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ublicly listed hospital operator PT Siloam International Hospitals, part of the Lippo Group diversified conglomerate, will set up 13 new hospital chains across the country within two years in response to increasing demand for healthcare services.

The plan will see Siloam'€™s total number of full-service hospitals increase to 33 from 20 at present, said the company'€™s president director Romeo F. Lledo. Romeo added that each hospital was estimated to consume an average investment of US$8 million.

This year, Siloam will set up a new hospital in Yogyakarta, and seven others will finish construction in Bangka-Belitung Islands, Lubuklinggau, South Sumatra, Bau-Bau, Southeast Sulawesi, Bogor, West Java, Jember, East Java, Labuan Bajo, East Nusa Tenggara and Sorong, West Papua.

In 2018, the company expects to finish construction of five more hospitals. The hospitals will be situated in Ambon, Maluku, Bandung, West Java, Panakkukang, South Sulawesi, Srondol Wetan, Central Java, and Cempaka Putih, Jakarta.

Romeo said Siloam was sure that secluded places like Labuan Bajo and Sorong would bring in good revenue, considering the fact that there was lack of healthcare investment in those areas, despite the fact that the areas, which are of interest to travelers, are being developed by the government.

'€œWe don'€™t concentrate on big cities alone, because we know the demand for good-quality healthcare is unconditional,'€ he said during the company'€™s public expose last week.

In terms of business, Romeo said that demand would still exist regardless of the size of a city.

'€œIf we could serve Indonesians irrespective of level, we are sure to gain a lot of benefit from that,'€ he said, highlighting that business volume was an important factor in increasing profits.

Siloam'€™s massive expansion plan is part of the company'€™s goal to have more than 50 healthcare centers across Indonesia. The initial plan was to achieve the figure by 2017.

The number of the company'€™s hospitals was only four in 2010 '€“ in Lippo Village, Lippo Cikarang, Kebon Jeruk, and Surabaya. The company then added 16 new hospitals nationwide within four years.

Siloam went public in 2013, raising Rp 1.4 trillion in an initial public offering.

The expansion of Siloam'€™s branch is expected to bring in more revenue to the company. The company targets to record a 5.2 percent increase in revenues this year, said Romeo.

'€œOur profits last year enabled us to open up seven new hospitals this year,'€ he added.

In 2015, Siloam booked revenues of Rp 4.144 trillion, up 24 percent from the Rp 3.144 trillion recorded in 2014.

Dr. Andry, Siloam'€™s managing director and chief of enterprise and operations, said the company'€™s smaller arms, Siloam clinic and Siloam Medika '€” which target lower income levels '€” would also positively impact the company.

'€œWe have 17 Siloam clinics spread throughout places like CyberPark in Karawaci and Mertanadi in Bali. Furthermore, dozens of Siloam Medika are undergoing development now,'€ he added.

Andry said that both healthcare models '€” clinic and Medika '€” were established last year, and aimed to attract the middle and lower-classes by offering affordable healthcare treatment. The company cooperates with the Social Security Agency to offer basic services such as medical check-ups.

In the public expose, Siloam unveiled that its shareholders had agreed to appoint new names to its board of commissioners and directors, most notably Lippo Group deputy chairman James Riady'€™s eldest daughter Caroline Riady.