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Local hospital chains step up expansion amid growing healthcare market
Among those that have actively expanded in recent years include Medikaloka Hermina and Mitra Keluarga Karyasehat, which target middle-income patients.
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Banda Aceh Mayor (right) walks to a stage during the opening ceremony of Penang Hospital in Banda Aceh on March 30, 2019. (Courtesy of Banda Aceh administration/-)
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everal hospital chains are expanding their business to further tap into the country’s growing demand for quality healthcare services, which have emerged as one of the most lucrative in the country.
Among those that have actively expanded in recent years include Medikaloka Hermina and Mitra Keluarga Karyasehat, which target middle-income patients.
Hermina, which at present operates 33 hospitals in 21 cities across Indonesia, is building three more hospitals this year and will add four more next year to achieve its target of having 40 hospitals by the end of 2020.
“The three hospitals that are currently under construction are expected to open in the fourth quarter,” Medikaloka Hermina finance and strategic development director Aristo Setiawidjaja said in Jakarta on Monday.
They are located in Kendari, Southeast Sulawesi, in Pekanbaru, Riau, and in Kotabumi, Lampung.
Speaking at a press conference at the Indonesia Stock Exchange (IDX), Aristo said Hermina had recently acquired a hospital in Pekalongan, Central Java.
The company set aside Rp 800 billion (US$56 million) in capital expenditure (capex) for the acquisition and to finance the construction of new hospitals. Of the total, between Rp 300 billion and Rp 400 billion is in the form of bank loans and the rest is coming from the hospital chain’s own funds. The company spent about Rp 280 billion of the capex in the first half of this year, Aristo added.
