Jakarta. KB Bank and Mayapada Healthcare signed Thursday an agreement for a credit facility partnership worth over Rp 700 billion (around $42.6 million).

According to a press release, the facility will support the construction of Mayapada Hospital units in Indonesia’s new capital Nusantara, and the East Jakarta district of Cakung. The credit facility from KB Bank --also known by its ticker code BBKP-- will also go into purchasing medical equipment and loan refinancing. According to KB Bank’s deputy president director Robby Mondong, the company sees the health sector as a potential growth booster for 2024.

“This is in line with our commitment to help the government improve people’s quality of life. We believe that Mayapada Healthcare has great growth potential and its presence is pivotal to improving people’s health,” Robby was quoted as saying in a press statement.

Mayapada Healthcare’s chairman and group chief executive officer Jonathan Tahir welcomed the partnership with KB Bank.

“We believe KB Bank can support our efforts to speed up our efforts to expand healthcare by establishing new Mayapada Hospital units, while also improving our quality by having state-of-the-art medical equipment,” Jonathan said.

In 2023, the company launched its 6th Mayapada Hospital unit in Bandung. They also broke ground on the construction of the 7th Mayapada Hospital in Nusantara. The healthcare company is planning to build the 8th Mayapada Hospital in Cakung. There are also plans to build an international-standard hospital in partnership with India’s Apollo Hospitals at Batam's health tourism special economic zone. 

The Indonesian government is currently seeking to bolster its healthcare system as the country seeks to reach a golden era in 2045. The government is allocating Rp 186.4 trillion in the state budget for the healthcare sector in 2024, up 8.1 percent compared to the previous year.