Pertamedika Sentul, a hospital operator, secured Rp 176 billion ($19 million) worth of loans from lender Bank Central Asia, it said in a filing to the Indonesia Stock Exchange on Thursday.
Pertamedika is a joint venture between property developer Sentul City and state-controlled energy company Pertamina.
The loans will be used for working capital for Pertamedia and for investment in developing a hospital in Sentul City, an integrated satellite city, located just south of Jakarta.
“Sentul City act as the guarantor for the loan facility,” said Pesta Uli Stanggang, corporate secretary at Sentul City.
Sentul City holds a 65 percent interest in Pertamedika through its subsidiary Sentul Investindo, while Pertamina controls the rest via a medical provider arm, Pertamina Bina Medika. The hospital, called Rumah Sakit Pertamina Sentul City, sits on 12,500 square meters of land in the central business district of Sentul City.
Pertamedia operates 11 hospitals. It assists patients with more than 25 specialist medical treatments, apart from regular medical and dental services.
Indonesia’s per capita income has grown steadily in recent years, fueling demand in property and better health services. Sentul is among property companies enjoying stellar revenue from the nation’s strong consumer spending.
The economy has been forecast to grow at 6.5 percent this year, which would match the rate in 2011. Growth is the second fastest among the Group of 20 nations after China. The economy expanded 6.4 percent in the second quarter.
Sentul City, which specializes in townhouse-style developments and shopping malls, booked a 152 percent year-on-year rise in revenue in the January-June period.
Revenue rose to Rp 422.2 billion from Rp 167.7 billion. Meanwhile, net income rose 136 percent to Rp 144.2 billion in the same period.
One of the major expansion projects being built by Sentul City is a theme park called Jungleland Asia. The property developer in April signed a Rp 200 billion loan with lender Bank Pan Indonesia to help finance the theme park.