SMI backs Padang Pariaman hospital project with regional loan

By Rara Suratmi

State infrastructure financing company PT Sarana Multi Infrastruktur (SMI) has signed a regional loan agreement worth Rp69.7 billion (US$3.89 million) with the Padang Pariaman Regency Government to finance the construction of a new regional hospital in West Sumatra.

The agreement, signed on May 21, 2026, will support the development of a Type D Regional Public Hospital (RSUD) in Sungai Limau District, according to SMI.

The project is expected to improve access to healthcare services for local residents by bringing medical facilities closer to communities while helping reduce healthcare costs and travel times.

SMI said the hospital development is also expected to contribute to regional economic growth through improved public services and the creation of economic activity associated with healthcare infrastructure.

Read also : SMI extends regional loan for roads and hospital development in Jambi

The financing support forms part of SMI's mandate as a Development Finance Institution (DFI) to assist local governments in funding infrastructure and public service projects that generate social and economic benefits.

Through its regional loan program, SMI provides financing to local administrations for projects ranging from healthcare and education facilities to transportation and other public infrastructure.

Padang Pariaman Regency is located in West Sumatra and is home to more than 400,000 residents. The addition of a new regional hospital is expected to strengthen healthcare capacity in the area and improve service coverage for surrounding communities.

SMI, which operates under Indonesia's Ministry of Finance, has been expanding its support for regional infrastructure development as part of broader efforts to improve public services and promote balanced economic growth across the country.

Editing by Alexander Ginting