Indonesia : Development of the Center of Excellence in Tropical Herbal Medicine (AIIB-001195)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 19, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Republic of Indonesia, Dian Lestari
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 47.71 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 47.71 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 49.49 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 10, 2026

Disclosed by Bank Aug 11, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank's website, the proposed project aims to strengthen healthcare service delivery, medical education, and research capacity at Universitas Sebelas Maret Hospital (RS UNS), along with the development of a tropical herbal medicine center of excellence. The Project Investment will be carried out with the below Project Components: 

Component A – Civil Works: The Project will develop the following three main buildings with green building features. The Hospital Building, located on the main campus in Sukoharjo Regency, will provide medical services and clinical education. Also on the main campus, the Tropical Herbal Medicine Building will be dedicated to herbal extraction, analysis, and incubation of herbal product start-ups. The Biomedical Engineering Building, located in Kentingan, Surakarta City, will support genomics research, medical product development, and clinical simulation. Component A covers the works carried out under the civil works contract. This includes site development and landscaping, including the medical gardens, structural and architectural works, laboratory fit out and containment, clean zoning, mechanical, electrical and plumbing works, heating, ventilation and air conditioning and filtration, medical gas, lifts, the skybridge, internal data cabling, and the green building measures. 

Component B – Procurement of equipment: This component will finance advanced laboratory, pilot production, and biosafety equipment to support the development and validation of tropical herbal medicine and its integration into modern health service delivery. It also includes complex clinical diagnostic and therapeutic equipment. Additionally, this component includes digital infrastructure and furniture. 

Component C – Human Capital Development: The proposed human resource capacity development plan, funded entirely by the Government of Indonesia (GoI), is intended to ensure the long-term sustainability of the infrastructure investments.  The non-degree training program entails short courses, internships, workshops, and comparative studies at leading overseas institutions to enhance proficiency, especially in high-end laboratory systems such as next-generation sequencing and other technologies relevant to pre-clinical and pharmaceutical research. 

Component D – Project Implementation Support: The Component D will include implementation support to strengthen execution capacity and ensure compliance with both international standards and GoI regulations. This component will finance project design and management consultancy expertise, including in detailed engineering design, project management and supervision, equipment planning and procurement support, and other technical studies such as environmental assessments. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total estimated project cost is USD49.49 million of which AIIB loan will fund up to USD47.71 million. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Team Leader: Deni Fauzi 

Title: Senior Investment Officer 

Email: deni.fauzi@aiib.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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