Jakarta. Lippo Group, one of Indonesia’s largest property conglomerates, has agreed to a $1 billion deal with Chinese state-owned conglomerate China Merchant Group for the construction of health facilities in the world's second largest economy.
The deal is part of Lippo’s plan to expand its hospital business in Asia. The group now has one hospital and 10 clinics in China; 12 hospitals in Japan; four hospitals in Myanmar; 100 clinics combined in Singapore and in Vietnam.
"Lippo Group has gained respectable expertise in running hospitals. With this cooperation with CMG, we will have more hospitals in China," James Riady, Lippo Group chief executive, said at a deal-signing event in Jakarta on Monday (10/09).
The event was also attended by Lippo Group founder Mochtar Riady and CMG chairman Li Jianhong.
James did not say how many hospitals Lippo plans on building in China, but he did say most of the new facilities will be specialist hospitals.
Lippo and CMG have been exploring a partnership deal for the past two to three years, James said, and the new agreement could mark the beginning of more projects in the future.
"With all of CMG's business strengths combined with Lippo we will develop cooperation, not just in the health sector, but also the development of new cities and infrastructure," he said.
Established in 1872, CMG has been known as a pioneer in modernizing China and the country’s industry and commerce development. By the end of 2016, the group managed 6.81 trillion yaun ($1 trillion) in assets, including banks, toll roads, ports and industrial complexes and shipping and logistic centers.
The Jakarta Globe is part of Lippo Group