Mandiri president director Budi Gunadi Sadikin said he was optimistic that the acquisition could help InHealth become a main actor in the health insurance business.

'We are optimistic that this transfer of ownership will breathe new life in InHealth to strengthen its business through distribution networks and customer base support owned by Bank Mandiri and Jasindo, as well as comprehensive healthcare services belonging to Kimia Farma,' said Budi on Thursday as quoted by Antara news agency.

The InHealth acquisition agreement was a follow up to the signing of a conditional share purchase agreement (CSPA) between three state-owned companies -- Bank Mandiri, drug maker Kimia Farma and insurance firm PT Asuransi Jasa Indonesia (Jasindo) ' and PT Askes (Persero) and Koperasi Bhakti Askes.

The InHealth acquisition is set to take place in two stages. In the first stage, Bank Mandiri will acquire 60 percent its stock while Kimia Farma and Jasindo each will acquire 10 percent. Bank Mandiri will then buy all of the remaining Askes stock in InHealth by the end of this year.

Budi said it was estimated that total healthcare spending, including on insurance, would increase by 20 and 25 percent per year. The number of workers in the sector would increase by in between 800,000 and 1 million per year.

As of December 2013, InHealth had 49 branch offices across Indonesia and works with more than 4,000 healthcare providers, including hospitals, pharmacies, and physicians.

InHealth has more than one million members and raised gross premium revenue of more than Rp 1.4 trillion in December 2013. (ebf)

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