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Bali Hospital on Hold

Delays in Issuance of Building Permit Means Bali Mandara International Hospital on Hold Until Next Year

(9/27/2013) The Bali Daily (Jakarta Post) reports that the provincial government of Bali has postponed the building of the Bali Mandara International Hospital until at least next year.

The hospital, intended as the centerpiece of the Bali’s government-funded free universal healthcare Program (JKBM - Jaminan Kesehatan Bali Mandara), has been delayed due to the slow processing of the building permit (IMB) for the project.

While many in Bali “build first and seek permission later” Governor Pastika has remained adamant that the construction of the new hospital must conform strictly to the rules.

The Governor explained to provincial legislators: “We have to delay the start of the construction phase because we encountered problems during the process of applying for the IMB [building construction permit].”

The IMB permit from Denpasar municipal authorities was only issued in August, making it impossible to complete the project in the current fiscal year.

“We only have three months left if we want to complete the construction stage in this year’s budget period, which I believe is a nearly impossible feat to accomplish. I will ask the contractor whether they would be able to do this. If they say no, then we will have to start construction next year,” Pastika said.

The delay in the program requires the Governor to seek a new appropriation in the 2014 budget in order for construction to commence.

Pastika’s desire to build a 200-bed hospital in Bali controlled by the Provincial administration is to in-source medical services estimated at Rp. 280 billion (US$24.85) currently out-sourced by Bali to regency or Jakarta-controlled hospitals. Said Pastika: “Bali Mandara International Hospital will enable us to channel a significant part of the money back to the provincial coffers.”



Bali currently has 1.9 million registered participants in the JKBM universal health care program.

Cost of building to the news hospital is put at Rp. 195 billion. (US$17 million).

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