A Look at PT SMI's Bond Assets: Which is the Largest?

PT Sarana Multi Infrastruktur (SMI) is a state-owned enterprise (SOE) engaged in infrastructure financing, consulting services, and project development.

Since 2014, this SOE under the Ministry of Finance has issued a number of debt securities in the form of bonds and sukuk.

On the other hand, PT SMI is also actively purchasing asset securities in the form of mutual funds, sukuk, and bonds issued by other parties.

According to its financial statements, at the end of 2022, the total value of PT SMI's asset securities reached Rp8.3 trillion, consisting of government bonds, mutual funds/bonds/sukuk issued by other SOEs/regional-owned enterprises (ROEs), and bonds from various corporations.

In the corporate bond group, PT SMI's largest assets are bonds from Indah Kiat Pulp & Paper (IKPP), Medco Energi Internasional, Merdeka Copper Gold (MDKA), SMART, Protelindo, and Bukopin.

Here are the details of the 10 largest corporate bonds held by PT SMI until the end of 2022:

1. Indah Kiat Pulp & Paper Series B, Second Sustainable Bond, Phase I, 2021: Rp318.6 billion
2. Indah Kiat Pulp & Paper Series B, Second Sustainable Bond, Phase II, 2021: Rp302.8 billion
3. Medco Energi Internasional Series A, Fourth Sustainable Bond, Phase II, 2021: Rp270.9 billion
4. Merdeka Copper Gold, Fourth Sustainable Bond, Phase I, 2022: Rp201.8 billion
5. SMART Series B, Third Sustainable Bond, Phase II, 2021: Rp164.9 billion
6. Merdeka Copper Gold Series B, Third Sustainable Bond, Phase I, 2022: Rp158.2 billion
7. Merdeka Copper Gold Series B, Third Sustainable Bond, Phase II, 2022: Rp156 billion
8. Protelindo Series A, Third Sustainable Bond, Phase I, 2022: Rp143.7 billion
9. Merdeka Copper Gold Series B, Third Sustainable Bond, Phase III, 2022: Rp104.3 billion
10. KB Bukopin Series A, Third Sustainable Bond, Phase I, 2021: Rp80.5 billion

In early June 2023, the Financial Services Authority (OJK) suspected that internal parties at PT SMI had sold their bond assets below market price.

In a letter numbered S-231/NB.21/2023, the OJK mentioned alleged unusual transactions and conflicts of interest, specifically related to the transaction of SMART Series B, Third Sustainable Bond, Phase II, 2021, conducted by PT SMI.

"We hereby request that PT SMI take corrective and follow-up measures," wrote the OJK in the letter.

Responding to the OJK's request, PT SMI's President Director Edwin Syahruzad stated that his company had taken the necessary follow-up actions.

"PT SMI has handled this matter under the intensive supervision of the Company's Board of Commissioners and, in the process, has consulted with the OJK and the Ministry of Finance. This has also been reported intensively to the OJK and the Ministry of Finance," said Edwin, as reported by *MediaIndonesia.com*, Monday (5/6/2023).