No Rest for Hospital Bed Manufacturer
No Rest for Hospital Bed Manufacturer
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JAKARTA - Increased investments in RI hospitals and clinics along with ambitious plans from private and government sectors to meet the country’s rapidly growing middle class healthcare needs, are pushing the production capacities of made in Indonesia medical equipment suppliers.
According to Pete Read of Singapore-based Global Growth Markets (GGM) the number of private hospitals in Indonesia has increased at 50 percent a year in recent years, reaching more than 700 throughout the country with a total of nearly 1,300 that factors in government hospitals. At the center of the domestic healthcare boom are the local medical suppliers and manufacturers many on display at the recent Hospital Expo held Oct. 19-22 at the Jakarta Convention Center.
Local exhibitors like D&V Medika, a leading medical supply company and one of Indonesia’s top three hospital bed manufacturers, are witnessing substantial demand for its electrical and manual beds that often leave the supplier in short supply.
Indonesia’s current total number of hospital beds is a mere 280,000, considered one of the lowest bed-to-population ratios in countries worldwide. According to the WHO statistics unit there is no global norm for the density of hospital beds in relation to total population however local bed requirements are expected to grow in the tens of thousands by 2020.
“We always require to maintain an even distribution of beds to our ever increasing customer base, and with such demand it’s a continuous juggle,” said D&V Medika Managing Partner, Vincent Lianto, who has headed the company since 1997 with its offices and bed factory in Tangerang and Bali.
“We are also mindful of stock allocation for government hospitals, which comprise 60 percent of the total hospitals in the country all while meeting the needs of new players in the market,” he said.
Indian-based hospital group, Apollo Hospitals, is considering setting up telemedicine centres and hospitals and Malaysia’s IHH Healthcare recently announced they will venture into Indonesia as part of their expansion strategy.
The current spike in the Indonesian healthcare industry according to GGM is the biggest in the world apart from China and India. Local private hospital groups are led by Siloam Hospitals currently operating 20 in the country with a total of 40 hospitals planned by the end of 2017. Kalbe Farma, one of Indonesia’s largest pharmaceutical companies, will open 20-25 private clinics each year in Jakarta over the next five years while Columbia Asia will open three hospitals in Semarang.
Other Indonesian hospital brands increased their investments in 2015 including Mitra Keluarga, Karya Sehat Tbk and groups like Omni, Mayapada and Sinar Mas as well as Prodia for its diagnostic laboratories.
According to EY Indonesia the country faces a significant shortage of hospitals with rural areas being the most severely underserved. Second-tier cities, such as Palembang or Batam, with comparably low bed-to-population ratios, provide good opportunities for investments.
One example is the Grage Group, which is planning to build a hospital in Cirebon in partnership with Pondok Indah Hospital. A recent EY report shows bigger supply-demand gaps and lower land acquisition costs in rural areas compared to first-tier cities such as Jakarta. Timah, a state-controlled tin manufacturer and exporter also entered the healthcare industry in 2015 through its subsidiary Rumah Sakit Bakti Timah which owns six hospitals in the Bangka Belitung province.
“We don’t expect the bed occupancy wave to stop soon as it’s been driven by the introduction of JKN and that’s for all people not just those in major city centers. Together with the supply-demand gap, establishing hospitals in rural areas is proving to be an attractive proposition,” said D&V’s, Vincent Lianto.
According to Pete Read of Singapore-based Global Growth Markets (GGM) the number of private hospitals in Indonesia has increased at 50 percent a year in recent years, reaching more than 700 throughout the country with a total of nearly 1,300 that factors in government hospitals. At the center of the domestic healthcare boom are the local medical suppliers and manufacturers many on display at the recent Hospital Expo held Oct. 19-22 at the Jakarta Convention Center.
Local exhibitors like D&V Medika, a leading medical supply company and one of Indonesia’s top three hospital bed manufacturers, are witnessing substantial demand for its electrical and manual beds that often leave the supplier in short supply.
Indonesia’s current total number of hospital beds is a mere 280,000, considered one of the lowest bed-to-population ratios in countries worldwide. According to the WHO statistics unit there is no global norm for the density of hospital beds in relation to total population however local bed requirements are expected to grow in the tens of thousands by 2020.
“We always require to maintain an even distribution of beds to our ever increasing customer base, and with such demand it’s a continuous juggle,” said D&V Medika Managing Partner, Vincent Lianto, who has headed the company since 1997 with its offices and bed factory in Tangerang and Bali.
“We are also mindful of stock allocation for government hospitals, which comprise 60 percent of the total hospitals in the country all while meeting the needs of new players in the market,” he said.
Indian-based hospital group, Apollo Hospitals, is considering setting up telemedicine centres and hospitals and Malaysia’s IHH Healthcare recently announced they will venture into Indonesia as part of their expansion strategy.
The current spike in the Indonesian healthcare industry according to GGM is the biggest in the world apart from China and India. Local private hospital groups are led by Siloam Hospitals currently operating 20 in the country with a total of 40 hospitals planned by the end of 2017. Kalbe Farma, one of Indonesia’s largest pharmaceutical companies, will open 20-25 private clinics each year in Jakarta over the next five years while Columbia Asia will open three hospitals in Semarang.
Other Indonesian hospital brands increased their investments in 2015 including Mitra Keluarga, Karya Sehat Tbk and groups like Omni, Mayapada and Sinar Mas as well as Prodia for its diagnostic laboratories.
According to EY Indonesia the country faces a significant shortage of hospitals with rural areas being the most severely underserved. Second-tier cities, such as Palembang or Batam, with comparably low bed-to-population ratios, provide good opportunities for investments.
One example is the Grage Group, which is planning to build a hospital in Cirebon in partnership with Pondok Indah Hospital. A recent EY report shows bigger supply-demand gaps and lower land acquisition costs in rural areas compared to first-tier cities such as Jakarta. Timah, a state-controlled tin manufacturer and exporter also entered the healthcare industry in 2015 through its subsidiary Rumah Sakit Bakti Timah which owns six hospitals in the Bangka Belitung province.
“We don’t expect the bed occupancy wave to stop soon as it’s been driven by the introduction of JKN and that’s for all people not just those in major city centers. Together with the supply-demand gap, establishing hospitals in rural areas is proving to be an attractive proposition,” said D&V’s, Vincent Lianto.
(rnz)
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