Jeddah, Kingdom of Saudi Arabia, 10 December 2023 – The Islamic Development Bank (IsDB) Board of Executive Directors has approved US$ 845.5 million in financing for the Republic of Indonesia to strengthen the country’s healthcare referral network (SIHREN).

The project aims to improve the physical and service capacity of the health referral system in Indonesia, ensuring equal access to quality healthcare services. It will also reduce the burden of non-communicable diseases (NCDs), particularly cancer, heart diseases, stroke, and uronephrology diseases, as well as mother and child health. The scope of the project encompasses medical equipment provision for 535 District Hospitals, 47 Province Hospitals, and 23 Health Ministry Hospitals.

The SIHREN project is part of the US$ 4 billion Health System Strengthening (HSS) program, a collaborative effort spearheaded by the Ministry of Health Republic of Indonesia, in partnership with four multilateral development banks: IsDB, World Bank (WB), Asian Infrastructure Investment Bank (AIIB), and Asian Development Bank (ADB).

With an estimated total project cost of US$ 1.98 billion, the IsDB's financing of EUR 803.3 million (equivalent to USD 845.5 million) will be complemented by co-financing from the World Bank, AIIB, and the Government of Indonesia.

The SIHREN project holds immense importance for the Government of Indonesia, aligning with national development goals, including the Health Development Strategy of 2005-2025 and the National Medium-Term Development Plan 2020 – 2024. It forms a crucial component of Indonesia's Health Transformation Agenda, supporting the implementation of the country’s post-pandemic recovery efforts. It is vital to strengthen Indonesia's health system to effectively respond to future pandemics and the challenges posed by climate change.

IsDB is proud to partner with the Indonesian Government in strengthening the nation's healthcare system. This builds upon IsDB's existing collaboration through two ongoing projects: The Strengthening of National Referral Hospitals (IDN1031) and National Referral Hospital in Oncology Services (IDN1054). The SIHREN project further aligns with IsDB's 2022-2025 Member Country Partnership Strategy (MCPS) for Indonesia, prioritizing inclusive human capital development and emphasizing the health sector.

Furthermore, the SIHREN project contributes to the achievement of the Sustainable Development Goals (SDGs), particularly Goal 3 (Healthy and Prosperous Lives), Goal 5 (Gender Equality), Goal 7 (Affordable and Clean Energy), Goal 8 (Decent Work), and Goal 13 (Climate Action).

IsDB is committed to supporting Indonesia's healthcare transformation and building an inclusive and sustainable future for its citizens through the transformative SIHREN project.