With a Mission to Fulfill Indonesia's Healthcare Needs, Siloam Implements Four Strategic Pillars

Jakarta, March 30, 2023 – PT Siloam International Hospitals Tbk. (SILO), a subsidiary of PT Lippo Karawaci Tbk. (LPKR) in the healthcare services sector, has established four key strategic pillars to enhance its corporate performance. One of these is Core Growth, which emphasizes business focus through partnerships, operational efficiency and effectiveness, and the development of innovations to improve patient access.

The second pillar, Clinical Programs, focuses on building comprehensive and holistic care clinics for patient treatment. The third pillar, Network Expansion, involves optimizing the utilization of existing inpatient capacity and selectively constructing new hospitals. The fourth pillar, Digital Health, reflects SILO’s commitment to developing digital platforms to enhance patient experience and interaction.

These four strategic growth pillars support initiatives in revenue generation and cost management. Under the revenue initiative, SILO has implemented standardized pricing packages across its hospital network. Currently, SILO operates 41 hospitals—15 in the Greater Jakarta area (Jabodetabek) and 26 across Java, Sumatra, Kalimantan, Sulawesi, Bali, Nusa Tenggara, and Ambon. In addition, 66 Siloam Clinics are in operation.

To further increase revenue, SILO has automated its sales teams and streamlined patient service processes. As of Q3 2022, Siloam’s digital channels accounted for 18% of all outpatient visits. SILO also remains committed to improving efficiency in BPJS Kesehatan service delivery, maximizing equipment utilization and return on investment, and optimizing space usage within hospitals.

On the cost management side, SILO is consolidating suppliers, optimizing operational expenditure (OPEX), streamlining capex investment review and approval processes, and improving inventory planning and management.

Group CEO of LPKR and President Commissioner of SILO, John Riady, stated that LPKR through SILO is committed to continuously developing Indonesia’s healthcare industry.

“Healthcare is a crucial sector in Indonesia that must be developed. With a growing economy and rising demand for healthcare services, LPKR through SILO will continue to expand. We are on a mission to meet Indonesia’s healthcare needs and are fully committed to sustained growth,” John said.

As reported, in Q3 2022, SILO recorded revenue of IDR 5.4 trillion, EBITDA of IDR 1.4 trillion, and net profit of IDR 457 billion. SILO also posted its highest number of Inpatient Days and Outpatient Visits in ten quarters. In the first nine months of 2022, inpatient days rose by 8.3% to 587,617 days, up from 542,772 days in the same period of 2021. During the same period, SILO served over 2.2 million outpatients, a 32.2% increase compared to the first nine months of 2021.