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New Healthcare Insurance Scheme Strengthens Demand for Low-Cost Medicines in Indonesia Finds Frost & Sullivan - Indonesia is rapidly evolving into one of the most attractive healthcare markets for investors - LifeSciences.Frost.com
New Healthcare Insurance Scheme Strengthens Demand for Low-Cost Medicines in Indonesia Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Jakarta, Indonesia, 2015/03/02 - Indonesia is rapidly evolving into one of the most attractive healthcare markets for investors - LifeSciences.Frost.com.

   
 
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In spite of the initial regulatory hurdles in setting up manufacturing units in Indonesia, companies from every healthcare sector, including hospitals, medical devices, pharmaceuticals and diagnostics, continue to look at the country as a major investment destination.

New analysis from Frost & Sullivan, Indonesia Healthcare Outlook (frost.com/p80f), finds that Greater Jakarta remains the most promising market due to strong infrastructure support, accessibility, and the presence of major hospitals. Kalimantan and Papua (outer Jakarta) too offer attractive potential. The manufacturing hub, currently in Bandung and Surabaya, is likely to move to newer areas such as Sei Mangke in North Sumatra and Tanjung Lesung in Banten as well as to the existing free-trade zone in the Riau Islands of Batam, Bintan and Karimun.

The implementation of the Jaminan Kesehatan Nasional (JKN) insurance scheme has spiked patient volumes significantly, heightening the demand for hospital beds, medical devices, affordable medicines and diagnostic services. A few clinics in Bandung reported up to a 200 percent rise in patient volumes in the first 2 months after the scheme’s implementation.

“Through JKN, government-run hospitals are looking to improve access to and affordability of healthcare in rural areas, thus spurring the demand for drugs,” said Frost & Sullivan Healthcare Industry Manager Siddharth Dutta. “JKN is likely to fuel the need for drugs in the lower end of the market rather than the large-scale substitution of premium products.”

However, domestic companies, especially in the pharmaceutical sector, still have a long way to go in terms of quality, efficiency and innovation. Further, Indonesia's physical infrastructure is considered sub-standard, as the archipelagic nature of the country makes it difficult to keep the national healthcare infrastructure together. Hospitals are unevenly distributed with maximum concentration of the Java and Sumatera islands.

Private healthcare services are addressing this gap in healthcare. It is helping meet the needs of the rapidly growing patient pool, which is also looking for quality care. Private healthcare is also opening up revenue streams for foreign and non-traditional healthcare companies. For instance, the in-vitro diagnostics (IVD) sector has more foreign companies than domestic, with approximately 80 percent of the market held by multinationals such as Roche (roche.com), Abbott (abbott.com), BioMeriux (biomerieux.com) and Sysmex (sysmex.com).

“The healthcare segment will remain a focal point for investors as streamlined processes like the implementation of e-catalogs or online pricing systems by the Indonesian government facilitate market entry,” remarked Dutta. “The system will help control medical device prices and create healthy competition among foreign and domestic suppliers in the country.”

For now, establishing partnerships with or acquiring local drug makers and distributors will provide quick access to the thriving Indonesian healthcare space. Considering that the Indonesian government prefers goods with local content to stimulate domestic sourcing while procuring foreign participants must leverage their strong finances and branding by having local partners to manage the business.

Indonesia Healthcare Outlook is part of the Life Sciences (lifesciences.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: End-User and Regional Perspectives on the China Healthcare IT Market, Multi-parameter Patient Monitoring Market in Asia-Pacific, Global Orthopedic Implant Market, and Global Wound Care Market Outlook. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Indonesia Healthcare Outlook / P80F-52

Contacts: Melissa Tan - Corporate Communications Asia Pacific
P: +65 6890 0926 / F: +65 6890 0999 - E: melissa.tan[.]frost.com.

Shena Agusta - Corporate Communications Indonesia
P: +6221 571 0838 / M: +62 856 887 0992 - E: shena.agusta[.]frost.com.

 
 
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New Healthcare Insurance Scheme Strengthens Demand for Low-Cost Medicines in Indonesia Finds Frost & Sullivan

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Frost & Sullivan | Indonesia Healthcare
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