JAKARTA, 6 April 2022 – Two regencies in West Java have been selected as the location for bankable feasibility studies for the development of new hospitals. Supported by the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) Economic Cooperation Program Katalis, the activity valued at AUD 594,000 (approximately IDR 6.3 billion) seeks to catalyse health and economic recovery for West Java residents, address infrastructure needs, and at the same time provide mutual benefits for Indonesian and Australian businesses.

The selection of Karawang Regency and another one to be confirmed in the next few weeks was based on needs identified by the Provincial Government of West Java and a consortium consisting of Sanusa Medika Group (SMG), a joint venture between Aspen Medical and Docta Pty Ltd from Australia, and PT Jasa Sarana, an Indonesian state-owned enterprise. The joint venture is collectively known as Sanusa Medika Hospitals (SMH). In both locations, the project seeks to increase hospital bed capacity and health facilities to meet the growing needs of the population. If successful, Sanusa Medika intends to expand and establish an additional 21 hospital facilities across West Java.

“This is a major first step towards realising the partnership potential at the regional level within the Indonesia-Australia Comprehensive Economic Partnership Agreement. The feasibility studies will potentially pave the way for investment in the first two new hospitals, with the possibility of others following in the short and medium term, and overall will contribute to the West Java Health Infrastructure Program. I’m very happy that the ground-breaking of the first of these hospitals will be held in June this year,” said Ridwan Kamil, West Java Governor.

“I am delighted the IA-CEPA Katalis program is supporting feasibility studies for an Australian-Indonesian consortium to develop new hospitals in West Java. This is yet another example of the health and commercial partnerships between Australia and Indonesia, which are going from strength to strength. Through IA-CEPA we look forward to continuing and deepening commercial ties between our two countries in the coming years,” said HE Penny Williams, Australian Ambassador to Indonesia.

The studies are designed to draw a full spectrum of human, industry, commercial, financial, organisational, management and institutional capabilities in both Indonesia and Australia to plan, design, structure, finance, construct, commission and operate hospitals and clinics in West Java. Early analysis suggests each hospital could employ more than 300 health workers and more than 200 non-health workers annually. Given the high demand for services for women, children and reproductive healthcare in the province, the activity will also provide an opportunity for broader healthcare outcomes for women and children.

“The banking feasibility studies for the two new hospitals in West Java have met all our investment criteria. There is a clear commercial benefit from the investment for Australian and Indonesian companies involved in this highly scalable activity. Not only will it create jobs in the health sector, many of which will be for women, this activity also leverages investment for related activities,” said Paul Bartlett, Director of IA-CEPA ECP Katalis.

“Aside from causing a shock to the healthcare system, the pandemic has also led to rising consumer expectations for better healthcare experiences. Through our presence in West Java, we seek to develop a health ecosystem and at the same time deliver world-class standards and innovation to those in need of essential services,” said Dr. Andrew Rochford, President Director and CEO of Sanusa Medika Group.