First REIT - UOB Kay Hian 2024-03-25: Riding On Transformation & Growth Of Healthcare In Indonesia

• The healthcare industry in Indonesia is booming due to increasing awareness towards preventive care, rising affluence and successful healthcare reform. First REIT (SGX:AW9U) is able to capture the growth in Indonesia through its performance-based rent, which is calculated based on 8.0% of preceding financial year gross operating revenue. Three of its hospitals currently contribute performance-based rent.
• - Read this at SGinvestors.io -

Indonesia a huge market for healthcare.

• The growth in healthcare in Indonesia rides on megatrends, such as the rise of the senior demographic and increasing healthcare awareness towards preventive care. According to the World Bank, there are currently 52m middle-income Indonesians (earning Rp1.2-6.0m per person per month), or one in every five.
• - Read this at SGinvestors.io -

Successful healthcare reform.

• Indonesia established Jaminan Kesehatan Nasional (JKN), the largest national healthcare insurance system in the world, in 2014. JKN is implemented by SOE BPJS Kesehatan. The premium is set at 5%, of which 4% is paid by employer and 1% by the employee. Premium for the poor is funded by the government.
• The scheme has 249m registered members in 2022, representing a population coverage of 91%. It indirectly boosts domestic consumption by providing citizens with a safety net against financial shocks from chronic illnesses and medical emergencies. Concurrently, affluent Indonesians covered by private healthcare insurance is projected to increase at a CAGR of 8.1% to 16m in 2027.

Market leader in Indonesia.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-03-25 SGinvestors.io

---