Denpasar DPRD Scrutinises RSUD Wangaya Hospital Financing Scheme
The Wangaya Regional General Hospital (RSUD) in Denpasar is planned to be developed into a more modern and representative medical facility. The improvement in quality and services of the Denpasar City Government-owned hospital is planned to be financed through a Government and Business Entity Cooperation (KPBU) scheme.
However, the Denpasar Regional House of Representatives (DPRD) has requested that the decision regarding the financing scheme for the RSUD Wangaya development not be made hastily. This is because large-scale approval requires a strong, mature, and transparent foundation.
“Of course, in this matter, if we look at what has been designed by Wangaya Hospital, we still really want there to be an academic study, a business analysis. What would the business study look like if we use KPBU,” said Deputy Chair of the Denpasar DPRD, I Wayan Mariyana Wandhira, on Tuesday (4/8/2026).
Wandhira stressed that the budget value for the development of RSUD Wangaya requires certainty, not just a rough outline or an estimate on paper. For him, a major decision that binds the regional budget for decades cannot be taken based on a rough outline or mere estimates.
According to Wandhira, a more in-depth business case is needed as a comparison to determine the best financing scheme. There are several other financing options that need to be compared, such as KPBU, the regional revenue and expenditure budget (APBD), grant funds, or regional loans.
“Is it possible that it would be more profitable if we use the APBD, if we use grants or other loans? Now, we need to obtain that study. Not just suddenly approving KPBU,” Wandhira explained.
“We want a study that has truly gone through several mechanisms so that what is presented to us is a picture that is close to final,” Wandhira continued.
Wandhira expressed concern about the long-term impact of the KPBU scheme on the Denpasar City Government’s finances. The availability payment is estimated at IDR 100 billion to IDR 160 billion per year over a 20-year period, which could significantly burden the APBD if not calculated carefully.
“Currently, there is no comparative study. If there were, we would automatically find it easier to provide feedback if there are pros and cons. We accumulate, which is more feasible, profitable, and sustainable for the Denpasar City Government,” Wandhira explained.
“We really need this business case study. Who is responsible for the payment and so on, and if it fails, what is the process, who bears it, that must be clear,” Wandhira clarified.
The Head of the Denpasar Regional Development Planning Agency (Bappeda), I Wayan Putra Sarjana, revealed that the estimated cost of the RSUD Wangaya project reaches IDR 1.2 trillion. However, the Denpasar City Government is still conducting a more in-depth study to align a financing scheme that is safe for the region.
“We are still in the process of aligning the payments. It is possible that there are still aspects of the financing that need to be examined more closely because the guarantee is the APBD. We are also looking at the future situation and global dynamics, which require lengthy discussion,” said Putra.