Hospitals in Indonesia to see brighter business outlook

 27-Mar-15, Tempo

The Head of Research of NH Korindo Securities Indonesia, Reza Priyambada, said that publicly-traded companies in the healthcare and hospital sector is set to see brighter business outlooks, as Indonesians are increasingly becoming more concerned about their health. "The concern over health is not only universal, but also continuous," said Reza

Image: Tempo

An analyst for Investa Saran Mandiri, Hans Kwe, concurs with Reza, and said that hospitals will soon see bigger profit margins as the size of Indonesia's middle classes begin to grow, and their awareness of the importance of their health increases. "Their profits are also supported by government several government initiatives, which includes The Social Security Agency's healthcare program [BPJS Kesehatan]," said Hans to Tempo on Thursday, March 26, 2015.

According to Hans, hospital managers need to look deeper into the quality of the healthcare services that their institutions provide, especially since many Indonesians still perceive Singapore's and/or Malaysia's healthcare services to be far superior compared to what is locally available. "It is very important to foster and maintain customer confidence and trust in this sector in particular," Hans said.

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