Top service: Mayapada Hospital on Jl. Lebak Bulus, South Jakarta. The hospital offers high-quality medical and non-medical service, and also collaborates with Singapore’s National Healthcare Group in management. (JP/Nurhayati)" border="0" height="380" width="597">Top service: Mayapada Hospital on Jl. Lebak Bulus, South Jakarta. The hospital offers high-quality medical and non-medical service, and also collaborates with Singapore’s National Healthcare Group in management. (JP/Nurhayati)

Affluent patients need premium healthcare services, prompting development from major companies.

Indonesia is witnessing the establishment of modern hospital accommodations as developers seek to meet rising demand for affluent tenants of exclusive residential complexes.

Unlike public hospitals that are apt to be monotonous in terms of interior atmosphere, privately-run hospitals have been designed in such a way that patients feel more comfortable.

The fully air-conditioned properties have a hotel atmosphere. “The clean floor, the colors of the walls and the welcoming interior make patients feel that they are in their own home,” said Nirwono Joga, a specialist in architectural issues.

“Affluent people with disposable incomes are apt to seek either faster or higher quality health services, which can be fulfilled by privately-run hospitals,” he added.

According to Nirwono, the fact that many affluent patients leave for neighboring countries for medical check-ups or treatment has prompted several major developers to enter the hospital business.

“They hope that [with improved facilities] patients will go to a hospital at home instead of going to a neighboring country,” he said.

“Construction of hospitals that boast international standards of service is part of the developers’ long-term investment strategy. “Investment in hospitals provide added value because people are in constant need of health facilities,” he said.

To manage the hospitals, several developers choose to delegate operational tasks to separate companies that specialize in administration. “But there are other [companies] that do the building and the managing of the hospital,” Nirwono said.

Publicly listed developer Modernland Realty, Ciputra Group and Lippo Group are among the developers looking to capitalize on the growing demand for exclusive medical services.

Affluent patients need premium healthcare services, prompting development from major companies.

Indonesia is witnessing the establishment of modern hospital accommodations as developers seek to meet rising demand for affluent tenants of exclusive residential complexes.

Unlike public hospitals that are apt to be monotonous in terms of interior atmosphere, privately-run hospitals have been designed in such a way that patients feel more comfortable.

The fully air-conditioned properties have a hotel atmosphere. '€œThe clean floor, the colors of the walls and the welcoming interior make patients feel that they are in their own home,'€ said Nirwono Joga, a specialist in architectural issues.

'€œAffluent people with disposable incomes are apt to seek either faster or higher quality health services, which can be fulfilled by privately-run hospitals,'€ he added.

According to Nirwono, the fact that many affluent patients leave for neighboring countries for medical check-ups or treatment has prompted several major developers to enter the hospital business.

'€œThey hope that [with improved facilities] patients will go to a hospital at home instead of going to a neighboring country,'€ he said.

'€œConstruction of hospitals that boast international standards of service is part of the developers'€™ long-term investment strategy. '€œInvestment in hospitals provide added value because people are in constant need of health facilities,'€ he said.

To manage the hospitals, several developers choose to delegate operational tasks to separate companies that specialize in administration. '€œBut there are other [companies] that do the building and the managing of the hospital,'€ Nirwono said.

Publicly listed developer Modernland Realty, Ciputra Group and Lippo Group are among the developers looking to capitalize on the growing demand for exclusive medical services.

Accuracy matters: A hospital staff member poses for a picture with an MRI machine at Mayapada Hospital. (JP/Nurhayati)

Mayapada Hospital

Following its redevelopment of an older hospital into the modern Mayapada Hospital in Tangerang in 2008, Modernland Realty built another hospital in Lebak Bulus, South Jakarta. That facility, its second, began to serve the public in October 2013.

Mayapada Group chairman Dato Sri Tahir said that the growing number of upper-market demand in Jakarta prompted the company to diversify into healthcare services.

'€œRunning large property development projects, especially healthcare buildings, is a real advantage,'€ he said.

Major property developer Ciputra Group has also displayed a keen interest in developing and sustaining a chain of hospital facilities.

Ciputra'€™s first hospital opened in 2011 at the company'€™s Citra Raya residential area in Tangerang, Banten.

'€œIn the near term, we plan to construct a new hospital in Citra Garden, West Jakarta,'€ said PT Citra Raya Medika president director Cakra Ciputra, who manages the Ciputra Hospital.

Ciputra Group has aired hopes to build 30 hospitals, all within their own real estate development complexes.

Meanwhile, PT Ciputra Development director Tulus Santoso disclosed earlier the company'€™s intention to construct between five and 10 hospitals over the next five years, amounting to one or two new hospitals per year. '€œEach hospital will require an investment of roughly Rp 150 billion,'€ he said.

Ciputra Development is a unit within the Group. It is the key shareholder in the Group'€™s other units, PT Ciputra Property (56.25 percent) and PT Ciputra Surya (62.66 percent).

'€œAfter five years, we expect our hospital businesses to constitute approximately 10 percent of our earnings,'€ he said.

In the first half of the year, Ciputra Development generated 87.8 percent more year-on-year earnings, or equal to some Rp 2.4 trillion in total revenues. Net profits rose 152.7 percent annually to Rp 669.5 billion.

Tulus added that the developer had entered the hospital business to expand the variety of facilities present at its residential estates, noting that each hospital would have at least 100 beds.

'€œThis is also our way of capitalizing on available land,'€ he said.

The Lippo Group is known as the first major property developer to start a healthcare business, which it did under the Siloam hospital brand name.

The group'€™s first hospital was opened in 1996, inside the Lippo Karawaci development in Tangerang.

In 2002, the group built its second hospital, the Lippo Cikarang.

As of 2005, the group had built two hospitals outside property development areas; Kebon Jeruk in 2003 and Siloam Semanggi in 2005. In addition, the group acquired Budi Mulia in Surabaya, rebranding it as Siloam Surabaya in 2004.

'€œWe are planning to build five new hospital facilities in 2014,'€ said PT Siloam International Hospital corporate secretary Budisuharto.

The first private hospitals in Indonesia began to appear in the mid-eighties, with the establishment of Pondok Indah hospital (RSPI) in December of 1986.

The hospital boasts premium healthcare services and strives to attract clients who would otherwise seek medical care in places like Singapore.

Since then, other high quality hospitals have emerged, including Metropolitan medical in August 2007, followed by Medistra in 1991.