GE HealthCare Climbs on Landmark Indonesia Imaging Deal
Partnership to supply over 300 CT scanners as part of nation's historic healthcare modernization, bolstering GEHC's key emerging market footprint.
GE HealthCare Technologies Inc. (NASDAQ: GEHC) saw its shares gain in Tuesday trading following the announcement of a significant, multi-year partnership with the Indonesian Ministry of Health to bolster the nation's healthcare infrastructure.
The medical technology giant will supply more than 300 advanced computed tomography (CT) scanner systems to public hospitals across all 38 of Indonesia's provinces. The deal solidifies GE HealthCare's strategic expansion in Southeast Asia, a critical growth region for the healthcare sector. Following the news, GE HealthCare's stock traded at $82.25, navigating daily market fluctuations, with analysts holding an average price target of approximately $89 on the stock.
This large-scale deployment is a cornerstone of Indonesia's 'Strengthening Indonesia’s Health Referral Network' (SIHREN) program, which represents the largest healthcare infrastructure investment in the country's history and one of the world's most extensive multilateral health projects. The initiative aims to modernize the national referral hospital system and dramatically improve access to high-quality diagnostics for over 280 million citizens. The new CT systems, scheduled for installation by 2028, are intended to facilitate earlier detection and more effective management of non-communicable diseases such as cancer, heart disease, and stroke.
"This collaboration is a testament to our commitment to advancing healthcare in Indonesia," said a GE HealthCare representative in a statement released on Business Wire. The partnership goes beyond equipment sales, underscoring a deeper investment in the country's medical ecosystem.
This move aligns with GE HealthCare's broader strategy to focus on localized innovation and build a strong presence in key emerging markets, where it competes fiercely with rivals like Siemens Healthineers and Philips. The company has already established a significant local footprint, inaugurating Indonesia’s first CT scanner production facility in early 2025 in partnership with PT Kalbe Farma's subsidiary, Forsta. Furthermore, in 2024, GE HealthCare launched a Regional Innovation & Training Experience (RITE) Hub in Jakarta to upskill local healthcare professionals.
Since its spin-off from parent General Electric in January 2023, GE HealthCare has focused on executing its vision as a standalone leader in precision medicine and digital health. While the stock's performance has trailed the broader S&P 500, this landmark deal provides a tangible catalyst for future growth. The company, with a market capitalization of approximately $38.5 billion, is highly regarded by the investment community, with a majority of analysts covering the stock maintaining a 'Buy' or 'Strong Buy' rating.
The agreement with Indonesia, secured through a competitive international tender process, provides a long-term revenue stream and strategically positions GE HealthCare at the forefront of one of the world's most rapidly developing healthcare markets. It serves as a powerful case study for the company's strategy of combining global technology leadership with deep, localized partnerships to drive growth and improve patient outcomes.