Indonesia’s Finance Minister and Health Minister Collaborate with IsDB to Strengthen National Healthcare System Through Infrastructure Investment in Six Vertical Integrated Services Hospitals

Bali, 17 November 2022 – Taking place in the event series of G20 Leaders’ Summit, the Government of the Republic of Indonesia (represented by Minister of Health Budi Gunadi Sadikin and Minister of Finance Sri Mulyani Indrawati) and the Islamic Development Bank (represented by President Muhammad Sulaiman Al Jasser) held a ground-breaking of the mother and child health service buildings simultaneously in six Vertical Hospitals on 17 November 2022. The construction of this building was carried out with the support from the Islamic Development Bank (IsDB) through Its Strengthening of National Referral Hospitals and Vertical Technical Units project. This project aims to increase the availability, accessibility, and quality of maternal and child health services in six Vertical Integrated Services Hospitals (which are also national referral hospitals).

This project is in line with the goals of the 2030 Sustainable Development Goals (SDGs) to reduce the maternal mortality ratio (MMR) to less than 70 per 100,000 births; ending preventable deaths in new-borns and toddlers; reduce neonatal mortality to at least less than 12 per 1,000 births; as well as reducing under- five mortality to as low as 25 per 1,000 births.

Minister Budi Gunadi Sadikin expressed that the Government is making various efforts to accelerate the achievement of health targets through the health transformation program. Health transformation consists of six pillars, namely: primary service transformation, referral service transformation, health resilience system transformation, health financing transformation, health Human Resources (HR) transformation, and health technology transformation. In the referral service transformation pillar, increasing access and quality of hospital services is carried out through the development of referral network hospitals, transformation of vertical hospital services, collaboration with global institutions, and implementation of the Academic Health System. Referral network hospitals are developed to serve 9 (nine) priority types of diseases with the highest morbidity and mortality rates nationally, including: heart disease, cancer, diabetes mellitus, kidney disease, liver disease, stroke, tuberculosis, infectious disease, and maternal and child health.

Minister Sri Mulyani Indrawati mentioned that this project is one of many projects and programs that Indonesia and the IsDB have developed over the period of their long-standing partnership and cooperation. Being a founding member of the IsDB, Indonesia has benefited from IsDB's supports to economic development in the country, notably in education and health sectors as well as in infrastructure investments. The ground-breaking of this mother and child service buildings in the six vertical hospitals demonstrated another important milestone of this close collaboration reflecting the commitments as agreed in the IsDB's renewed Multiyear Country Partnership Strategy.

Chairman of the Islamic Development Bank (IsDB) Group, Muhammad Al Jasser conveyed that IsDB is privileged to be a strong partner of Indonesia in execution of this inspirational “health transformation agenda”. A country with almost 280 million population, almost 85% under public health insurance scheme, this is one of the largest Government healthcare systems all over the World. And today marks an historic date showing our enduring support. This will continue with an upcoming Oncology Hospitals Project. And IsDB believes this is just the beginning of a new era where Indonesia joins hands with IsDB to bring sustainable solutions to the most pressing need of our Indonesian fellows.

The Strengthening of National Referral Hospitals and Vertical Technical Units Project is a multiyear project which commence in 2021 and will be complete in 2026. This project will be implemented in 6 (six) Vertical

integrated services Hospitals spread across 5 (five) provinces, including: Dharmais Cancer Hospital and Persahabatan Hospital in DKI Jakarta Province; Dr. Hasan Sadikin in Bandung, West Java Province; RSUP Dr. Sardjito in DI Yogyakarta Province; RSUP Prof. I.G.N.G. Ngoerah in Denpasar, Bali Province; and RSUP Dr. Wahidin Sudirohusodo in Makassar, South Sulawesi Province. In addition to building construction and supply of equipment, the scope of this project also includes efforts to improve service quality through increasing the competence of hospital human resources, betterment of hospital emergency response capacity, improving hospital information technology, and clinical research collaboration. Total financing of this project amounted to IDR 4.2 trillion or USD 293 million, with IsDB support funding of 89.3% and Republic of Indonesia government funding of 10.7%.

Through this project, it is hoped that the Vertical Integrated Services Hospital receiving IsDB funding can improve the quality of health services, help support maternal and child referral networks, and contribute to improving the health status of mothers and children, reducing deaths from childhood cancer, and improving respiratory health.