Market Opportunity in Indonesia
Indonesia is the fourth most populous country on earth with 257 million inhabitants and widespread demand for advanced medical equipment.
Indonesia has a significant wealth gap between social classes. In response to this, the National Health Insurance – Jaminan Kesehatan Nasional (JKN) – launched its universal healthcare program in 2014, with the goal to cover all Indonesians by 2019. This will create widespread demand for advanced medical equipment, in particular, diagnostic, medical imaging and surgical equipment.
Middle and upper income households are growing rapidly, and with the ability to afford high-value treatments (using advanced health equipment), they tend to seek private healthcare facilities. Public hospitals rarely provide this kind of treatment.
According to the latest Business Monitor International (BMI) report, the medical device market in Indonesia is currently worth US$747.3 million, and it will reach US$1,197.2 billion by 2019. It is projected to rise by a compound annual growth rate (CAGR) of 14.6%. By individual product area, the CAGRs are expected to range from 20.8% for dental products to 8.9% for consumables. In 2015, the local currency weakened against the US dollars, but it is expected that import performance will pick up on the back of rising demand for medical devices. Almost 95% of the country’s medical device market is made up of imports and 90% of medical device registrations were completed by foreign manufacturers. Therefore, the Indonesian market is still an attractive option for the commercialization of medical devices.
Andaman Medical can act as your in-country representative
Currently, foreign investors are not able to register medical devices without establishing a local office or cooperating with local distributors. A foreign-owned company is required to have a minimum capital of IDR10 billion (US$760,000). The establishment process can be complex and time consuming. To save time and effort, Andaman Medical can act as a local representative to support the launch of medical devices in Indonesia. Based in Jakarta, our team of consultants provide the necessary information on the registration process for imported medical devices and can ensure that your medical device complies with Indonesian regulatory requirements. Acting under the authority of your company, Andaman Medical will personally oversee the registration process with the Ministry of Health and obtains the distribution license after approval. Thereafter, we take responsibility as the license holder for the distribution of the medical device across Indonesia. With our support, we’ll enable your company to successfully commercialize your medical devices in Indonesia.