Hermansjah Calls for More Development Finance Collaboration
The PT SMI executive urged regional institutions to pool resources to address Asia-Pacific infrastructure investment needs.
Updated on Oct. 21, 2026 in Finance — General
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At the 49th ADFIAP Annual Meeting in Colombo held from September 23 to 25, 2026, Reynaldi Hermansjah called for increased collaboration among development finance institutions. The push aims to bridge a massive regional infrastructure funding gap.
Why it matters
The Asian Development Bank estimates that developing Asia requires $1.7 trillion in annual investment through 2030, a figure too large for individual governments to handle alone. Enhanced governance and partnership models are considered essential to securing the necessary capital.
Indonesia requires an estimated $625 billion for infrastructure investment from 2025 through 2029, with government budgets currently covering only 40 percent of those needs. Since 2011, PT SMI has advised on 35 projects totaling approximately $44 billion.
The players
Reynaldi Hermansjah
He is an executive representing PT SMI who advocated for stronger regional coordination at the meeting.
PT SMI
Operating under the Indonesian Ministry of Finance, this institution focuses on infrastructure development and advisory services.
Asian Development Bank
This regional development bank provides financial estimates for infrastructure needs and oversees various development initiatives.
ADFIAP
Established in 1976, this organization serves as a collaborative network for development finance institutions in the Asia-Pacific region.
The details
PT SMI leverages tools such as the Project Development Facility, SDG Indonesia One, and the Energy Transition Mechanism to improve project bankability and attract blended finance. These mechanisms help align institutional support with the immense capital requirements necessary to sustain long-term economic growth in the region.
Timeline
ADFIAP was established in 1976.
PT SMI began advising on projects in 2011.
The 49th ADFIAP Annual Meeting occurred from September 23 to 25, 2026.
Indonesia's infrastructure investment needs period spans 2025 to 2029.
Infrastructure investment estimates for developing Asia run through 2030.
Market Dynamics
This push for collaboration follows the pattern set by the Asian Development Bank's regional infrastructure investment framework. It reflects a shift toward pooled financial models to overcome the limitations of individual state balance sheets.
Increased collaboration among development banks often leads to more standardized project finance structures and higher-quality investment vehicles. Retail and institutional investors may gain improved access to infrastructure-linked assets as these institutions streamline their operations.
The takeaway
Collaboration between development finance institutions is becoming a standard necessity to fill the global infrastructure funding gap. Stakeholders should monitor these partnerships as they indicate where future large-scale projects and capital flows will be concentrated.
Further reading
For more context on how global financial institutions coordinate, read the Finance — General section.
Source note: This article includes information reported by Antara News.
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Should regional development institutions prioritize joint cooperation over independent action to solve large-scale infrastructure challenges?
