Japanese conglomerate Marubeni has agreed to acquire a 5% interest in PT Siloam International Hospitals (Siloam), a publicly listed hospital chain controlled by PT Lippo Karawaci.

The partnership with Lippo Karawaci will allow Marubeni expand into healthcare services in Indonesia. Lippo Karawaci’s ownership stake in Siloam remains unchanged.

Established in 1996, Siloam is Indonesia’s largest private hospital operator with over 13,000 doctors and nurses, 36 hospitals and 7,557 beds across the country.

The business strategy of Siloam, which offers healthcare services to about two million patients annually, allows its hospital to operate on a lower cost based on economic of scale.

The Japanese firm has also signed a memorandum of understanding with Lippo Karawaci to pursue business opportunities in the Indonesian healthcare infrastructure and services.

Plans include investments in pharmaceuticals, lab and other industries associated to healthcare.

Marubeni’s next generation business division COO Masayuki Omoto said: “We are pleased to be growing our presence in Indonesia and look forward to a long term partnership with LPKR and Siloam. We are excited to be taking part in growing and improving the healthcare sector in Indonesia.”

The next generation business development division of Marubeni was established in April 2019 to pursue new business models that offer solutions to social issues, and increasing corporate value in the long term.

Marubeni said the investment in Siloam and partnership with LPKR will form the foundation of its expansion into healthcare infrastructure and services in Indonesia.