The report helps businesses gain a unique insight into the socio-economic dynamics, and helps analyze how they affect healthcare systems and their evolution. It can serve as a valuable tool with actionable guidance for sales, marketing, R&D and business managers with industry related interests.
Four chapters cover the numerical and written analysis for the following topics: Economic Outlook (38 Key industry indicators), The Healthcare System (HC system structures), Reforms (restructuring, re-engineering or austerity efforts) and the Healthcare Market (Capital Equipment, Medical Devices, Disposables and Pharmaceuticals).
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- Indonesia is the 4th most populous country in the world (with 258 m people, growing by 1,3% per year). The country is member of ASEAN and of the G20.
- In 2015, GDP is estimated to have grown by 4.8% and during the next 2 years growth is expected at around 5%.
- Official unemployment figures are relatively low (6.2%), but 60% of the working population is employed in the informal labor context.
- Indonesia’s industry is facing challenges in recent years, such as regulatory uncertainty and corruption, bureaucracy, underdeveloped infrastructure and inadequate investment.
- Annually around 5 m people are being added to the middle class, increasing Indonesia’s consumer force. Domestic demand is considered to be the driving factor in the economic growth for the coming 5 years.
The Healthcare System:
- Indonesia scores poorly on many healthcare parameters such as health status, infrastructure, quality, equity, affordability, accessibility, etc.
- A decisive healthcare driver is the implementation of a nationwide universal healthcare coverage scheme, to be in full effect by 2019.
- Analysts estimate that public spending on healthcare will de facto increase by 10-13% per year and private spending by 15-18%.
- Private hospitals are hesitant to join the national health scheme as reimbursement rates are low. Only one third of the specialty interventions are performed in public hospitals. The rest are done by private specialty clinics.
- In 2015, Indonesian healthcare expenditures represented only 2.8% of its GDP. This is low for its region and also one of the lowest shares worldwide. Around 64% of Indonesian healthcare costs are financed privately and 36% is financed publicly.
- The National Agency of Drug and Food Control (NA-DFC) is in charge of medical device regulations and registration.
- Recent and ongoing reforms include:
- Harmonized Medical Device Registration Framework (2016)
- Universal healthcare coverage through JKN (2014-2019)
- Improving their score on some key health indicators such as maternal and infant mortality, as well as (re-)emerging communicable and increasing non-communicable diseases; especially diabetes cases are rapidly increasing.
- Strengthening primary and secondary care capacity (2014-ongoing)
- The Indonesian market will offer appealing opportunities in the coming 3 years.
- In 2015, around 17.8 bn was spent on the Indonesian healthcare organization and provision. Of this around €6.5 bn was spent on medical technology and pharma. TforG forecasts an average yearly growth of 13 to 16% in the coming 3 years.
- 51% of the medical expenses are used in the private sector.
- The Indonesian healthcare market is complex because of the regulatory restrictions, the cumbersome and long approval processes, the bureaucracy and the corruption.
- Around 35% of the total medical imports consist of diagnostic imaging, holding a market value of around €227 m. Considering all capital equipment, the Indonesian market is estimated around €350 m.
- Low replacement frequency. It is difficult for premium products to enter the market as most hospitals do not have the budget necessary to make a purchase. This may be an opportunity to focus on value-tier equipment.
- Building new hospitals in both the public and private sector, along with a rising middle class that can afford HC, are driving medtech market growth.
Includes tables centralizing all relevant data on socio-demographics, macroeconomics and national Healthcare.
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