SMBC ups investment in Indonesian infrastructure agency

Japan’s second largest bank in assets is putting its money on Indonesian infrastructure projects.

Sumitomo Mitsui Banking Corporation now owns 14.9% of state-owned Indonesia Infrastructure Finance (IIF), the agency whose job is to help accelerate project development throughout Indonesia. SMBC’s investment brings IIF’s capital to US$$200 million from US$160 billion.

IIF intends to finance projects worth US$170 million in five main sectors: power plants, toll roads, telecommunications, ports and drinking water.

SMBC said it would continue to support its clients who focus on Indonesian infrastructure projects through close cooperation with IIF.

IIF President Director and Chief Executive Kartiko Wirjoatmodjo said that with strong support from SMBC’s financial capacity and technical knowhow in project financing “we are confident we can carry out our mission to accelerate infrastructure development in Indonesia.”