Hospital operator PT Mitra Keluarga Karyahealth Tbk (MIKA) has prepared IDR 800 billion (US$ 52.8 million) capital expenditure (Capex) in 2023 for adding 3 new hospitals, purchasing medical equipment and improving service quality.
Founded in 1989, Mitra Keluarga has engaged in public health services. With an experience in public health service for over 30 years, the company has operated 29 hospitals. It has 8 subsidiaries, including PT Bina Husada Gemilang with 100% ownership.
Building 3 new hospitals
Mitra Keluarga has allocated a larger Capex in 2023, compared with 2022 which was IDR 750 billion.
“In 2023, we prepare Capex of IDR 800 billion for the construction of new hospitals and also the purchase of medical equipment for existing hospitals as well as for the improvement of the quality and complexity of services,” Head of Investor Relations Aditya Widjaja said on February 8, 2023, as quoted by kontan.co.id.
“As of January 2023, we have operated 29 hospitals, including the new ones in Pamulang, Banten, and in Slawi, Central Java,” he added.
Another new hospital is currently under construction in Grand Wisata housing complex, Bekasi regency, and will be completed in Q4 2023.
The company will also allocate budget for procuring medical equipment for its hospitals. The Mitra Keluarga East Bekasi Hospital now offers services in radiotherapy since January 2023 to help oncology patients.
Widjaja said the Mitra Keluarga Cibubur Hospital opened a Sport Injury Clinic called Mitra Orphys in September 2022, to serve patients with injuries.
Risks in public health industry
There are 2 significant problems in public health services:
- Limited resources: The public health system in Indonesia is struggling to provide adequate resources and facilities to meet the needs of the growing population. This often results in overcrowding in hospitals and a shortage of medical supplies and equipment.
According to Pracpital.com, Indonesia has a shortage of health infrastructure in health service facilities such as hospitals, clinics or community health centers (Puskesmas). The facilities are mostly located on Java Island. The Health Ministry stated that the total number of puskesmas in Indonesia as of December 2021 reached 10,292, consisting of 4,201 inpatient health centers and 6,091 outpatient health centers.
The uneven distribution of hospital and population ratio was due to the accessibility, connectivity and imbalance development across the country. Many remote areas have difficulty reaching access to health facilities due to the distances.
- Shortage of trained healthcare workers: There is a shortage of trained healthcare workers, such as doctors and nurses, exacerbating the challenges faced by the public health system and affecting the quality of care provided.
Health Minister Budi Gunadi Sadikin said that there was a shortage of health workers. Data up to April 2022 stated 586 of 10,373 Puskesmas did not have a doctor.
“A total of 5.65% of Puskesmas do not have doctors. This means we lack of health workers,” he said on April 4, 2022, as quoted by beritasatu.com.
In 2020, Indonesia had the highest medical worker deaths in Southeast Asia due to the COVID-19 pandemic. Health workers were overwhelmed and over exhausted during the pandemic.
Other problems include: the lack of funding, digitalization and poor infrastructure.
