Ranking as the fourth most congested nation in the globe, an analysis conducted by Frost & Sullivan and the Ministry of Health revealed that Indonesia’s health care sector is growing at a rapid pace. Currently, Indonesia is home to around 1300 public and 800 private hospitals.
Spike in hospital development
Public hospitals in Indonesia now have complete autonomy as a result of the country’s effort to decentralize its health care department with specific centers catering to rural districts. On the other side of the spectrum, private hospitals in Indonesia with international leanings are also gaining traction in development.
Reports from McKinsey & Company show a favorable forecast of an increase in Indonesia’s middle-class populace from 52 million in 2015 to 135 million by year 2030. What’s more is that this prediction is paired with healthier lifestyle practices.
Shortage of qualified staff
Indonesia’s Ministry of Health says its citizens are seen splurging on at least 1.2 billion USD per year on overseas medical intervention as of a 2012 survey. The shortage of eligible staff is one of the main issues cited in its private health sector. This is resulting in many Indonesian patients opting to seek medical attention and care in neighbouring Malaysia and Singapore. Currently, in Malaysia, 65% of non Malaysian patients are from Indonesia while approximately 70% of Singapore’s international patient base is Indonesian. Hence, there’s a large chunk of Indonesia’s populace that prefers to travel elsewhere to fulfill its medical needs due to this situation.
With an aim to be at par with global health standards, Indonesia is working closely with foreign elements to reduce the number of Indonesians seeking medical treatment abroad. Training programs for ICCU treatment, oncology, midwifery and gerontology are in place with the aid of the Australian government.
A systematic and centralized healthcare information sharing mechanism across hospitals in the country is underway with an ultimate endpoint to reduce medication mishaps and improved patient care.
Medical equipment and devices
In an article published by Frost & Sullivan entitled “Indonesia an attractive market for foreign healthcare,” its medical equipment market is expected to swell to 1 billion USD by year 2018. Currently, 85 percent of Indonesia’s medical equipment and devices are imported. The balance 15 percent that are locally produced mainly consist of products such as wheelchairs, crutches and hospital beds. Opportunities lie in specialised equipment used for diagnosing, respiratory therapy, radioimmunotherapy, surgery, ultrasound and the like.
The following areas hold potential for growth and improvement in the Indonesian healthcare sector:
- Electronic medical recording
- Hospital/patient administration systems
- Healthcare app development and use
- Improved health facilities and management for the aging population
With Indonesia’s continued population growth, demand for healthcare equipment and medical-related services in the country is a logical consequence thereof. Hence, it is crucial for foreign companies to take advantage of this opportunity. Market your healthcare products, services and manpower now in the fields of import, distribution and retail. Investing in an ASEAN nation like Indonesia where the market is dynamic is always beneficial. However, it is just as important for you to collaborate with a local partner and do a market research as it is to tap a local government office prior to registering a healthcare-related enterprise in the country.