Siloam Hospitals From Lippo Group Continues To Develop Health Industry, Subsidiary Of Conglomerate Mochtar Riady: It Is Important For Indonesia To Become A Developed Country

Siloam Hospitals Kebon Jeruk, Jakarta. (Photo: Doc. Siloam Hospitals)

JAKARTA - Property developer, PT Lippo Karawaci Tbk (LPKR) is committed to continuing to develop the healthcare industry in Indonesia. In this development, the company from the Lippo Group did so through the hospital manager, PT Siloam International Hospitals Tbk (SILO).

Lippo Karawaci is the main shareholder of Siloam International Hospitals with a 55.4 percent stake as of August 3, 2021. Lippo Karawaci's Chief Executive Officer (CEO) John Riady explained, the healthcare industry is one of the most important industries or sectors and needs to be developed in Indonesia.

"This is done if Indonesia wants to advance further into a middle-income, advanced, and so on. Moreover, Indonesia's economy is expected to grow and the need for health facilities will be higher," said the son of conglomerate Mochtar Riady in a written statement, Tuesday 14 September.

John Riady, who also serves as President Commissioner of Siloam Hospitals, further said that the potential for the domestic healthcare industry to develop is still very high. He detailed that in 2019 alone, spending in the health sector compared to GDP in Indonesia only covered 3.1 percent.

"This figure is below Malaysia which reached 3.9 percent, Singapore 4.7 percent, and China 5.2 percent. We believe the ratio of health expenditure from 3.1 percent will slowly rise to 4 percent to 5 percent in line with the increase Indonesian economy," he said.

On the other hand, he continued, the supply of hospital beds in Indonesia is still minimal with a ratio of 1.1 beds per 1,000 population. In neighboring countries such as Vietnam and Malaysia, the ratio of hospital beds per 1,000 inhabitants is 1.7 times and 1.8 times, respectively.

The current COVID-19 pandemic, said John, also shows the high need for health facilities. Therefore, Lippo Karawaci through Siloam will continue to expand.

"We have a mission to meet healthcare needs in Indonesia, and of course we are committed to continuing to grow," he said.

For information, Siloam International Hospitals achieved revenue of Rp3.81 trillion in the first semester of 2021, up 51.7 percent year on year (yoy) from the previous Rp2.51 trillion in the first semester of 2020, with a net profit of Rp291.54 billion.

Siloam International Hospitals has the largest hospital network in Indonesia with a portfolio of 40 hospitals in 29 cities. Siloam Hospitals has a total bed capacity of 3,726 units.