Indonesia Health Systems Strengthening Project

More than half of the world's countries are classified as middle-income, meaning their Gross National Income (GNI) is below $12,500 per capita. Indonesia is one such country, with a GNI per capita of $4,580. These countries often aim to move beyond the middle-income bracket, as the difference between middle-income and high-income countries can be as much as $8,000 per capita.

Health Transformation Agenda

To achieve sustained economic growth, many countries aim to transition from middle-income to high-income status. This transition is often facilitated by what is known as the 'Demographic Bonus', which occurs when a country's population of productive age reaches its maximum. Indonesia is currently presented with this opportunity, as it is estimated that by 2030, 68% of the population, or 205 million people, will be of productive age. After the peak of the demographic bonus, it is expected that energy levels may decrease due to an aging population. This may expose Indonesia to significant financial and healthcare burdens. Therefore, it could be considered crucial for Indonesia to invest in healthcare to care for productive individuals and treat the sick. To address such growing burdens to our lives and economy, Indonesia has an health transformation agenda that largely focuses on primary health. Promoting healthy lifestyle, expanding immunization, mandatory screening, and improving quality and access to primary healthcare. which is categorised into 6 pillars of health transformation

  • Primary Care Transformation
  • Referral Services Transformation
  • Health Resilience System Transformation
  • Transformation of the Health Financing System
  • Transformation of Health Human Resources
  • Health Technology Transformation

Improving Healthcare

In Indonesia’s health transformation agenda, we are trying to significantly improve primary and referral healthcare by:

  • Revitalizing network of 300,000 Posyandu, 10,000 Puskesmas, and 514 city-level public health laboratories.
  • Expanding routine immunizations from 11 to 14 antigens, incorporating HPV, PCV, and rotavirus vaccines to prevent cervical cancer, as well as decreasing infant mortality from pneumonia and diarrhea.
  • Increasing screening of 14 priority diseases accounting for the highest cause of deaths in each age group.
  • Improving maternal and child health, through equipping primary care with essential equipment, including USG for antenatal care, among others.
  • Improving referral hospital services especially for catastrophic diseases such as cancer, heart disease, stroke, and uro-nephrology also lack the necessary infrastructure, medical equipment, and skilled healthcare professionals to provide high-quality care which currently leading to overcrowding, long wait times, and inadequate treatment.

Through a strong partnership with multilateral development banks (MDBs), Indonesia could potentially accelerate the provision of health infrastructure. The partnership of MDBs includes the World Bank (WB), Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), and Islamic Development Bank (IsDB), will jointly support the Government to deliver on this transformative operation. MoH and the MDBs have agreed on:

  • a joint co-financing between WB, AIIB, and ADB for the primary care component,
  • a joint co-financing between WB and ADB for the laboratory component, and
  • a joint co-financing between WB and AIIB, as well as parallel co-financing from IsDB, for the referral hospital component.

Project Key Components

As guided by MoH, all MDBs that form part of the joint co-financing arrangement have agreed to use World Bank procurement regulations. The financing share of the World Bank is at US$1.485 billion. The proposed Project is also closely aligned with the World Bank Group’s Indonesia Country Partnership Framework (CPF) for Fiscal Year (FY) 2021-2025. Its development objective, which seeks to strengthen health and laboratory facilities’ service readiness and improve access of all Indonesians to integrated, quality health services in the country, resonates strongly with the CPF Objective 3.2 on strengthening the quality and equity in nutrition and health. This is part of Engagement Area 3, ‘Nurture Human Capital’. The Project sets out to contribute to addressing the critical health sector challenges identified in the CPF. The proposed Project will have the following key components and activities:

  1. Component 1:
  2. Procurement, installation, operation, and maintenance of equipment to primary care facilities across Indonesia “Strengthening of Primary Healthcare in Indonesia’ or SOPHI component. This component seeks to contribute to the procurement of equipment for all Posyandu, Pustu, and Puskesmas, as well as Tier 1 public health laboratories across Indonesia. The types and numbers of equipment, as well as the facility location where these pieces of equipment will be delivered will be based on the updated gap assessment from MoH, supported by the World Bank, during project preparation.

  3. Component 2:
  4. Procurement, installation, operation, and maintenance of equipment to referral hospital facilities across Indonesia “Strengthening Indonesia’s Healthcare Referral Network” or SIHREN component. This component seeks to contribute to the procurement of equipment for all Madya, Utama, and Paripurna-level hospitals across Indonesia.

  5. Component 3:
  6. Procurement, installation, operation, and maintenance of equipment to tier 2, 3, 4, and 5 public health laboratory facilities across Indonesia “Indonesia – Public Laboratory System Strengthening” or InPULS component. This component seeks to contribute to the procurement of equipment for all tier 2, 3, 4, and 5 public health laboratories across Indonesia.