Indonesian Political, Business & Finance News

PT SMI allocates Rp69.7 billion for Padang Pariaman regional hospital construction

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
PT SMI allocates Rp69.7 billion for Padang Pariaman regional hospital construction
Image: ANTARA_ID

PT Sarana Multi Infrastruktur (Persero) has disbursed Rp69.7 billion to the Padang Pariaman Regency Government for the development of a Type D Regional Hospital (RSUD) in Sungai Limau District.

The financing covers hospital building construction, non-medical facilities, utility structures, and mechanical and electrical needs amounting to Rp59.52 billion. Additional funds include Rp8.36 billion for medical equipment, Rp1.3 billion for furniture, and Rp519.9 million for construction management services.

PT SMI Director General Reynaldi Hermansjah stated that building the Type D RSUD is a strategic move to expand public healthcare access, particularly in areas with limited medical facilities. “This Type D RSUD is designed with a 50-60 bed capacity to serve five to six districts in Padang Pariaman. Its presence is expected to greatly benefit the community by expanding healthcare access, reducing travel time for medical services, and improving basic healthcare quality,” he said in a statement on Sunday.

Padang Pariaman Regent John Kenedy Azis expressed appreciation for PT SMI’s financial support. “We highly appreciate PT SMI’s trust in the Padang Pariaman Regency government. For this hospital construction, we anticipate groundbreaking by mid-July, though sooner would be better to allow the community to benefit from its operations as soon as possible,” he said, adding that he would ensure contractors execute the project optimally to responsibly manage the funds.

The hospital’s construction aims to provide closer, faster, and more affordable healthcare services. Currently, residents in northern Padang Pariaman must travel long distances for medical referrals, even in emergencies. The new facility is expected to reduce patient travel time, strengthen referral systems, and improve equitable access to medical services.

Beyond healthcare, the project is projected to boost the local economy through job creation, growth in micro, small and medium enterprises (MSMEs), and increased economic activity around the hospital area.

Adequate healthcare infrastructure is crucial for attracting investment and improving residents’ quality of life sustainably. Padang Pariaman’s economy is dominated by transportation and warehousing (22.10% of total gross regional domestic product (GRDP) for 2025), followed by agriculture, forestry, and fisheries (20.49%), and manufacturing (10.49%). The transportation sector’s dominance, valued at approximately Rp5.15 trillion, underscores the need for infrastructure and public services to support mobility and economic growth.

Feasibility studies indicate the project has an Internal Rate of Return (IRR) of 4.80%, exceeding the BI Rate, making it viable with long-term benefits for the community and region.

This collaboration strengthens PT SMI’s portfolio of government financing. As of March 2026, PT SMI’s total government financing commitments amount to Rp37.44 trillion, with outstanding disbursements of Rp15.25 trillion. PT SMI continues to accelerate financing for inclusive development and economic growth across Indonesia.

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