IIF Wins ESG Award 2024 by KEHATI: A Testament of IIF Commitment to Sustainable Infrastructure Financing

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Jakarta, 30 July 2024 – PT Indonesia Infrastructure Finance (“IIF”) has been awarded the Environmental, Social, and Governance (“ESG”) Award 2024 by Yayasan Keanekaragaman Hayati Indonesia (“KEHATI”) in the category of Best Investor/Debt Financing. On behalf of the IIF the award was received by its President Director, Reynaldi Hermansjah.

Reynaldi expressed his gratitude for the support provided by all stakeholders, especially the Board of Commissioners, Shareholders, and business partners of IIF. He noted, “This appreciation is evidence of our commitment to continue promoting sustainable investment and contributing to sustainable development in Indonesia.”

As an investor, IIF remains actively involved in green/sustainability debt investments, offering fund-based products such as long-term loans, non-fund-based products such as guarantees, and other fee-based services related to infrastructure projects.

From 2023 to mid-2024, IIF successfully integrated ESG principles into 69 infrastructure projects across 14 provinces in Indonesia. These projects, most of which are located outside Java Island, focus on renewable energy, energy efficiency, as well as social projects and Environmentally Based Business Activities (KUBL).

With a focus on business strategy, team knowledge and capacity, along with the support from the Board of Commissioners and Shareholders, IIF is committed to generating benefits and becoming a leading contributor to infrastructure financing in Indonesia in the years to come.

The ESG Award by KEHATI is an award given by KEHATI to companies that have demonstrated a high commitment to ESG principles.

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]

Social Media:

·       Instagram: @pt_iif
·      LinkedIn: IndonesiaInfrastructureFinance

 

IIF Records 75.6% Profit Growth in the First Half of 2024

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Jakarta, 30 July 2024 – PT Indonesia Infrastructure Finance (IIF) reported a net profit growth of IDR 67.1 billion in the first half of 2024, reflecting a 75.6% increase year-on-year compared to IDR 38.2 billion in the first half of 2023. This profit achievement was supported by the company’s interest income in the first half of 2024, which rose by 7.5% to IDR 192.8 billion from IDR 179.4 billion in the previous period.

Reynaldi Hermansjah, President Director of IIF, stated that the performance in the first half of 2024 demonstrates the company’s commitment as a catalyst for sustainable infrastructure development in Indonesia by providing innovative financing solutions and advisory services.

In addition to interest income, the company’s fee-based income also grew by 83.7% to IDR 62.7 billion, while advisory service revenue increased by 71.9% to IDR 12.7 billion compared to IDR 7.4 billion in the same period last year.

The company’s investment assets were recorded at IDR 13.1 trillion, with the largest sectors being renewable energy (24% of total investment assets), telecommunications and information (22%), and toll roads (13%). As of June 30, 2024, IIF had booked new commitments totaling IDR 1.6 trillion, diversified across several sectors such as water infrastructure, gas, toll roads, and regional infrastructure. During the same period, IIF received the highest domestic credit rating of idAAA from Pefindo and AAA(idn) from Fitch Ratings. Additionally, it earned a global credit rating of BBB from Fitch Ratings and an ESG rating of 2 from Sustainable Fitch.

Awards Received
In July 2024, IIF received several international awards, including “Innovative Deal of the Year – Indonesia” and “Sustainability Bond of the Year – Indonesia” at the Asian Banking Finance (ABF) Awards 2024. Furthermore, IIF was honored with the “Renewable Energy Deal of The Year” and “Hydro & Water Deal of The Year” at The Asset Triple A Sustainable Infrastructure Awards 2024.At the national level, IIF received the Kehati Awards 2024 for “Best Investor/Debt Financing.” These awards are a testament to IIF’s commitment to supporting sustainable infrastructure development in Indonesia.

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]

Social Media:

·       Instagram: @pt_iif
·      LinkedIn:  IndonesiaInfrastructureFinance

 

Strengthening Infrastructure Financing Scheme, IIF Collaborates with Millennium Challenge Account-Indonesia II

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Jakarta, 26 July 2024 – PT Indonesia Infrastructure Finance (“IIF”) and Millennium Challenge Account-Indonesia II (“MCA- Indonesia II”) have signed a Blended Finance Delivery Mechanism (“BFDM”) Grant Agreement. The agreement was signed by Reynaldi Hermansjah, President Director of IIF, and Maurin Sitorus, Executive Director of Millenium Challenge Account Indonesia II. This collaboration aims to strengthen the long-term infrastructure financing in Indonesia through innovative and sustainable financing schemes.

 

The ceremony was witnessed by Deputy Minister II of the Ministry of Finance of the Republic of Indonesia, Thomas Djiwandono, United States of America Ambassador Designated to Indonesia, Kamala Lakhdir and CEO of Millenium Challenge Corporation, Alice Albright.

 

“This grant demonstrates the Indonesian government’s commitment to building sustainable and environmentally friendly infrastructure in accordance with the sustainable development goals, which include halting climate change and safeguarding the environment” said Thomas Djiwandono, Deputy  Minister II of the Ministry of Finance of the Republic of Indonesia.

 

BFDM itself is an innovation to combine various funding sources, such as commercial loans, grants, and investments, to support sustainable development projects. In addition, the BFDM scheme also helps a project achieve financial close faster and more efficiently to support development projects can be implemented immediately and provide benefits to the community.

 

Specific criteria in the blended finance scheme include the calculation of the Economic Rate of Return (ERR) for each project and the participation of IIF in the form of co-investment. Moreover, in the blended finance mechanism, gender equality and social inclusion are emphasized as key parameters.

 

President Director of IIF, Reynaldi Hermansjah said, “This collaboration between IIF and MCA Indonesia II is an important step in supporting infrastructure development in Indonesia. The BFDM scheme itself will help to mitigate refinancing risks while increasing financial stability for infrastructure project development, thereby encouraging institutional investor participation resulting in strengthening the Indonesian capital market”.

 

MCA-Indonesia II is an entity formed by the Government of Indonesia to implement the

$649 million Indonesian Infrastructure and Finance Compact Program. This compact program is a grant partnership between the Indonesian government and the Millennium Challenge Corporation from the United States which aims to increase access to finance for infrastructure projects and micro, small, and medium enterprises (MSMEs) in Indonesia.

In addition to that, the Executive Director of Millenium Challenge Account Indonesia II, Maurin Sitorus emphasized that “This partnership with IIF increases the support of the compact program for sustainable infrastructure projects,” according to Maurin Sitorus. “Together, we are committed to supporting economic growth in Indonesia through innovative financing schemes.”

The collaboration between IIF and MCA- Indonesia II is expected to provide a significant contribution to sustainable infrastructure development in Indonesia. Through the BFDM scheme, Indonesia will be able to build sustainable and low-risk infrastructure, so that it can ultimately maximize competitiveness and community welfare.

 

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 – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions. 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 506;

E-mail: [email protected]

Social Media: 

• Instagram: @pt_iif 

LinkedIn: IndonesiaInfrastructureFinance