Health Law Enacted, John Riady: Lippo Group Ready to Support Government’s Vision

Jakarta, 13 July 2023 - The ratification of the Health Bill into an Omnibus Law is believed to significantly enhance the quality of Indonesia’s national healthcare system. The new law focuses on accelerating the development of medical personnel and ensuring the equitable distribution of quality healthcare services.

This was conveyed by John Riady, President Commissioner of PT Siloam International Hospitals Tbk (SILO). According to him, the spirit of the newly enacted Health Law provides the government with a framework to strengthen the national healthcare system through various policy implementations.

“If we look at it comprehensively, the regulation shows that the government seeks to increase both the number and quality of healthcare workers, while also ensuring equitable access to quality healthcare services across regions,” said John.

He noted that the national healthcare system had been tested during the Covid-19 pandemic, which highlighted areas that still require significant improvement.

“We discovered that we lack sufficient healthcare workers. We also lack adequate healthcare facilities in many regions,” John added.

Another crucial concern, he pointed out, is the shortage of medical specialists in Indonesia, which has led many Indonesians to seek treatment abroad. “We are losing valuable foreign exchange to neighboring countries due to this shortage,” he emphasized.

Regarding some of the controversies surrounding the new regulation, John stated that all parties have the opportunity to submit feedback or challenge the law through formal legal channels.

“There is still room for correction—whether through input to the Ministry of Health or judicial review by the Constitutional Court. This is the beauty of democracy: we have access to proper legal mechanisms,” he said.

John also addressed concerns among healthcare professionals regarding the potential for foreign medical personnel entering the country, stressing that the issue should not be overblown.

“Strict and selective regulatory measures are in place for any foreign healthcare professionals entering Indonesia,” he concluded.

“There is a government-controlled verification and grading process. On the other hand, our local healthcare professionals are equally competent, with unique skill sets tailored to treating domestic patients amid infrastructure limitations,” added John Riady, President Commissioner of PT Siloam International Hospitals Tbk (SILO).

However, he emphasized that the primary issue lies in the limited number of healthcare workers, especially medical specialists.

“We hope this new Health Law serves as an effective path to increase the number of specialists. Eventually, once we are fully prepared, there may no longer be a need to rely on healthcare professionals from abroad,” he explained.

The enactment of the Health Law has also been positively received by the market. The IDX Healthcare Index, a benchmark for the healthcare sector, rose 1.45% during the first trading session and continued its climb to 2.88% by the market’s close on Tuesday, July 11, 2023, gaining 42.66 points to 1,522.4.

Meanwhile, SILO’s stock rose 9.89% at the opening of trading on Wednesday, July 12, jumping 180 points to Rp2,000 per share. On the previous day, trading volume reached 18.01 million shares with a transaction value of Rp35.3 billion. SILO ranked sixth on the Top Gainers list for Tuesday (July 11), with nearly a 10% increase in share price.

John reiterated SILO’s commitment to supporting the government in improving equitable access to quality healthcare. Currently, SILO operates 41 hospitals and 66 clinics across Indonesia.

“We are committed to continuously expanding and enhancing our healthcare services every year,” said John. He also emphasized the role of Yayasan Pendidikan Pelita Harapan (YPPH) in strengthening healthcare education, one of the most urgent national needs. “Through our faculties at Universitas Pelita Harapan, we are educating doctors up to the specialist level, as well as training qualified nurses,” he concluded.