Strengthening the Nation’s Resilience through Health Infrastructure Development

   

As the ongoing COVID-19 pandemic has affected every part of our lives, it has also shifted our priorities going forward. Indonesia’s progress has constantly mainly relied on developing its public service, infrastructure, and facilities—namely hospitals, schools, and housing due to its crucial roles in sustaining the people’s livelihoods and quality of life. After the pandemic happened, health infrastructure and facilities became the government’s top priority to ensure the nation’s resilience.

As a part of the larger plan in achieving this goal, the Ministry of Investment/Investment Coordinating Board (BKPM) and the provincial government of Central Java held a Market Sounding event for the development of a regional central hospital (RSUD Unggulan Ibu dan Anak) development project in Pekalongan. The open bidding for the project is available for investors in both the public and private sectors.

In a statement, BKPM’s Acting Director of Agribusiness and Natural Resources Planning, Moris Nuaimi, expressed that the participation of the private sector in the development of projects like health infrastructure can support the improvement of quality in health services. Furthermore, he also stated that the development of the health sector from 2020 to 2024 is focused on realizing a more comprehensive health service.

The challenges that infrastructure development projects face include the limitation of budget allocation for the entirety of the project, which encompasses the cost of planning, construction, maintenance, and operations. To answer these challenges, Public-Private Partnership (PPP) offers a beneficial solution.

The project itself will need approximately IDR295.7 billion, with a Design-Build-Finance-Maintain-Transfer (DBFMT) investment scheme. The returns for the investment will be processed in availability payment within 20 years. The Market Sounding event is attended by more than 50 companies from both private and public sectors, ranging from developers, consultants, financial institutions, international organizations to hospital management companies.

RSUD Unggulan Ibu dan Anak Pekalongan is targeted to be a regional referral hospital for the Pekalongan City and Regency, Batang Regency, Tegal City and Regency, Brebes Regency, and Pemalang Regency. The development scope comprises three hospital buildings, including an emergency department, morgue, laboratory, inpatient rooms (298 beds), polyclinic, and a parking lot. The hospital is expected to decrease the rate of maternal mortality and help with issues such as child stunting in Central Java. This goal is in line with Indonesia’s commitment to realizing Sustainable Development Goals or SDGs, specifically point number 3, Good Health and Well-being.

One of the most important steps for a developing country like Indonesia is establishing a proper and reliable health infrastructure, which can be accessed easily by the people. Thus, the open bidding and development plan as devised by Ministry of Investment/BKPM is crucial in building better well-being for the people of Indonesia. To withstand the ongoing pandemic and go further beyond it, investments in the health sector will need to continue and remain strong for Indonesia.