Tawada Healthcare will allocate IFC’s investment to grow its medical and consumables distribution business as well as expand its manufacturing operations in Central Java.
Heaptalk, Jakarta — Global development institution, International Finance Corporation (IFC), announced its investment plan of up to $15 million in Indonesia’s healthcare product supplier PT Tawada Healthcare (09/18).
The investment in the form of equity is intended to support Tawada Healthcare’s medical device and consumables distribution business as well as to expand manufacturing operations in Central Java. By improving the country’s healthcare and medical device industry, the fund is expected to increase Indonesians’ access to more affordable health services.
Representatives of both parties signed the partnership agreement marking the first milestone under a memorandum of understanding (MoU) between IFC and the Ministry of Health on May 15, 2023. The MoU includes a commitment to identify investment opportunities that can support the pharmaceutical, vaccine, and medical technology industries, as well as strengthen resilience in the health sector in Indonesia.
Chief Executive of Tawada Healthcare Satrija Sumarkho saw that Indonesia is still lagging behind most other countries in terms of access to quality health services. According to him, the Covid-19 pandemic has changed people’s mindset with the country recognizing the need to guarantee access to health for the people to achieve its vision of becoming a developed country by 2045.
“The government has since poured investment into building more hospitals and clinics, purchasing quality medical devices, building a workforce of qualified healthcare practitioners, and handing out incentives to the private sector to build a local medical industry. The private sector has also relentlessly built more and more hospitals,” Satrija said. Further, he is optimistic that his party can play a significant and important role in the transformation of health services in Indonesia with IFC’s investment and Tawada’s network and infrastructure.
Encouraging job creation and economic growth
Meanwhile, IFC Country Manager for Indonesia and Timor Leste Euan Marshall said that the investment announced today shows his entity’s commitment as stated in the MoU with the Ministry of Health of the Republic of Indonesia. He uttered, “With this investment, we will be directly contributing to overcoming some of the challenges faced by the healthcare sector, particularly in relation to manufacturing and distribution, that were highlighted by the COVID-19 pandemic, and which placed enormous pressure on Indonesia’s healthcare system.”
The partnership between IFC and Tawada Healthcare is also expected to bring further positive impacts, such as job creation and economic growth by encouraging the development of local industry. Additionally, the injected equity will be able to attract investment and promote technological progress.
Founded in 1999, Tawada Healthcare supplies and maintains healthcare and medical devices, as well as markets and distributes medical consumables to more than 6,000 customers nationwide, including leading hospitals, medical centers, and laboratories across Indonesia. Headquartered in Jakarta, the company represents at least 45 global brands, including Abbott, Leica, Olympus, and Baxter.
As a member of the World Bank Group, IFC works in more than 100 countries with a focus on the private sector in emerging markets. In 2023, the institution committed a record $43.7 billion to private companies and financial institutions in developing countries.
