Siloam Launches Massive Expansion, Plan to Build and Acquire Hospitals

BY :VANESHA MANUTURI

MAY 19, 2015

Jakarta. Siloam International Hospitals, the health care unit of property developer Lippo Karawaci, is slated to invest up to Rp 1.67 trillion ($76.2 million) to add more hospitals and clinics this year in another bid to tap into growing demand for health services in Indonesia.

Anang Prayudi, director for network development in Siloam International Hospitals, said that the company is planning to open six new hospital this year.

“Our expansion did face some hiccups last year due to various reasons, such as permits and the political elections, but we’re now seeking to speed up expansion this year, as well as next year,” Anang told reporters in Jakarta on Tuesday.

Among the six new hospitals, he said, the company is currently building four hospitals in Yogyakarta; Labuan Bajo, East Nusa Tenggara; Bau Bau, Southeast Sulawesi and Jember, East Java.

The remaining two new hospitals will be acquisitions.

Anang noted that the investment to build one hospital averages at about $25 million, which totals the company’s investment to roughly $100 million.

“We’ve allocated about Rp 250 billion for the acquisitions in total. We’re eying deals in Java and Kalimantan,” he said.

On top of the six additional hospitals, Anang also said that Siloam will launch four clinics — under the brand “Siloam Express” — this year.

Four new clinics will be located in Surabaya, East Java, Jakarta, as well as Bekasi, West Java, according to the director. Each clinic cost about $2 million in investment, he said.

The so-called “Siloam Express” clinics, according to Anang, will generally have roughly 40 beds, offering primary and secondary care to patients, as well as a strong emergency service.

“Hopefully, we will open two Siloam Express in Bekasi by October, and the remaining two will be opened by November or December,” said Anang, adding that the new venture is expected to contribute up to Rp 40 billion to the company’s revenue.

This year’s expansion plan is a part of Siloam’s goal to own up to 50 hospitals, caring for up to 15 million patients, by 2017. The company also plans to have 24 clinic units by 2017.

Siloam, which currently manages 20 hospitals across Indonesia, aims to book up to Rp 4.9 trillion in revenue this year, which is 48 percent that Rp 3.3 trillion last year.

The Jakarta Globe and GlobeAsia are affiliated with Siloam through the Lippo Group.

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