Central Sulawesi Governor Promises Fast-Track Permits for Lippo’s Hospital Project
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JAKARTA, Investortrust.id — Governor of Central Sulawesi Anwar Hafid has pledged to personally fast-track permits for Lippo Group’s proposed hospital project, in response to criticism from CEO James Riady about bureaucratic hurdles in regional licensing.
Speaking at the Kadin Breakfast Dialogue in Jakarta on Friday, Anwar directly addressed Riady’s concerns. “If you decide to build a hospital in Central Sulawesi today, just start building. I’ll bring the permit to your house myself,” he said. “You don’t need to deal with permits. That’s my job as governor.”
His remarks came after Riady, who also serves as Vice Chairman for International Affairs at the Indonesian Chamber of Commerce and Industry (Kadin), voiced frustration over what he called a “precedent condition” system. Under this system, businesses are often required to complete construction before being granted operating licenses—a process Riady said is uncommon internationally and discourages investment in healthcare infrastructure.
A precedent condition requires obligations or rights in a contract to be fulfilled before any legal enforcement can begin. This is the opposite of a condition subsequent, which allows construction to begin while the permit is processed concurrently.
Governor Promises Reforms and Investor Support
Anwar, who took office in 2024, said he has restructured the provincial permitting process to eliminate red tape and encourage investment. “We don’t want investors wasting energy just to get licenses. The mechanism has been simplified—if anyone wants to invest, we’ll handle the rest,” he said.
He also used the event to promote Central Sulawesi as a strategic investment destination, citing its key sectors: nickel processing, fisheries, and tourism. According to Anwar, the province currently hosts five active industrial zones employing over 400,000 workers, including some 30,000 foreign workers.
“Basic necessities in our industrial zones are still being imported from outside the region. That’s a huge business opportunity—for agribusiness, logistics, and healthcare,” he added.
Riady Calls for 1,000 New Hospitals
Riady emphasized that Indonesia needs at least 1,000 new hospitals over the next 15 years, especially as health spending is projected to rise from 3% to 6–7% of the country’s GDP.
Despite this growth potential, he argued that convoluted local permitting continues to stifle healthcare investment. “Investors are asked to finish building before they can even start applying for licenses. That’s just not how it works elsewhere,” Riady said.
Governor Anwar ended the session with another assurance. “Don’t worry, Sir. If you agree today, we’ll start working tomorrow,” he said to applause from the audience.