IIF Reaffirms Its Role as a Catalyst for Sustainable Infrastructure Financing

Jakarta, 1 September 2025 – PT Indonesia Infrastructure Finance (IIF) President Director / CEO, Rizki Pribadi Hasan, shared his insights on innovative financing solutions for sustainable infrastructure during a virtual session at the Climate Capital, Risk and Impact Conference 2025 held by Asian Infrastructure Investment Bank (AIIB) in Mumbai. He participated as a panelist in the session “How can public policy banks accelerate finance for transition?” alongside leaders from BNDES (Brazil), NABARD (India), AFD (France) and PT SMI (Indonesia).

The panel, chaired by B.S. Venkatesha, Deputy Managing Director of NaBFID, discussed the critical role of development finance institutions (DFIs) in bridging the vast financing gap required for emerging markets to achieve net-zero transitions.

In his remarks, Rizki emphasized IIF’s unique position as the only Indonesian financial institution exclusively focused on private-sector infrastructure financing. Today, renewable energy accounts for around 22% of IIF’s total portfolio, including hydropower, solar, biomass, and geothermal projects.

IIF has also pioneered innovative financing instruments:

• In 2021, it became the first non-bank institution in Indonesia to issue a Global Sustainable Bond.
• In 2024, IIF issued the country’s first publicly listed green perpetual notes, further expanding green financing options.

Innovative Financing Products
Rizki highlighted IIF’s role in complementing banks and capital markets by offering products that enhance project bankability:

• Cash Deficiency Support Facility – a subordinated loan mechanism that stabilizes project cash flows during the ramp-up phase, providing security to senior lenders.
• Credit Enhancement Facility – a guarantee mechanism that upgrades client bond ratings (e.g., from BBB to A/AA), reducing financing costs and widening investor access.

“These tools are critical for ensuring that infrastructure projects in Indonesia not only achieve financial close but also contribute meaningfully to the country’s climate transition,” said Rizki.

Global Collaboration for Net Zero
Alongside fellow panelists, Rizki underscored the importance of partnerships between DFIs, banks, and capital markets. By leveraging blended finance, adopting ESG standards, and developing frontier instruments such as guarantees and local-currency financing, public policy banks can play a decisive role in mobilizing the trillions of dollars required for emerging markets to meet their net-zero goals.

IIF’s participation in this international forum further reinforces its commitment to becoming a key catalyst in promoting the green transition in Indonesia. By prioritizing innovative financing and strengthening global collaboration, IIF not only provides solutions for infrastructure funding gaps but also makes a tangible contribution to accelerating the achievement of sustainable development goals and net-zero emissions.

Jakarta, 27 August 2025 – Amid global economic uncertainties and national financing challenges, PT Indonesia Infrastructure Finance (IIF) has successfully recorded a series of breakthroughs, reinforcing its position as a key catalyst in advancing sustainable infrastructure financing in Indonesia.

In the first half of 2025, IIF booked a 27% growth in net profit, driven by a 32.3% increase in net interest income to IDR 255.1 billion, along with a successful reduction of interest expenses by 8.3% to IDR 371.1 billion. These achievements strengthened IIF’s net profit margin to 13.0%.

In an interview with CNBC Indonesia on Tuesday, August 26, 2025, Rizki Pribadi Hasan, President Director of IIF, stated, “Infrastructure is a crucial component for a nation in building its welfare and economic growth. Therefore, the opportunities for infrastructure development will always remain open.”

When asked about IIF’s key strengths, Rizki responded, “IIF’s role is not to compete in Indonesia’s financial industry, but rather to serve as a partner. We are the only Non-Bank Financial Institution (NBFI) that focuses solely on infrastructure. While banks can also finance infrastructure, IIF stands as the sole dedicated NBFI. Moreover, since our establishment 15 years ago, we have consistently implemented social and environmental principles in infrastructure projects.”

As a trusted institution that upholds sustainability and good governance, IIF offers a wide range of financing schemes and advisory services to ensure the feasibility and sustainability of infrastructure projects, including:

1. Fund-Based and Non-Fund-Based Financing for both public and private infrastructure projects.
2. Advisory Services: Providing technical and financial assistance to ensure projects are executed effectively, efficiently, and in line with Environmental, Social, and Governance (ESG) standards.

IIF’s focus covers a variety of critical sectors, including electricity, telecommunications, toll roads, water and wastewater, gas infrastructure, airports, seaports, social infrastructure, tourism infrastructure, railways, and public transportation.

One of IIF’s major breakthroughs was the successful issuance of a 10-year long-term bond worth IDR 1 trillion in 2024, making it the only non-bank institution to do so that year. The issuance was oversubscribed by 2.2 times, reflecting strong investor confidence.

IIF’s commitment to delivering innovative financing solutions has also earned international recognition. In 2025, the company received seven prestigious international awards, including five awards from The Asset Triple A Sustainable Infrastructure Awards and two awards from the ABF Corporate & Investment Banking Awards.