A doctor walks pass a row of beds inside the intensive care unit of Siloam's Covid-19 hospital in Lippo Plaza Mampang, South Jakarta on March 30, 2020. (JG Photo/Yudha Baskoro)

Lippo Karawaci to Benefit from Siloam's Stable Performance Forecast

OCTOBER 13, 2021

Jakarta. A recent study projected that Siloam International Hospitals —Indonesia’s largest hospital operator— would witness a relatively stable revenue and earnings before interests, taxes, depreciation, and amortization or Ebitda, in the coming years. 

And this would give a boost for Siloam’s parent company and property giant Lippo Karawaci.


In a recent study, Citigroup Securities Indonesia analyst Felicia Asrinanda Barus predicted that Siloam’s revenue throughout 2021-2023 would have a compound annual growth rate (CAGR) of 6 percent per year, with a gross margin of 45 to 47 percent.

This estimation is more conservative, due to the decline in Covid-19 cases starting in the second semester of 2021.

"Siloam’s revenue, gross margin, and Ebitda are still quite positive,” according to the study.

Siloam’s Ebitda margin reached 29 percent during this year's first semester. It will likely stand at 26 to 27 percent throughout 2021-2023. Healthcare services for non-Covid patients are contributing to this stable Ebitda margin.

In the first semester of 2021, Siloam booked a revenue of Rp 3.81 trillion (about $268 million), up about 51.7 percent compared to the Rp 2.51 trillion in the same period last year. Siloam’s net profit also reached Rp 292 billion. 

Lippo Karawaci recorded a total revenue of Rp 7.23 trillion, according to its June 2021 financial report. And about 52.72 percent or Rp 3.81 trillion came from its healthcare business. As its major shareholder, Lippo Karawaci holds 55.4 percent of Siloam’s shares and thus will benefit from Siloam’s performance. 

Siloam currently operates 40 hospitals with a total capacity of 3,726 beds.

According to Lippo Karawaci chief executive officer and Siloam president commissioner John Riady, the country’s healthcare industry still has great potential for growth. Indonesia currently only has 1.1 hospital beds per 1,000 people.

“Whereas in neighboring countries such as Vietnam and Malaysia, the hospital bed ratio per 1,000 inhabitants is about 1.7 times, and 1.8 times respectively. The ongoing Covid-19 pandemic has shown how great the need for healthcare facilities is,” John said.

“For this reason, Lippo Karawaci through Siloam will continue to expand. We have a mission to meet Indonesia’s healthcare needs and of course, are committed for continuous growth,” he added.