Indonesia’s market size for medical equipment was valued at more than US$2.2 billion in 2016, making it one of the most attractive medical devices market in the whole Asia-Pacific region. Moreover, Indonesia relies on upon imported medical devices and supplies to meet the local healthcare demands, with imports growing from US$726 million in 2015 to US$1.3 billion in 2016, an increase of 42.51%.
While the government encourages local manufacturing of medical equipment, the most sophisticated medical and surgical devices and infrastructure are imported from foreign countries (e.g. medical lasers, diagnostic equipment or linear accelerators for radiation oncology), with most imports coming from the U.S., Singapore, Japan, Germany, Korea and China. Meanwhile, Indonesian manufacturers produce low-end equipment such as hospital beds, wheelchairs and disposable supplies. More than 35% of the market size corresponds to Diagnostic Imaging equipment, while consumables account for over 24%.
The demand for dental equipment is significantly growing in recent years, due to increased awareness, economic development and the expansion of the middle and upper classes. There was, in general, little preventive care and even regular check-ups were not common. However, the technology and equipment of dentistry is quite adequate compared to the 80s era, although only a small percentage is produced in Indonesia, while more than 85% is imported
European and American dental care product manufacturers are considered to provide the highest quality and reliability of advanced technology, which provides for a lucrative submarket for European businesses in dental equipment, especially for scaling and polishing, bleaching and for orthodontics.
Indonesia has also a promising market for clinical laboratory and diagnostics equipment. In the past few years, the Indonesian market grew annually at double-digit numbers and analysts expect that a strong growth remain visible in the foreseeable future. In addition, an increasing number of private hospitals are looking for sophisticated laboratory equipment to offer higher quality healthcare and to be better able to serve the needs of the patients. Sustainable opportunities are related to test kits for hepatitis, sexually transmitted diseases, infectious diseases, pregnancy and diabetes, as well as in instruments related to clinical chemistry, hematology and immunology.
Domestic healthcare providers are increasingly looking for high technology equipment to better serve the needs of their clients. They are also strengthening their presence in the Indonesian healthcare sector by building new hospitals with state-of-the-art facilities (e.g., Siloam Hospital Group), which provide opportunities for foreign companies to support the renovation and/or construction of these hospitals.
Ultimately, with the implementation of the National Health Insurance System, Indonesia will see a strong increase in the demand for medical devices and pharmaceutical products.