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Jakarta Post

Government to complete hospital holding company establishment by December

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Tue, February 11, 2020   /   12:37 pm
Government to complete hospital holding company establishment by December A doctor looks through medical records with a dialysis machine in a hospital room. (Shutterstock/Bannafarsai_Stock)

The State-Owned Enterprises (SOEs) Ministry is set to complete the establishment of a hospital holding company by December.

Minister Erick Thohir said on Monday that the holding company would be led by Pertamina’s subsidiary, PT Pertamina Bina Medika (Pertamedika IHC), and would gather 63 state-owned hospital companies.

He said the holding company would eventually have 6,500 beds with an estimated revenue of Rp 5.6 trillion (US$407.6 million) and earnings before interest, tax, depreciation and amortization (EBITDA) of Rp 510 billion.

“After the establishment, total revenue could increase to Rp 8 trillion,” Erick told the press in Jakarta, adding that the holding company would control 25 percent of the hospital market share in the country.

Other than creating growth in the hospital business, the hospital holding company will allow state-owned firms to focus on their core business, he said.

Currently, several state-run firms such as energy holding firm Pertamina, ship operator PT Pelayaran Nasional Indonesia (Pelni) and steelmaker PT Krakatau Steel have their own hospital subsidiaries.

The first phase of the holding company’s establishment, which will merge Pertamedika with Pelni’s hospital subsidiaries, is expected to be completed in June. The action will continue with other state-owned firms’ hospitals afterward.

Upon the completion, Erick said the ministry would be open to taking Pertamedika public so that the company could find strategic partners to help expand the holding company’s business.

“The partnership must also create an added value for state-owned companies,” he said, expressing hope that the holding company could provide adequate health security for all Indonesians in the future.

“Right now, about 58 percent of our population is at their productive age but 20 to 30 years from now they will grow old, so we need to prepare to provide appropriate health security from now,” he said.