South Korean Funding at Risk as North Sumatra Speeds Up RSU Haji Medan Expansion

AHMAD ZULFIKAR SAGALA - Saturday, 10 October 2026 03:00
PHOTO: North Sumatra Communication and Informatics Office
ACCELERATING THE EXPANSION OF RSU HAJI MEDAN: The North Sumatra Provincial Government is working to accelerate the development of RSU Haji Medan into an international referral hospital by seeking South Korean financial support through Bappenas.

JAKARTA | INDATANEWS.COM - The North Sumatra Provincial Government is stepping up efforts to develop RSU Haji Medan into an international referral hospital. The move follows concerns that a potential financing opportunity from the Government of the Republic of Korea under the Economic Development Cooperation Fund (EDCF) could be lost. The project has not yet been included in the Medium-Term List of Planned Foreign Loans for 2025–2029 (DRPLN-JM).

The provincial government raised the issue during a coordination and consultation meeting with Minister of National Development Planning and Head of the National Development Planning Agency (Bappenas), Rachmat Pambudy, in Jakarta on Thursday, October 8, 2026. At the meeting, North Sumatra Governor Muhammad Bobby Afif Nasution asked the central government to support the hospital development project's reinstatement in the medium-term foreign loan financing plan.

The matter has become increasingly urgent because the financing agreement between Indonesia and South Korea is scheduled to expire on December 31, 2026. According to the provincial government, accelerating administrative procedures and strengthening coordination with the central government are essential to preserving the financing opportunity, which has already progressed through earlier stages of the process.

"The main priority is the plan to develop RSU Haji Medan into an international referral hospital. This involves support through the Economic Development Cooperation Fund (EDCF), a development cooperation financing instrument of the Government of the Republic of Korea administered by the Export-Import Bank of Korea (Korea Eximbank)," Bobby Nasution said.

South Korean Financing Faces a Tight Deadline

Bobby explained that in February 2024, the RSU Haji Medan development project had already reached the formal financing request and financing commitment stages. The proposed financing arrangement offers an interest rate of 0.05 percent, a repayment period of 40 years, and a 10-year grace period before repayments begin.

The EDCF is a development financing instrument established by the Government of the Republic of Korea and administered by the Export-Import Bank of Korea, commonly known as Korea Eximbank. The scheme is considered one of the potential funding sources for strengthening healthcare services in North Sumatra through the construction of a hospital meeting international referral standards.

However, following adjustments to the 2025–2029 National Medium-Term Development Plan (RPJMN), the project has yet to be included in the DRPLN-JM for the same period. The North Sumatra Provincial Government has therefore requested that the project be reinstated in the government's financing plan.

"Since the cooperation agreement between Indonesia and Korea expires on December 31, 2026, accelerating the process is crucial to ensuring that this financing opportunity remains available. Our request for the project's reinstatement (Re-Entry) was submitted to Bappenas on September 22, 2026. We are therefore seeking support for these efforts so that the project can be included in the 2025–2029 DRPLN-JM," Governor Bobby Nasution explained.

The reinstatement request, known as Re-Entry, is an important step toward securing the continuation of the hospital development project. The provincial government hopes Bappenas will provide the necessary support and guidance to ensure that the process proceeds in accordance with national development planning mechanisms.

However, further procedural steps and a formal decision by the central government are still required before the financing can be considered secured. As long as the project remains absent from the 2025–2029 DRPLN-JM, the continuation of financial support cannot be guaranteed. Close cooperation among the relevant institutions is therefore necessary to meet all requirements and complete the administrative process on time.

The North Sumatra Provincial Government expects Bappenas' support to help clarify the project's status and pave the way for the financing to be made available. Such certainty is important to prevent construction from being delayed by changing planning priorities or the expiration of the financing agreement.

RSU HAJI MEDAN SEEKS REINSTATEMENT IN FOREIGN LOAN PLAN: North Sumatra Governor Muhammad Bobby Afif Nasution has asked Bappenas to support the reinstatement of the RSU Haji Medan development project in the medium-term foreign loan financing plan. (PHOTO: North Sumatra Communication and Informatics Office)

RSU Haji Medan Targeted for International Referral Status

The planned development of RSU Haji Medan into a hospital meeting international referral standards is among the healthcare projects the North Sumatra Provincial Government has submitted to the central government for support.

Developing a well-equipped referral hospital is intended to strengthen the region's medical service capacity. Healthcare facilities operating to higher treatment standards can also help improve public access to appropriate medical care.

To implement the project, the regional government needs reliable support for development planning and financing. The EDCF is one of the funding opportunities the government hopes to preserve by securing the project's reinstatement in the 2025–2029 DRPLN-JM.

Bobby emphasized the importance of central government support in advancing the process. In his view, formally including the project in the financing plan is a key prerequisite for preparing the next stages of hospital construction in a focused and coordinated manner.

During the meeting with the head of Bappenas, the North Sumatra Provincial Government also discussed aligning regional development objectives with the 2025–2029 National Medium-Term Development Plan. The discussions covered the continuation of priority projects and strategic national programs that require close coordination between central and regional governments.

For the provincial government, improving healthcare services is linked to broader development goals. These include better transport connectivity, stronger economic centers, and more balanced development across different regions. However, the RSU Haji Medan expansion requires particular attention because it depends on an international financing opportunity whose continuation must be addressed within a limited timeframe.

For this reason, accelerating the project's resubmission has become one of the provincial government's key priorities. The effort is intended to preserve the financing opportunity while providing clarity on the next steps for hospital construction.

FIVE DEVELOPMENT PRIORITIES PRESENTED: The North Sumatra Provincial Government has submitted five development priorities to Bappenas, ranging from the expansion of RSU Haji Medan to accelerating post-disaster recovery. (PHOTO: North Sumatra Communication and Informatics Office)

Five Development Priorities for North Sumatra

In addition to expanding RSU Haji Medan, the North Sumatra Provincial Government presented four other priorities requiring central government support. These include integrated regional development, accelerated development of the Nias Islands, expansion of the Belawan–Kuala Tanjung–Sei Mangkei industrial and logistics corridor, and post-disaster rehabilitation and reconstruction for 2026–2028.

In his presentation, Bobby explained that North Sumatra's strategic location gives it an important role as Indonesia's western gateway to international trade routes. The province has a population of approximately 15.8 million. In the second quarter of 2026, its regional gross domestic product (PDRB) reached approximately Rp341.05 trillion, recording growth of 5.06 percent.

"North Sumatra's strategic position is as Indonesia's western gateway to international trade routes. The province has around 15.8 million residents. In the second quarter of 2026, its regional gross domestic product reached approximately Rp341.05 trillion, grew by 5.06 percent, and accounted for around 23 percent of the combined regional gross domestic product of Sumatra and 5.21 percent of Indonesia's national gross domestic product," the governor said.

The provincial government aims to strengthen links between economic growth centers and regional economic potential. These include palm oil, rubber, coconuts, food production, and the energy sector. The areas identified as priorities include Greater Medan, the Medan–Binjai–Deli Serdang industrial area, Kuala Tanjung–Sei Mangkei, Lake Toba, and the growth centers of Sibolga–Pandan–Padangsidimpuan, Rantauprapat, Kabanjahe, and Gunungsitoli.

"The challenge is to connect these growth centers with resources and industries such as palm oil, rubber, coconuts, food production, and energy to create an integrated economic ecosystem. Through this approach, we aim to strengthen our efforts to develop North Sumatra into a growth center in western Indonesia," Bobby Nasution said. He was accompanied by several heads of the relevant regional government agencies.

The provincial government also proposed a special development program for the Nias Islands for 2027–2029. The program is intended to improve transport connectivity, strengthen basic public services and human resource development, expand local downstream processing, promote tourism in South Nias, and reinforce Gunungsitoli's role as an economic and logistics hub.

"The Nias Islands have considerable potential in tourism and culture, marine and fisheries industries, plantations, and an economy based on local resources. However, development continues to face challenges, including inadequate transport connectivity, high logistics costs, limited market access, and infrastructure gaps," Bobby said.

In the industrial and logistics sector, the regional government aims to integrate three strategic locations more closely: Belawan as a trade gateway, Kuala Tanjung as an international hub, and Sei Mangkei as a center for industrial downstream processing. For 2027–2029, it proposed developing a strategy for the corridor, including aligning programs and coordinating financing across multiple ministries and government agencies.

Meanwhile, the 2026–2028 post-disaster rehabilitation and reconstruction program in North Sumatra will focus on restoring housing, infrastructure, and transport links, as well as basic public services, agriculture, and the socioeconomic conditions of affected communities.

"The final priority concerns implementation of the post-disaster rehabilitation and reconstruction program in North Sumatra for 2026–2028. The focus includes housing, infrastructure and transport links, basic services, agriculture, and the socioeconomic conditions of the population. We ask Bappenas to coordinate efforts to resolve obstacles across ministries and agencies and establish clear targets," Bobby concluded.

Through these five priorities, the North Sumatra Provincial Government hopes to secure concrete support from Bappenas. This support is expected to cover financing, the allocation of responsibilities, coordination among ministries and agencies, and measurable implementation targets. The regional government is also pursuing development cooperation with ten provinces across Sumatra to strengthen transport connectivity and interregional collaboration.

Although all five development priorities require central government support, the expansion of RSU Haji Medan remains a particular focus. The key concern is the South Korean financing opportunity, which requires further action before the cooperation period ends. The North Sumatra Provincial Government is therefore seeking support to reinstate the project in the 2025–2029 DRPLN-JM, allowing plans to develop the hospital into an international referral facility to move forward. (IDNC)

REPORTER: Ahmad Zulfikar | EDITOR: Fik Sagala


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