Implementation of JKN (National Health Insurance System) by the government, growing foreign investment in the private hospital sector, expansion of service and product portfolio by major private hospital chains and pharmaceutical companies were the key factors driving growth in Indonesia Healthcare Market.
The Indonesia healthcare market has shown a positive incline during 2012-2017 but with respect to the expanding population of Indonesia, the market is still underserved especially in the underdeveloped and rural areas as of 2017.
The implementation of JKN scheme by the government has led to rise in demand for primary healthcare facilities and increased generic drug sale. This has further led to increase in number of outpatients and improvement in margins mainly from upgrades for standard JKN fees and services.
The industry has undergone various deregulation programs which has encouraged foreign investment in the industry. For instance, the government removed pharmaceutical industry from its negative investment list implying 100% foreign ownership is allowed. Further, foreign players are allowed to hold 67% stake in both general and specialty hospitals. Foreign investors such as Malaysia-based Creador injected USD 45 million in Medikaloka Hermina, the operator of the Hermina Hospital Group. Netherlands has accounted for the largest share of USD 10 million in the total foreign investment of USD 14.3 million during the first half of 2017.
The market has witnessed enhancing innovation in nutritional health segment and biopharmaceuticals due to growing prevalence of lifestyle diseases such as diabetes, hypertension and obesity. International companies have benefitted from rising demand in medication for chronic diseases such as Tuberculosis, HIV and others. Furthermore, increase in demand for generic medicines has led the major players in the industry to expand their production capabilities. In order to capture the market potential, the industry has observed various mergers and acquisitions over the last few years. Further, there are startups such as PesanLab which offers a booking service for laboratory testing, or Homecare24 which offers on-demand home care services. This will further lead to integration of healthcare services in the country.
The report titled “Indonesia Healthcare Market Outlook to 2022 – by Hospitals, Clinical Laboratories, Pharmaceutical, Pharmacy Chains, Medical Device Segment” by Ken Research suggested a growth at a CAGR of 9.6% in revenue in Indonesia Healthcare Market by 2022.
Key Topics Covered in the Report:
Medical Devices Market Indonesia
Indonesia Healthcare Statistics
Diabetes Prevalence Indonesia
Pharmaceutical Market Indonesia
Obese Population Indonesia
Number of Hospitals Indonesia
Healthcare Spending Indonesia
Number of Puskesmas Indonesia
Medical Device Imports Indonesia
Type of Medical Devices Indonesia
Tuberculosis Prevalence Indonesia
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing & Communications