Project Profile IsDB IDN - 1031

Project Snapshot

Overview

Since 2017, the Islamic Development Bank (IsDB) has partnered with Indonesia’s Ministry of Health to design a project addressing a persistent gap: national referral hospitals in Indonesia have fewer beds per capita than comparable Asian countries, alongside pronounced shortfalls in maternal and child health, cancer care, and chronic respiratory disease services. Of the country’s 14 designated National Referral Hospitals, this project upgrades six of them and is intended as a scalable model for future expansion to the remaining hospitals.

Project Development Objective (PDO)

The PDO is to improve the availability, accessibility, quality, and delivery of health services by upgrading six National Referral Hospitals and Vertical Technical Units, with a particular focus on mother and child healthcare. Targeted outcomes through 2030 include a 30% increase in maternal and 27% increase in child outpatient services, higher inpatient and intensive-care coverage for mothers and children, a 22% reduction in maternal mortality, a 14% reduction in neonatal mortality, a 10% reduction in under-five mortality, and an increase in the five-year cancer survival rate from 56% to 66%.

Project Locations

The six participating hospitals serve roughly 2.4 million patients a year and benefit a combined population of about 77.7 million people across five provinces:

• Dharmais Cancer National General Hospital — Jakarta
• Persahabatan Hospital — Jakarta
• Hasan Sadikin Hospital — Bandung, West Java
• Sardjito Hospital — Yogyakarta
• Sanglah Hospital — Bali
• Wahidin Sudirohusodo Hospital — South Sulawesi

Components

• Component A — Civil Works: construction of approximately 231,000 m² of new hospital facilities and 952 additional beds, including maternal and child health units, laboratories, ICUs, isolation rooms, and R&D facilities.
• Component B — Hospital Equipment: procurement and installation of medical imaging, laboratory and research equipment, surgical and training simulation equipment, and obstetric/gynecological and physical-medicine equipment.
• Component C — Human Resource Capacity Building: formal education for 457 staff and training/workshops for 5,500 hospital staff, with at least 30% women participants targeted by 2025.
• Component D — Strengthening Hospital Institutions: ICT and data-integration systems (including the national integrated referral system, telemedicine, and big-data/AI applications), quality-of-care improvements, and research and development in oncology, stem-cell technology, and fetal therapy.
• Component E — Emergency Preparedness: strengthening public-health workforce and hospital capacity to respond to infectious-disease outbreaks, including flexible negative-pressure isolation facilities — a direct lesson from the COVID-19 pandemic.
• Component F — Project Management Support: establishment of the national Project Management Unit (PMU) and hospital-level Project Implementation Units (PIUs), supported by detailed engineering design, project management supervision, and equipment consultants.

Financing

Total project cost is estimated at USD 293.079 million. IsDB financing follows a two-step structure: Step 1 (Installment Sale A) of USD 12.153 million for project management support, and Step 2 (Installment Sale B) of USD 249.565 million for civil works and hospital equipment. The Government of Indonesia co-finances land acquisition, non-medical equipment, detailed engineering design, financial audit, and PMU/PIU operating costs.

Implementation Arrangements

The Ministry of Health is the Project Executing Agency, supported by a national Project Management Unit (PMU) and hospital-level Project Implementation Units (PIUs) at each of the six referral hospitals. Procurement is carried out through the Directorate General of Health Services and hospital-level procurement units in line with IsDB procurement guidelines.

Expected Impact

The project is expected to expand access to high-quality referral care, strengthen maternal and child health, cancer, and respiratory-disease services, and enhance Indonesia’s national health-emergency preparedness for future disease outbreaks.