Why and how do members of the Forbes list invest in medicine

Why and how do members of the Forbes list invest in medicine

Business in Indonesia in 2020 is going through hard times. But it is not the problems in the jurisdiction itself that are to blame for this, but a combination of two negative factors - the next "bottom" of the 12-year cycle and the COVID-19 pandemic. However, most would-be connoisseurs and sofa experts do not go further than this statement, limiting themselves to stating the fact that there is a problem. Meanwhile, the economy has already begun to rise from its knees, investors are gradually unfreezing interesting projects and entering the markets. In this article, we will talk about which specific cities will be the most profitable for the return of serious business to Indonesia.

But first, a few thoughts about focusing interest exclusively on the island of Bali and the capital of the jurisdiction - Jakarta. This approach is at least biased, at the most ineffective, flawed and short-sighted. Let us explain what has been said.

In Jakarta, like any other "main" city, there is a very developed business infrastructure, provision of services and support from the state. Bali is a resort island, so business here (more precisely, some of its industries) will be profitable by default. It's hard to argue with that. But it is also irrational to limit oneself to only a few regions. So, on the one hand, you lose a lot of additional opportunities, on the other hand, you voluntarily agree to a fairly high competition with businessmen who think exactly like you.

Meanwhile, the lion's share of the population of Indonesia (according to 2018 - 266.3 million people) is concentrated in other territories. Actually, in Jakarta (9.6 million) and Bali (3.89 million), the number of residents is significantly less. It turns out that you, figuratively speaking, leave the business "out of brackets" almost 250 million people. This conclusion, of course, is rather arbitrary, but absolutely logical.

Let's clarify right away that a comparison with Russian realities will not be entirely correct. Therefore, in the context of this thought, one should not think of Moscow and St. Petersburg. Many companies from the Russian Federation feel quite at ease on the periphery. So the administrative costs are significantly lower, and the distance to the end user is shorter.

In a word, you should definitely not be limited only to Jakarta and Bali. But to establish a headquarters on some remote island too. This issue should be resolved only after analyzing all the available data, carefully considering all the advantages and disadvantages of each available option.

For more information, please read the block of materials on Indonesia posted in the corresponding section of the Internationalwealth portal. nfo (see here). We also remind you that you can always discuss the project with our experts as part of an individual consultation. It is best to agree on it via e-mail (info @ offshore-pro. Nfo).

Business in Indonesia per year: Surabaya, East Java

It is incorrect to compare cities located in different countries. But if you say that Surabaya is the Indonesian St. Petersburg, you will be right in many respects. It is, in fact, the second capital of the country, a densely populated metropolis, with developed business opportunities and a fairly advantageous geographic location.

  • Potential capacity of the local market (population of the city - 3.2 million people).
  • Developed infrastructure, almost equal to that in Jakarta.
  • Excellent opportunities for real estate investment.
  • Good prospects for businesses based in manufacturing, agriculture, construction, retail and public services.
  • Slightly lower cost of living (including administrative costs).
  • Lower wage expectations for local workers. In Jakarta, for example, this figure is significantly higher.

Pekanbaru, Sumatra

Another great region with great prospects. He is called the informal leader of Indonesia in terms of the growth rate of the construction market, which indicates a serious interest from investors and businessmen. The situation has become a little less certain due to the COVID-19 pandemic, but it is improving rapidly, which is aided by the stimulating policies of the city authorities.

Business in Indonesia in 2020: TOP-8 cities for international investors

The Krylatskiye Hills Business Park, located on the territory of the Moskvoretsky Natural and Historical Park near Rublevskoye Highway, has been carefully tidied up and well-groomed: rose hips bloom on the flower beds, and roses smell sweet. Four class A office blocks are occupied by eminent tenants such as Microsoft and British American Tobacco.

The site adjacent to the business park looks neglected, although it is strictly guarded. The concrete fence is adorned with an unprintable three-letter word. Both sites are owned by Millhouse, which manages the assets of Roman Abramovich and other former shareholders of Sibneft. Behind the gray fence is the Moscow Medical Center clinic, which was supposed to become another source of pride for the billionaire - the largest and most modern private clinic in Moscow. But the fully completed building has been empty for five years. What happened?

Abramovich's error

Abramovich's intention to build a "clinic for the rich" was first reported in 2006 by the British newspaper The Sunday Times, citing an investment of about $ 150 million and detailing the alleged luxury of an 80-bed hospital. “Patients will be offered rooms with a large bathroom and living room, TV, Internet and fax access,” the article said. In total, the hospital was supposed to admit up to 400 patients per day.

The plan for the construction of a medical center in Krylatskoye has existed since Soviet times. Alexander Bronstein, president of the Center for Endosurgery and Lithotripsy, convinced Abramovich to realize this idea. “This clinic was built for me and for me, I had to manage it,” Bronstein recalls in a conversation with Forbes. His own center, one of the oldest private clinics in Moscow, whose clients are many of the Forbes list, is located on the congested Enthusiasts highway.

The new clinic was supposed to make all the dreams of an ambitious doctor come true. A hospital with spacious wards, operating rooms, a diagnostic center equipped with CT scanners and other modern equipment, which was then a rarity even for private clinics in the capital. Everything is like in the West: the stay in the ward is comfortable, but as short as possible - putting a person in the hospital for a weekly examination is expensive and impractical. Medical stars from Russia and the United States would be invited to complex surgeries - again in a Western manner, where leading doctors work not in hospitals, but at universities and operate by invitation. Nothing of the kind existed in Moscow at that time.

The hospital was Abramovich's first development project. Especially for the construction of the medical center, Millhouse Capital, together with the managers of the Alfa-Development company, established in 2001 the CMI Development company. It was she who later built the Krylatskie Hills business park, cottage villages, class A offices in Moscow, and shopping centers in Chukotka.

But there was a misfire with the medical center. The 3.5 hectare site was leased by the Moscow government to Medical Estate LLC in 2003; construction was to be completed in 2009. The new completion date is 2013. What is the delay?

The initial project of the miracle clinic was developed according to Russian standards by the Moscow architectural firm ABD Architects. However, American managers involved in the CMI Development team convinced Abramovich that the clinic should be built according to American standards, not local ones. For example, in Russia, all hospitals have the shape of narrow rectangles so that the windows of all wards and offices face the street - this is the only way to comply with sanitary and epidemiological standards for natural lighting of premises. The building of the clinic in Krylatskoye is almost a square, along the perimeter of which the wards were supposed to be located, and in the center - operating rooms, offices and office premises with artificial lighting. This layout is more convenient, but does not fit into Russian standards. As well as economical engineering systems - the regulations prescribe to make a separate ventilation system for operating rooms, have a double backup power supply system, etc. “The building was built, but has not yet been commissioned,” recalls Boris Levyant, head of ABD Architects.

Perhaps Millhouse could rebuild the building to Russian standards, but Abramovich's interest in the medical project has faded. “He finished building the clinic: he bought Chelsea, the head was filled with others,” Bronstein says bitterly.

There were no people willing to buy an unapproved and unequipped clinic. “Our European Medical Center (EMC) bargained for it, but the owners were not satisfied with the price,” says Leonid Pechatnikov, the former head physician of the EMC, now the vice-mayor of Moscow, who oversees health care. And he adds, already as an official, that the project may be of interest only to private business: “Now, in my opinion, this is just a building. It was conceived as a clinic, but it never worked. " Millhouse spokesman John Mann, having received a request from Forbes, limited himself to the answer that the project exists, "but not yet completed."

Abramovich wanted to be the first, but he turned out to be the last. Many billionaires are already interested in private medicine. Money flowed into the industry like a river. Viktor Kharitonin (No. 105 in Forbes' Golden Hundred) creates a network of private clinics, Vladimir Yevtushenkov (No. 21) has taken seriously the preparations for the IPO of his Medsi network, Mikhail Fridman's Alfa Group (No. 6) is developing a network of private clinics Alpha Health Center. Why were they luckier?

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