The Indonesia Investment Authority (INA) and Hong Kong-based property firm Swire Pacific Limited have completed an investment in Indonesian state-owned hospital chain PT Pertamina Bina Medika IHC (Pertamedika IHC), according to an announcement.
The transaction follows a strategic partnership agreement signed at the end of last year.
While the Indonesian wealth fund did not disclose the amount of the investment, DealStreetAsia reported in November last year that the deal was valued at around $100-200 million, according to Indonesia’s Vice Minister of State-Owned Enterprises, Kartika Wirjoatmodjo.
The new investment will allow IHC to deliver high-quality healthcare services in Indonesia and contribute to building an inclusive and sustainable health ecosystem, highlighted by the establishment of two new hospitals: Bali International Hospital and Panorama Balikpapan Hospital, according to Lia G Partakusuma, acting director of IHC.
Established in 1977, Pertamedika IHC is a subsidiary of Pertamina, the country’s largest state-owned firm. In 2016, the Indonesian government initiated a consolidation of hospitals owned by state-owned entities, designating IHC as the holding company.
IHC is currently majority-owned by Pertamina, with minority stakes held by other state-owned enterprises (SOEs), including port company PT Pelabuhan Indonesia, PT Perkebunan Nusantara, PT Timah Tbk, PT Krakatau Steel, PT Krakatau Sarana Infrastruktur, PT Krakatau Bandar Sumatra, and PT Pertamina Pedeve Indonesia.
As of December 2023, IHC managed 36 hospitals and 68 clinics. It recorded total revenues of approximately 5.72 trillion rupiah ($369.35 million) in 2023, compared with 4.97 trillion rupiah in 2022. It posted net profits of 300 billion rupiah in 2023, compared with 184.2 billion rupiah in the previous year.
Pertamedika IHC is one of INA’s investments in the healthcare industry. Additionally, INA collaborated with China’s Silk Road Fund (SRF) to acquire a 40% stake in Indonesian state-owned pharmaceutical company PT Kimia Farma’s subsidiary, Kimia Farma Apotek, for $120 million.
In 2023, INA more than doubled its investments despite political and economic uncertainties, according to its annual report. The report noted that INA and its co-investors disbursed $1.9 billion in 2023—a 152.6% year-on-year increase. That year, INA made six investments across nine projects in the health, infrastructure, digital infrastructure, geothermal, and logistics sectors.
Meanwhile, Swire Pacific’s strategy is focused on Greater China and Southeast Asia, where it aims to grow its core businesses in property, beverages, and aviation, along with exploring new growth areas such as healthcare.
Swire Pacific is the largest shareholder in two listed companies in Hong Kong: Swire Properties Limited and Cathay Pacific Airways Limited. In Indonesia, the company already has a commercial presence through its investment in a luxury residential development in Savyavasa, South Jakarta.
