Funds could be borrowed from SMI to develop regions: Jokowi

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) has provided an alternative financing, through PT Sarana Multi Infrastructure (SMI), for regions that wish to build regional infrastructure.

"In terms of financing, if there are regions that want to build a hospital and a market, they can borrow money from (state-owned infrastructure development funding company) PT SMI, a multi Infrastructure development funding company," Jokowi stated at the State Palace in Jakarta on Tuesday.

Jokowi conveyed this message at the event "The President of the Republic of Indonesias Direction to Governors, District Heads and Mayors of All Indonesia," attended by Vice President Jusuf Kalla and the ministers of the working cabinet.

"The names Sri Mulyani Indrawati' and Sarana Multi Infrastruktur sound similar, both are really long, and both have initials SMI," he added.

The presidents statement invited the laughter of regional heads as well as Indrawati, who also attended the event.

If you want to borrow from PT SMI, then the interest charged is about 6.9 percent. The heads of regions simultaneously chanted "wow" on hearing the rate of interest.

"If you borrow from the banks, how much is the interest rate? But this (plan to borrow) should also be noted first in the field. The business plan and what the project looks like should also be monitored," the president revealed.

He also assured that the loan, through the company, can be paid in installments through the regional budget (APBD).

"This is an alternative financing, if you do not know it yet. Installment can be paid annually through the APBD," he pointed out.

Source: ANTARA News

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