State financial firm, PT Sarana Multi Infrastruktur (SMI) is exploring a syndicated loans up to US$500 million to support infrastructure financing activities, said the director as quoted by Investor. The party has mandated the arrangers and book-runners for the program namely Bank of China, CTBC Bank, MUFG Bank, Standard Chartered Bank, and UOB.

According to Mohammad Ghozie Indra Dalel, the loan will have a tenor of three years. He estimates that the loan process can be completed in July. The funds will channeling to provincial government and other infrastructure projects.

Last year, the SMI has provided funding to 24 local governments worth of Rp4.61 trillion for the construction of regional hospitals and roads to bridges. Of this amount as much as Rp4 trillion has been withdrawn by the regional government.