Indonesia’s Healthcare Industry Set to Grow
With the health challenges raised by the ongoing COVID-19 pandemic in Indonesia, the government seems more committed than ever to fully reforming of the sector.
“The events [unfolded] by this pandemic means that we must accelerate the fundamental reforms in our healthcare sector,” President Jokowi said at the annual plenary meeting of Indonesia’s Consultative Assembly.
Indonesia’s pharmaceutical market is ranked as the largest market in the ASEAN regions, with the market value expected to hit IDR 141.6 billion (USD 10.11 billion) by 2021.
Indonesia’s medical device industry is worth an estimated US$2.4 billion in 2019, with the majority (US$2.8 billion) coming from imported products.
As part of the government’s COVID-19 response, the Ministry of Health has been tasked with procuring the COVID-19 vaccine, laboratory equipment and facilities, as well as research and development in addition to conducting the vaccination process itself.
Budget allocation for healthcare in 2021
Indonesian government sets Rp169.7 tn of healthcare budget allocation in 2021 (-20.1% YoY), representing 6.2% of state budget in 2021. The budget for healthcare ministry (Kemenkes) increased by 7.4% YoY to Rp84.3 tn. Government spending for healthcare budget booked solid growth of 12.8% CAGR from 2016 – 2021, it indicates that the demand for healthcare services and products in Indonesia are keep increasing, which will benefit hospital companies, due to higher patient volume.