The hospital at Kajoeagoeng in the Residency of Palembang (South Sumatra) was established by the local council of Komering Hilir in the 1920s  and received subsidy according to the regulations of Staatsblad 1917 no. 229 ( Toekennning van tegemoetkomingen uit ‘sLands Kas aan locale ziekeninrichtingen).It was a small hospital with only 16 beds (See Indisch Verslag 1930 p. 385).This subsidy was withdrawn by 1 January 1935 (Gouvernementsbesluit 16 October 1936 no. 1).
During 1929, the hospital used on average 13 beds (capacity 16 beds) and produced 4,725 nursing days. Its subsidy for that year was only f 2,055 (f 0.43 per day).

In the 1930s, Komering Hilir was asubdivision of the Division Palembang Lowerlands, Residency Palembang. Its administrative head officer was a Controleur Binnenlands Bestuur. The capital was Kajoeagoeng. The subdivision had 115,000 inhabitants, of whom 22 Europeans and 200 Chinese. It is a water and fish domain with a prosperous population and having well-kept land and waterways (Gonggryp 1934, 690).

See General hospitals 1940 – Google maps for the location of the town.