061;

E-mail: [email protected]

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