Indonesia: Expansion policy keeps lid on Mitra Keluarga profits

Despite an 8.7% rise in revenues for the year, profits at Indonesian hospital operator Mitra Keluarga slipped 7.1% thanks to the hospital’s acquisition and expansion policy.

Profits for the year were Rp659bn (US$46.3m) on revenues of Rp2.7trn.

“Mitra Keluarga maintained strong growth in terms of revenue, particularly associated with the sales performance of hospitals which have served JKN patients,” said chief executive Rustiyan Oen referring to the national healthcare programme, Jaminan Kesehatan Nasional.

The group is continuing its ambitious expansion policy this year too. It completed the acquisition of Bina Husada and Mutiara Hati Hospitals early this year and plans to open Mitra Keluarga Bintaro and Mitra Keluarga Pratama Jatiasih hospitals by the end of H1.

The brownfield expansion of three Kasih Hospitals should be ready by early 2020 and a second Mitra Keluarga Pratama should open late next year.

Founded in 1989, Mitra Keluarga currently owns and operates 20 hospitals; 14 in Greater Jakarta, four in West Java, three in Surabaya, East Java, and one in Tegal, Central Java.

The group raised Rp4.5 trillion at Rp1,700 per share in its IDX IPO in March 2015 via senior underwriters Morgan Stanley and UBS with Kresna Graha Sekurindo as local underwriter. After the results, its shares traded up 0.5% to Rp1,980.