ADB Signs $25M Loan with PT Mitra Plumbon Healthcare to Expand Hospitals in Java

The Asian Development Bank (ADB) has signed a loan of up to Rp415 billion (approximately $25 million) with PT Mitra Plumbon Healthcare to expand hospital capacity in underserved parts of West Java and Central Java, targeting critical infrastructure gaps in Indonesia's fast-growing secondary cities.

The financing will support the construction of a new hospital in Batang, Central Java, and a new outpatient building at an existing hospital in Cirebon, West Java, adding 350 beds and strengthening access for patients covered by Indonesia's national health insurance scheme, Jaminan Kesehatan Nasional (JKN).

Addressing Bed Shortages and Regional Disparities

Indonesia's hospital bed density remains among the lowest in Southeast Asia, with stark regional disparities. While Jakarta and major urban centres are relatively well served, many second-tier cities face limited infrastructure, long travel times and constrained access to specialist care.

"Sustainable development can only be achieved when people are healthy," said ADB Country Director for Indonesia Bobur Alimov. "While Indonesia has made significant progress toward near-universal health insurance coverage, access to quality hospital care can still be strengthened in some areas."

The project is designed to close capacity gaps in areas where population growth has outpaced healthcare infrastructure investment.

Expanding JKN-Covered Services

Mitra Plumbon operates seven hospitals in West Java and serves a predominantly JKN-insured patient base, with more than 80% of patients covered under the national scheme.

The new investments will:

• Add 350 hospital beds

• Expand inpatient and outpatient services

• Create local employment opportunities

• Improve service access in Batang and Cirebon

In April 2025, Mitra Plumbon's main hospital in Cirebon — with more than 700 beds — became the first private hospital in the region to receive Joint Commission International (JCI) accreditation, a globally recognised benchmark for hospital quality and patient safety.

First Sustainability-Linked Healthcare Loan in Indonesia

The financing marks Indonesia's first sustainability-linked loan in the healthcare sector, tying financial incentives to environmental, social and gender performance targets.

Key sustainability commitments include:

• Installation of solar energy systems at hospital facilities

• Increased employment of female doctors and nurses

• Expanded service access for JKN-insured patients

The loan structure has been independently certified by second-party opinion provider DNV.

Gender-Based Violence Response Measures

ADB will also support the introduction of gender-based violence (GBV) response protocols at the new Batang hospital, including:

• Staff training on survivor-centred care

• Referral mechanisms to specialist support services

• Systems to ensure safe and dignified treatment for survivors

The integration of GBV response measures aligns with broader efforts to strengthen health systems as entry points for protection and social support services.

Private Sector Role in Public Health Expansion

"As a private hospital operator focused on JKN patients, our mission is to deliver high-quality care where it is most needed," said Mitra Plumbon Chief Executive Officer Festus Susilo. "Partnering with ADB enables us to expand our service capacities, strengthen our sustainability practices, and improve health outcomes."

Founded in 2003, Mitra Plumbon Healthcare has expanded steadily over two decades and now operates seven hospitals with more than 2,700 beds across West Java.

ADB, established in 1966 and owned by 69 members — 50 from the Asia-Pacific region — continues to scale private sector partnerships to address infrastructure deficits and strengthen inclusive growth across Southeast Asia.

The Java hospital expansion signals a growing role for blended finance and sustainability-linked instruments in closing healthcare infrastructure gaps in emerging markets.