Lippo Explores Healthcare Investment Opportunities in Indonesia’s New Capital City (IKN)

JAKARTA, March 14, 2023 — PT Siloam International Hospitals Tbk (SILO), a subsidiary of PT Lippo Karawaci Tbk, is exploring investment opportunities in the healthcare sector following the issuance of Government Regulation (PP) No. 12 of 2023 on Business Licensing, Ease of Doing Business, and Investment Facilities for Business Actors in the Nusantara Capital City (IKN).

John Riady, President Commissioner of SILO, stated that the new capital city presents a promising opportunity for healthcare development and investment in Indonesia, especially as the country remains the largest and most dynamic economy in ASEAN.

“We appreciate the issuance of Government Regulation No. 12/2023. The government has created a legal framework to support ease of doing business, including land rights and tax holiday facilities. I am optimistic that this regulation will provide legal certainty, broader opportunities, and increased private sector participation in accelerating the development of IKN,” said John in a written statement received in Jakarta on Tuesday (14/3/2023).

Currently, PT Siloam International Hospitals Tbk operates 41 hospitals and numerous clinics across 23 cities in Indonesia. The network includes 14 hospitals in Greater Jakarta (Jabodetabek), 7 in Java, 5 in Sumatra, 6 in Bali and Nusa Tenggara, 3 in Kalimantan, 5 in Sulawesi, and 1 in Maluku, supported by 2,700 general practitioners and specialists, as well as over 15,000 nurses and supporting staff.

John emphasized that PP No. 12/2023 has been highly anticipated by both domestic and foreign investors. Moreover, the Ministry of Investment/BKPM has launched a digital spatial planning system (RDTR) and is offering investment facilitation through the Online Single Submission (OSS) system.

“We are ready to contribute to supporting the government’s vision of developing IKN in harmony with the natural landscape of East Kalimantan,” John added.

The development of IKN, located in North Penajam Paser Regency, East Kalimantan, is planned across five phases: Phase I (2022–2024), Phase II (2025–2029), Phase III (2030–2034), Phase IV (2035–2039), and Phase V (2040–2045). The total investment needed is estimated to be around IDR 500 trillion.

“President Jokowi has said that the IDR 500 trillion investment cannot be covered solely by the state budget. The government needs support. We are ready to play our part through private sector investment. Since early 2023, we have begun exploring opportunities to invest in healthcare within the IKN,” John explained.

According to him, healthcare is a basic infrastructure that must be prioritized. A strong and reliable healthcare system in IKN will play a crucial role in ensuring the safety and comfort of its future residents.

Under PP No. 12/2023, the healthcare sector is granted corporate income tax incentives of up to 100% for 30 years for investors who invest between 2023 and 2030.

Additionally, the regulation provides a wide range of business licensing conveniences, land use permissions, and zero fees for building operation permits and certifications.

“Lippo has always supported the government’s strategies to boost national economic development and improve the quality of public healthcare. The IKN project is a major government initiative toward building a healthier and more prosperous society,” John concluded.