Indonesian Political, Business & Finance News

Foreigners urged to invest in hospitals

Foreigners urged to invest in hospitals

JAKARTA (JP): Minister of Health Sujudi urged foreign investors yesterday to help in the government's effort to build more hospitals in the country.

While he made no mention of specific incentives to foreign investors, Sujudi said hospitals in Indonesia must employ Indonesian staff as far as it is possible.

Speaking during the installation of new commissioners and directors at state companies under his charge, the minister said he would not dissuade those foreigners interested only in hospitals catering to the wealthy.

This would mean that in the future, wealthy Indonesians will not have to go overseas for medical treatment, he said.

The Gleneagles Hospital in Singapore was the first foreign institution to set up a hospital in Indonesia, with the construction of the PT Siloam Gleneagles Hospital in Tangerang, just outside of Jakarta, in cooperation with Indonesia's property developer Lippoland.

Sujudi said Indonesia needs many more hospitals, which the government alone cannot be expected to build.

The presence of foreign hospitals in Indonesia would also more mean more job opportunities in the country. He added that more modern hospitals would force Indonesian staff to improve their skill and expertise.

The government has opened up the door to foreigners to invest in the hospital sector under joint ventures with Indonesian companies. Such hospitals are subject to the government requirement to set aside at least 25 percent of their beds for the poor, free of charge.

The minister announced the change in the legal status of Perum Indonesia Farma, the state-owned drug manufacturer, into a full fledged limited company with the new name PT Indonesia Farma.

"With the new status the company can use its profits to finance its expansion," Sujudi said.

He also installed Indo Farma's new board of commissioners and directors.

The board of commissioners is headed by Wisnu Katim, the Director of Food and Drug Supervision at the Ministry of Health, while the board of directors is headed by Gunawan Pranoto.

Sujudi also installed Prijono Ashari as finance director of PT Askes, the state health insurance company, replacing Manan Prasojo, who has retired.

Responding to reporters' questions, Sujudi said he expected Indonesia's exports of medicines to increase to $40 million from about $25 million.

He denied the suggestion that the prices of medicines in Indonesia are among the highest in the Asia-Pacific region as claimed by the Indonesian Consumer Foundation. "Not all drugs here are expensive. Only some medicines which have trademarks or are produced by foreign manufacturers," he said. (31)

View JSON | Print