To further tap into fast growing opportunities in Medan’s medical services sector, publicly listed clinical laboratory firm PT Prodia Widyahusada has opened the largest clinical lab in Sumatra Island, along with a new wellness center.

The laboratory, renovated from a 41-year-old facility known as Grha Prodia, can perform around 200 medical tests, from basic blood tests to complex heart function examinations, said Prodia president director Dewi Muliaty.

“We see surging demand for one-stop health tests and wellness services in Medan. Now, people here do not have to go abroad for medical tests,” she said during the launch of the laboratory on Saturday.

Prodia’s latest move is in line with its business strategy to expand in big cities outside Jakarta as it seeks to bank on greater demand for health check-ups and preventive medical measures in Indonesia, home to more than 260 million people.

More than half of the population belongs to the emerging middle class, which is more concerned with health, and therefore, requires better health care services.

“We cannot prohibit consumers from receiving medical treatment abroad, but at least, before they visit hospitals there, they can take medical tests here at Prodia,” Dewi said.

Prior to Medan, Prodia opened similar health and wellness centers in Surabaya last July, and in Makassar last December.

It has begun the construction of another health and wellness center in Semarang, Central Java, scheduled for completion in 2019. The development of each facility costs between Rp 80 billion (US$5.92 million) and Rp 100 billion.

Dewi said the company would also set up five branches soon, although not as health and wellness centers.

The head of Prodia for North Sumatra and Aceh provinces, Hermin Tikumaqdika, said that the upgraded facility would enable the Medan branch to accept more customers. Its average number of customers in Medan increased by 10 percent from last year to 300 people daily, she said.

“In the last four years, we recorded a 5 percent growth in the average number of patients per year. Thanks to the upgraded facility, we may now see a 10 percent surge,” Hermin said.

Like many other middle-and upper-class Indonesians, a large number of Medan residents often seek medical treatment overseas, particularly in neighboring country Malaysia.

In addition to affordability and quality, Malaysia is an increasingly popular choice due to its
proximity to the North Sumatra capital.

North Sumatra Governor Tengku Erry Nuradi welcomed Prodia’s move to gain a foothold in Medan, adding that 500 to 1,000 people flew daily from Medan to Penang and Kuala Lumpur in Malaysia, 80 percent of whom traveled for medical purposes.

Hospitals in Medan were improving and modernizing, he claimed, but patients often had to wait a month for quality medical treatment because of high demand.

“The excess demand for medical treatment is an opportunity for hospitals and medical laboratories to expand their business. Hopefully, people in Medan will later prefer using domestic medical services, and we can attract medical tourists from Malaysia in the future,” he said.

Since the 1970s, a large number of Malaysian medical students have been pursuing undergraduate medical degrees in North Sumatra University (USU), and many of them continued their higher education in the United Kingdom before practicing as doctors.

Founded in Surakarta, Central Java, in 1973, Prodia now operates 131 branches and 143 hospitals across 109 cities in 31 provinces. It employs no less than 3,700 people and serves 2.5 million patients annually.

It has allocated Rp 400 billion in capital expenditure (capex) to purchase new equipment and set up new branches this year, and will be spending Rp 300 billion to upgrade existing branches next year.