The International Finance Corporation (IFC) will invest up to $15 million in PT Tawada Healthcare (Tawada Healthcare) to support the company’s medical device and consumables distribution business while also enabling it to expand its manufacturing operations, according to an announcement.
DealStreetAsia had earlier reported that IFC proposed a $15-million investment in PT Tawada Healthcare, which is backed by private equity firm Capsquare Asia Partners.
The investment is also expected to improve access to more affordable healthcare for Indonesians by providing a significant boost to the healthcare and medical device industry.
The agreement marks the first deal under a memorandum of understanding (MoU) between IFC and the Indonesian ministry of health that included an undertaking to identify investment opportunities to support the pharmaceutical, vaccine, and medical industries.
The investment from IFC, in the form of equity, will enable Tawada to grow its distribution business and will provide capital for the construction of a new manufacturing facility in Central Java.
“It was only a few months ago that IFC signed an MoU with the Indonesian Ministry of Health to support the healthcare sector in Indonesia, and I am proud to say that this investment shows that we are already delivering on our commitment, which at the end of the day will result in better health outcomes for the people of Indonesia,” said Euan Marshall, IFC Country Manager for Indonesia and Timor-Leste.
“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.”
This investment is in keeping with IFC’s strategy for Indonesia, including the need to address persistent access gaps in remote areas and is aligned with the World Bank’s approach to overcoming the adverse effects of the pandemic on human capital, building resilience to better handle a variety of shocks including those related to health, and promoting inclusive growth.
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 centres, and laboratories across Indonesia.
The company is owned by PT Triputra Berjaya and Capsquare Asia Partners, and will now have IFC as a shareholder.
In the financial year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
In August, DealStreetAsia reported that IFC will invest $11 million in Mumbai-headquartered primary care services provider Wellspring Healthcare, the owner of Healthspring Community Medical Centres.
