Market Research Reports - Ken Research Major Companies Hospitals Market Indonesia

Indonesia Hospital Market is expected to Reach USD 14 Billion by 2022: Ken Research
Indonesia hospital market segment (by public & private hospitals, by general & specialty
hospitals and by region), competitive landscape of major players in the Indonesia hospital
market, and covering competitive landscape of major hospitals including Mitra Keluarga
Karyasehat Tbk Pt, Siloam Hospitals, PT Sejahteraraya Anugrahjaya, Sarana Meditama, Rumah
Sakit Pondok Indah, Surya Husadha General Hospital, Jakarta Eye Center, Rumah Sakit Dr Oen
Surakarta, Pertamedika (Rumah Sakit Pusat Pertamina), Kaish Ibu Hospital, Hermina Hospital
Group, Awal Bros Hospital Group and Sari Asih. The report concludes with market projection for
future and analyst recommendations highlighting the major opportunities and cautions.
Increase in private hospitals has contributed significantly in the growth of hospital market. High
quality of healthcare and less waiting time are the factors contributing to the growth of private
hospitals beds.
Siloam Hospitals has the largest hospital network in the country. Public sector hospital has the
larger share in terms of number of hospitals in 2017.
Indonesia is expected to observe 1.5 beds per 1,000 people by 2019 with the entry of several
private hospital and increase in the capacity of number of beds in the existing ones.
Single specialty or multi-specialty hospitals in the country are planning to invest in advanced
medical devices to provide tertiary or super specialty treatment to the patients. For instance,
Mandaya Hospital expects to see sharp revenue growth i.e. 30.0% y-o-y rise in 2018 as the
hospital will invest in new equipment that should boost demand. The hospital market is
expected to rise owing to the government support in the industry. Before 2017 foreigners were
only allowed to invest in specialist hospital and, not in general hospitals. However, after the
government (through Presidential Regulation No. 44/2016) allowed foreigners to have a
maximum stake of 67.0% in general hospitals (for ASEAN investors the maximum figure is
70.0%) FDI has started to rise rapidly. Foreign investments rose from USD 0.2 million in the year
2015 to USD 0.8 million in the year 2016. The foreign investment further increased to USD 14.3
million in the first half of 2017. The market expects higher growth potential in Tier I and Tier II
cities due to larger demand supply gap and lower land acquisition cost.
Rising focus on high revenue intensity streams which includes secondary care, tertiary care and
quaternary care and comprehensive health screening programs to increase contribution from
outpatients coupled with elevating prevalence of chronic and lifestyle diseases will propel the
Indonesia hospital market revenue in future. One of the important issues for the hospital
market in Indonesia is the lack of qualified physicians and nurses in the hospitals located in the
rural areas due to low standard of nursing education in the country.