The Investment Coordination Board (BKPM) of Indonesia revealed that government is considering revising its Negative List (Daftar Negatif Investasi) to allow foreigners to operate foreign universities and hospitals in the country.
Under the new proposed regulation, foreign universities could own up to 67% of shares. Those located in special economic zones (SEZs) are allowed to have as much as 100% shares. In response, BKPM has received interests from mainly Australian universities.
As for hospitals, the Indonesian government plans to relax foreign investment rules as the country is still dealing with hospital shortages. Currently, the country allows 67% ownership in foreign investment in private hospitals and 70% ownership if investors came from ASEAN countries. The number is expected to go up after the implementation which will take place after Indonesia’s election in April 2019.
(Source: The Jakarta Post)
The Fit Company, an Indonesia-based wellness tech startup, raised an undisclosed amount of seed funding from East Ventures, whose Indonesian investment portfolio includes unicorns Tokopedia and Traveloka. The funding will be allocated to build a technology-enabled ecosystem offering wellness-focused products and services.
The Fit Company was launched in 2014 with a product called 20Fit to address the issue of daily physical exercise. With 20Fit’s Electro Muscle Simulation (EMS) training technology, customers can cut down training time from 3 hours to only 20 minutes. Within 2 years of operation, 20FIT has grown with more than 30 studios located all around Indonesia and 1 studio in Cambodia. Subsequently, the company adds Fit Lokal, a healthier, low-calorie restaurant, and Fitmee, providing healthy instant noodle substitutes.
The Fit Company has expanded its portfolio since, adding two more products. They are Fitstop and Kredoaum, focusing on fitness center and fitness tech distributor respectively. The company plans to launch its mobile application in the first quarter of 2019.
Indonesia’s health tech sector has a huge potential, supported by its young consumer population and increase spending in discretionary spending. As reported last month, another Indonesia health tech startup, Gorry Holdings, secured fresh funding from Heritas Capital Management to expedite its expansion in the region.
(Sources: KrAsia; Digital News Asia)
Jakarta-based health tech startup, Gorry Holdings, has successfully raised funding from Singapore’s private equity firm, Heritas Capital Management, for an undisclosed amount. The funding will be utilized to create new services and speed up expansion across Indonesia.
The startup has invested in analytics, big data capabilities and machine learning to support its two platforms: GorryWell and Gorry Gourmet. GorryWell offers a one-stop digital wellness platform, taking in users’ health biometrics and offering recommendations which include food journal, calorie intake, deficit tracker, activity tracker and daily activity challenge. Gorry Gourmet offers nutritionist-approved food subscription. The meals are catered to individual’s needs ranging from weight loss, muscle gain, pregnancy and special needs.
The company is also working closely with the government, becoming an official partner of the Indonesia’s Ministry of Health (MOH)’s National Health Campaign Initiative. It is also developing “HealthyChoice” label for restaurants that meet the requirements, ased on ingredients and macronutrient data.
Indonesia’s health tech is set to be the next unicorn farm with big potential. Currently, the key players are Halodoc, Alodokter and PesanLab. The Indonesian government is also supporting the movement by allocating 5% of the state budget to facilitate tech-based health services.
(Sources: KrAsia; Deal Street Asia)
Kendall Court, a Singapore-based private equity firm, pledged a USD 55 Million Investment in Indonesia’s Mandaya Medical International Pte Ltd (MMI). MMI is part of Selaras Group conglomerate which has businesses in hospitality, healthcare and property sector. MMI operates a 218-bed hospital in Karawang, located 50 km east of Jakarta.
The fund will be allocated to build a hospital in Jakarta, as the company targets the growing demand of quality healthcare for the local middle-class community. Through the investment, Kendall Court will own a majority stake of MMI’s preference shares. The 70,000 square meter MMI’s general hospital will start operating by the end of 2019, supplying 420 beds. The new hospital will be a general hospital with a neuroscience spine centre, an advanced cancer centre and a cardio-vascular arrhythmia centre. It will also host 10 other specialist centres including centres for women’s health and fertility, dental and oral surgery, medical fitness and rehabilitation.
This investment follows a change in regulations regarding foreign investment in Indonesia's general hospital sector. Prior to 2017, foreign investors were only permitted to invest in specialist hospitals, and not in general hospitals. Through Presidential Regulation No. 44/2016 in 2017, the Indoensian government allowed foreigners to have a maximum ownership stake of 67% in general hospitals. For ASEAN investors the maximum figure is 70%.Foreign direct investment (FDI) in the healthcare industry of Indonesia rose steeply in the first half of 2017. This is expected to boost foreign investment and help address the issue of Indonesia having one of the lowest bed-to-population ratios in the world at around 1.0.
Foreign investment in 2015 and 2016 in Indonesia's hospital industry stood at USD 0.8 million and USD 0.2 million espectively, in Indonesia's hospital industry. Investment in the sector rose to USD 14.3 million during the first half of 2017.
(Source: Business Times)
Indonesia’s Finance Minister, Sri Mulyani Indrawati, stated that the government will use IDR 4.9 trillion (USD 330 million) in reserve funds from the 2018 state budget to fund the deficit of Healthcare and Social Security Agency (BPJS Kesehatan). Besides tapping into the state’s budget, a presidential regulation was approved that mandates the use of 50% of tobacco excise for health services. A ceiling on BPJS Kesehatan’s operational costs has also been imposed.
BPJS adminsters the Indonesian national health insurance Jaminan Kesehatan Nasional or JKN, which came into effect in January 2014. By the end of 2018 all Indonesian citizens and residents (including expatriates) have to be registered. JKN covers medical and non-medical benefits but excludes esthetics, orthodontics, infertility treatments, drug rehabilitation programmes. It does not impose caps on medical and nonmedical benefits covered. Underpriced premiums and substantial number of inactive participants who haven't been paying premiums have been causing funding problems. Participants pay a premium of Rupiah 25,500 – 80,000 (USD 1.7 – 5.46) every month, while actuarial valuation reveals that at least a minimum premium of Rupiah 53,000 (USD 3.55) is necessary. The umber of inactive participants is estimated to be around 17.4 million out of a total of 199 million covered by the scheme. Healthcare facilities and pharmaceutical distributors are also affected due to delayed payment from BPJS Kesehatan.
It is estimated that the deficit will hit IDR 16.58 trillion (USD 1.12 billion) by year-end. Part of the deficit totaling IDR 4.4 trillion (USD 296 million) was carried over from 2017. This funding injected by the government might not be sufficient to bring the agency out of the red.
(Source: Reuters; The Jakarta Post)
Indonesia proposes a new regulation which could set a content requirement for raw materials at a minimum of 30%, with active ingredients comprising of 70% of that and additional ingredients 30%. The local content requirement will vary for each manufacturing stage and development process. It is expected to be finalized by sometime this year.
This is following the Presidential Directive No. 6/ 2016 on the Acceleration of the Development of the Pharmaceutical and Medical Equipment Industry. This is also backed by Minister of Health Regulation No. 17/2017 regarding Action Plan for the Development of the Pharmaceutical and Medical Equipment Industry.
Indonesia has long been reliant on imported materials for the development of its pharmaceutical industry. Only 10% of materials are sourced from domestic producers. The Ministry of Industry aims to register around 20% of local components. The new regulation aims to attract investors to set up manufacturing plants to produce and process pharmaceutical products in Indonesia.
Scientists from Melbourne's Monash University have released 6 million Wolbachia-infected mosquitos in Yogyakarta as part of the Eliminate Dengue Fever program to combat Indonesia's prevalent dengue outbreak. It targets 293 houses with plans to target 1600 houses in total in the sub-district of Tegalrejo Wirobrajan in the coming months.
Wolbachia are natural bacteria present in up to 60% of insect species, including some mosquitoes. However, Wolbachia is not usually found in the Aedes aegypti mosquito, the primary species responsible for transmitting human viruses such as Zika, dengue and chikungunya. Wolbachia is safe for humans, animals and the environment. When introduced into the Aedes aegypti mosquito, Wolbachia can help to reduce the transmission of these viruses to people, without suppressing mosquito populations and potentially affecting ecosystems. Once infected, the bacteria is permanently embedded in the mosquito population.
This is part of the World Mosquito Program, known locally as Eliminate Dengue Yogyakarta. It is a global not-for-profit initiative that is working to protect local communities from mosquito-borne diseases.The World Mosquito Program in Indonesia is a research collaboration led by the Faculty of Medicine at Gadjah Mada University and funded by Yayasan Tahija (The Tahija Foundation).
The results of the trial area are encouraging till now with no reports of local virus transmission in the areas where Wolbachia bacteria has been disseminated. This method can also tackle other fatal mosquito borne diseas such as zika and chikungunya. Currently, the bacteria is undergoing trials in other 11 countries.
(Source: ABC News; World Mosquito Program)
The Indonesian private healthcare industry is expected to pose strong growth in the coming years. It is estimated by the UN that Indonesia will have 74 million people at the age of 65 and above by 2050 – a four-fold increase from the 18 million people reaching retirement age on the 2010 census. If projections are correct, this would eventually increase the demand for healthcare, especially for the private medical providers.
Private hospitals are widely perceived to have better quality of service and facilities than the government-owned healthcare providers in Indonesia. Equipped with more modern and advanced technologies, private hospitals are also typically more trusted by the upper class Indonesians. Several companies, which are projected to benefit from the growing trend of ageing population include Siloam Hospitals Group and the PT Mitra Keluarga Karyasehat Tbk. (MIKA), and PT arana Meditama Metropolitan Tbk. (SAME).
Siloam Hospitals Group is one of the most established private hospitals in Indonesia. Via its subsidiary, PT Siloam International Hopsitals Tbk (SILO), Siloam reportedly has a market capitalisation of RP 13.4 trillion (USD 959.1 million). As of March 2018, the company had 31 hospitals throughout the country, which operated a total capacity of 6,300 hospital beds, with approximately 2,700 doctors and more than 9,000 nurses.
Another big player expected to benefit from changing demographis is MIKA, which currently has close to RP 32 trillion (USD 2.29 billion) market capitalisation, the biggest among the top five private hospital providers in Indonesia. The company operates 12 hospitals that are mostly located in Jakarta and Surabaya, with a total capacity of 1,810 beds. The company has a target to have 18 hospitals by 2019, bringing the total number of bed capacity to 2,384 units.
PT Sarana Meditama Metropolitan Tbk (SAME) is the third most established private hospitals group in Indonesia. It operates hospitals under the flag of OMNI Hospitals and it has the total market capitalisation of almost RP 3 trillion (USD 214.7 million).
(Sources: Global Indonesian Voices)
Universitas Gadjah Mada (UGM) Academic Hospital launched an Android application called RSA UGM Online which enables patients to check the doctor’s schedules, number of available beds, health articles, and laboratory results. It allows patient to register online, reducing the need for queuing.
Users can upload documents online through the app, so that they will not need to bring those documents to the Hospital.
Badan Penyelenggara Jaminan Sosial (BPJS) or Social Insurance Administration Organisation is responsible for administering Jaminan Kesehatan Nasional (JKN), the Indonesian national health insurance scheme, established in 2014. Over 70% of the population is already covered by JKN.
The app also enables the patients to use their BPJS card as the RSA UGM Online system has been integrated. Users of the app can check and monitor doctor's schedules and select a day according to their convenience. They can also change the visit date or switch their appointment to another doctor with fewer patients.
(Source: Universitas Gadjah Mada, OpenGov Asia)
In April 2018, an app called ProSehat (sehat means healthy in Indonesian) featured prominently in the Indonesian app marketplace after launching a campaign #VaccinEASY to raise public awareness of cervical cancer and offer HPV vaccination home service to Indonesians.
The app has been launched in 2014 in Indonesia, which, together with certain health clinics and doctors, is providing a HPV vaccination home service. The app aims to address the prevalent HPV health issue in the country. Indonesia is listed as one of the top two countries with the most cervical cancer cases in the world.
Users can order the service by installing the ProSehat app on their smartphones, choose their preferred HPV vaccination service, select a doctor and set up their appointment schedule. Payment for the service can be also made via various methods, including credit card and 0% instalment. As a marketplace app, in addition to providing the medical consultation feature, ProSehat also enables users to purchase health-related products, such as vitamins, herbal medicines, medical equipment and baby needs. The products are provided by partnering pharmacists and health shops with valid operating licenses.
ProSehat is the brainchild of Dr. Gregorius Bimantoro, who has 12 years of experience in health-related start-ups. His venture was awarded at the Telkom Indigo Awards in 2014, and received the most promising startup in Indonesia title from e27’s Echelon, a flagship platform that empowers insights, connections, talent and funding opportunities for stakeholders of Asia’s tech ecosystem.
(Sources: The Jakarta Post)
South Korean bio firm Greencross Medical Science Corp. (GCMS) has signed an agreement to export its blood pack manufacturing technology to Indonesia-based PT. Mitra Global Hanindo. Under a contract worth USD 37 million, GCMS will supply PT Mitra with both complete blood bag products and partly made packs. Also, the South Korean firm will receive USD 3 million in technology transfer fee and royalties.
The contract, which is equivalent to 46% of the GCMS's sales in 2016, will be maintained until 2029. Under the agreement, GCMS will supply completed blood bag products from the second half of 2018 and parts for blood pack manufacturing from the first half of 2019. The company also plans to consult on PT. Mitra’s blood bag factory, set for completion next year.
PT. Mitra will become the only company in Indonesia to manufacture blood bags after finishing construction of its factory. In the future, the company plans to deliver the blood bags produced through the technology transfer of GCMS to the Indonesian Red Cross (PMI).
(Sources: Yonhap News; Korea Biomedical)
PT Kalbe FarmaTbk (Kalbe) through its subsidiary PT Innolab Sains Internasional (PT ISI) has launched Kalgen Innolab Clinical Laboratory, as a new venture engaging in laboratory services offering basic up to advanced tests such as molecular diagnostics to support personalized medicine. Kalgen Innolab Clinical Laboratory is the first foreign joint investment in clinical laboratories between Indonesia and Japan, and has obtained the approval of Indonesia's Ministry of Health. PT Innolab Sains Internasional is a joint venture company of PT Kalbio Global Medika (Kalbe’s subsidiary), Health Science Research Institute, Inc. (HSRI), or ‘Hoken Kagaku Kenkyujo (HKK)’ in Japanese, and Toyota Tsusho Corporation (TTC).
Kalgen Innolab Clinical Laboratory will offer a broad test portfolio, an international standard quality management system, an integrated Laboratory Information Systems (LIS) as well as the technology transfer of sophisticated test such as cytogenetics. Kalgen Innolab has adopted the LIS of HSRI Clinical Laboratories chains all around Japan, which have a proven track record in managing approximately 2,500,000 sample ID per month, starting from sample receipt, testing, to reporting, where a manual process would be exposed to potential errors.
Indonesia is a highly attractive market for healthcare. Its large population base, and shifting disease pattern from infectious to lifestyle diseases, have together created a growing demand for more diverse and higher quality clinical testing.
(Source: Kalbe Farma)
In the second half of 2017, ITOCHU signed a memorandum of understanding (MoU) with Lippo Karawaci to develop its healthcare business in Asian countries. Lippo Karawaci is the largest hospital operator in Indonesia, operating 26 premier hospitals called Siloam Hospitals and 16 clinics throughout the country. The collaboration aims to capitalize on the region's growing demand for advanced medical services offered by the private sector.
The MoU consists of an establishment of a joint venture in Singapore with investments expected to reach USD 9.8 million. It also includes investment and operation of clinics, hospitals and other healthcare facilities in Vietnam, Myanmar, Philippines, Malaysia and Australia. Also, both companies will collaborate to develop and operate Japanese-style hospitals as well as invest in clinics, hospitals and other healthcare facilities in Indonesia.
Itochu will offer peripheral services such as providing medical equipment produced at its group companies, supplying hospital meals and operating in-hospital convenience stores. The Japanese trader will draw on know-how gained in Japan from co-managing a hospital in Kobe.
(Sources: ITOCHU; Asia Nikkei)
According to a new report called 'Capturing the Business of Health — Opportunities and Challenges for International Healthcare Providers in Indonesia' published by Roland Berger Strategy Consultants, Indonesia's spending on national health care will exceed USD 300 billion in the next decade, providing ample opportunity for foreign health care providers. Roland Berger estimates that Indonesian spending on health insurance will increase 18-fold to USD 363 billion in 2025, from USD 20 billion in 2010.
Almost 95% of Indonesia’s medical equipment and devices are imported, with most being sophisticated medical and surgical instruments and infrastructure like medical lasers and diagnostic equipment. In the past, domestic production focused mainly on the manufacture of basic items like surgical gloves, bandages, orthopaedic aids, and hospital furniture. But since 2016, local companies began producing other medical equipment, such as sphygmomanometer, stethoscopes, urine catheter, infant incubator, nebulizer, O2 concentrator, dental chair, EKG, fetal Doppler, syringe pump, infusion pump, operating lamp, medical dressings (i.e. operating gown, bed sheets), rapid tests (i.e. HIV, Hepatitis, pregnancy to name a few), blood-grouping reagents, and first-aid boxes & kits. Frost & Sullivan estimates that the medical devices market should cross US $1 billion in 2018 with growing business in surgical equipment, diagnostics and medical imaging equipment.
With the country's entire population of 267 million people to be fully insured under the national insurance program in four years' time, Indonesia is expected to become one of the largest health care markets in the world within ten years.
(Sources: Roland Berger Strategy Consultants; Frost & Sullivan; US Department of Commerce)
Seoul Pharma, a manufacturer and distributor of pharmaceutical products in South Korea, has inked an additional agreement with Indonesia's PT. SOHO Industri Pharmasi to supply two pharmaceutical drugs to the Indonesian market over the next 10 years, in a deal worth USD 7.76 million. The deal relates to two drugs: Aripiprazole, which is an antipsychotic treatment for schizophrenia and bipolar disorder, and Donepezil, a treatment for Alzheimer's disease. Previously, PT SOHO Industri Pharmasi imported two drugs, namely Sildenafil and Tadalafil, worth USD 8 million from Seoul Pharma.
According to research and consulting firm GlobalData, the Indonesian pharmaceutical market is anticipated to increase to USD 12.6 billion by 2020, driven primarily by the Indonesian government’s economic and healthcare initiatives . PT. SOHO Industri Pharmasi, a member of SOHO Global Health, is well-positioned to benefit from the growth. It is a leading pharmaceutical manufacturer in Indonesia, with products that range from ethical, consumer health, herbal medicines, to other natural products. It has more than 1500 employees, including a 600-strong sales field force which manages its sales and marketing activities throughout the country. The company has been granted manufacturing licenses by France's Sanofi Winthrope and Italian firm Ageline Francesco.
(Sources: SOHO Group; Global Data; Korea Biomedical Review)
Royal Philips, a global leader in health technology, and Siloam Hospitals have announced a five-year partnership agreement covering maintenance and operational services for all of Philips’ healthcare technologies installed in Siloam’s 21 locations across Indonesia. The new agreement aims to ensure the high quality of healthcare services that Siloam – Indonesia's largest healthcare group – is providing to its patients, while at the same time improving operational and cost efficiency. Siloam Hospitals use a broad range of Philips healthcare technologies, such as suites for image-guided therapies and diagnostic imaging solutions (for example, MRI, ultrasound and mammography)
Through this partnership, Philips will help to maintain the superior quality of healthcare solutions at Siloam Hospitals, helping 21 of its hospitals in Jakarta, Surabaya, Yogyakarta, Makassar, Bali, Palembang and other key cities to ensure patient safety is not compromised while delivering high levels of healthcare services.
As of September 2017 around 70% of the Indonesia's population is participating in the government's universal healthcare program (known as Jaminan Kesehatan Nasional or JKN), a program that was implemented by the social security agency Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS) in early 2014. This government-subsidized program aims to provide all Indonesian citizens with access to a wide range of health services by 2019.
A total of 181,210,694 people are now covered by the government's mandatory universal healthcare program, indicating that this year's target is almost achieved. Before the end of 2017 the government targets to have 185.1 million people subscribed to the JKN program. The number of hospitals, health facilities and clinics that work together with the universal health program also continues to grow.
The gargantuan task of providing universal health insurance to 258 million people will see Indonesia continuing to invest heavily in the healthcare sector, The demand for quality healthcare in Indonesia is expected to drive the demand for pharmaceutical products, medical devices, and healthcare services.
(Source: Indonesia Investments)
The Minister of Health of the Republic of Indonesia, Prof. Dr. Nila Djuwita F. Moeloek, officially launched the new pharmaceutical factory of PT B. Braun Medical Indonesia in Karawang this month, which will produce innovative infusion solution products to meet the needs of domestic and export markets. Built on an area of 19 hectares with an investment value of close to IDR 900 billion (USD 52.46 million), the factory will become a key production site for B. Braun, a leading global medical technology, and pharmaceutical company. The factory is equipped with advanced technology to produce high-quality and safe medical products.
B. Braun’s investment in its latest production plant is in line with the Presidential Instruction No. 6 of 2016 on Acceleration of Pharmaceutical Industry and Medical Instruments and the Minister of Health Regulation No. 17/2017 on the Action Plan for the Development of Pharmaceutical and Medical Devices in Indonesia. As the new production plant begins to operate, Indonesia will be able to minimize its dependency on imported products and may even transform itself into an exporter country, capable of anticipating medicinal shortages in the future.
The construction of the factory will be completed in two phases. The production plant’s annual production capacity shall reach 15 million units in the first phase and progress to an annual production capacity of 48 million units upon entering the second phase of construction. These infusion solutions and injectable medicines will cater to the needs of patients in Indonesia and be exported to other countries in the Asia Pacific region.
(Source: B Braun Asia Pacific)
A mobile and web-based medical records application with life-saving potential is serving pregnant women and midwives in rural Indonesia. The e-Health and Telemedicine SIGHT in Indonesia is developing the technology with two grants, one from SIGHT administration and another from the Humanitarian Action Committee.
In December 2015, the SIGHT administration awarded $16,000 to SIGHT volunteers in Bandung, Indonesia, to fund a small pilot program for their app. The pilot included 20 midwives from the School of Midwifery at Universitas Padjadjaran. The technology helped generate and organize medical records for pregnant women and their overworked midwives. The app replaces paper and pen records that patients keep and hand off to midwives during checkup.
The app allows mothers and midwives to track pregancies and share knowledge about proper care. For mothers it provides educational messages for each stage of pregnancy, reminders to go to check ups or get vaccinations, and interactive activities for mothers and babies to encourage exercise and health awareness. For midwives, the app offers professional development updates and a database of patient records, scheduling assistance and other functions.
(Sources: IEEE Sight)
Indonesia, which is the fourth most populous country in the world, aspires to fully implement the world’s largest universal health care system by 2019. In doing so, it hopes to reduce incidents of non-communicable diseases – including cardiovascular disease, cancer, chronic obstructive pulmonary disease, diabetes and mental health conditions. Indonesia’s growing middle-class and high rate of urbanization, has led to a change in its citizens’ lifestyles and an increase in the prevalence of non-communicable diseases in the country.
Indonesia and Denmark are now upscaling and broadening their partnership, with Indonesia learning from the Danish model of healthcare in various areas, such focusing on developing the primary sector and general practitioners, and how they link up to both prevention at the municipality level and to hospital treatment; early diagnosis and treatment at the lowest care level; prevention strategies to address risk factors; using data for strategic decision making in the health care sector, among others. These are areas that require attention in Indonesia’s health care system.
(Source: Jakarta Globe )
Panasonic Healthcare Co., Ltd. has announced the signing of a distributorship agreement with PT. Gobel Dharma Nusantara for the distribution and service support of medical IT solutions, starting its medical IT business in Indonesia. As a start, Panasonic Healthcare plans to launch patient queueing and registration solution systems for hospitals during 2017.
The implementation of the national social security program in Indonesia has led to a shortage of medical facilities and resources become an issue and using medical IT to improve healthcare efficiency, services and quality is becoming an urgent necessity.
Leveraging its experience in the medical IT business in Japan and the strong local network of the Gobel Group, Panasonic Healthcare is determined to develop software, systems and services that are tailored to the healthcare environment in Indonesia and fit in with medical department and patient flows, aiming at providing total medical IT solution services as the final goal.
(Source: Panasonic Healthcare)
The Indonesian government has officially launched the Indonesia Healthcare Corporation (IHC), which is a holding company for a network of more than 70 hospitals owned by the Ministry of State-Owned Enterprises. The concept is inspired by large hospital groups which operate under a single management, such as the Fortis Healthcare group of hospitals in India.
Many state-owned hospitals lack healthcare specialists, nurses, analysts, radiographers, etc. Data from the World Bank in 2012 shows Indonesia has only 0.3 doctors per 1000 inhabitants. The aim of the re-organization is to improve business processes in state-owned hospitals and centralize procurement processes, re-negotiate terms of agreements with with manufacturers and distributors of pharmaceutical products and medical devices. The Ministry of State-Owned Enterprises expects that this will optimize efficiency and equalize the quality standard of service in terms of medical facilities at these hospitals.
(Source: The Jakarta Post)
A new Presidential Regulation now stipulates that specialist doctors will be assigned to underdeveloped regions of the country upon graduation. This rule will apply initially in the fields of pediatrics, obstetrics/gynecology, internal medicine, general surgery and anesthetics.
This is a mandatory work program, and any specialist doctor graduating from a public Indonesian university or from an overseas university using a government scholarship must participate in the work program. The program is deemed necessary as many regions lack specialist doctors, as the majority of doctors are concentrated in Jakarta, Yogyakarta, North Sulawesi and Bali. In 2017 alone, it is extimated that the country needs 460 more pediatricians, 355 obstetricians and gynecologists, 388 internists, 546 surgeons and 172 anesthetists.
(Source: The Jakarta Post)
Indonesian President Joko Widodo has invited Indian investors to invest in the Indonesian pharmacy, IT, and automotive sectors when Jokowi attended a Collective Call event with 20 CEOs in India. During the event, both countries signed a Memorandum of Understanding (MoU) on trade standardization. The Indonesian Minister of Foreign Affairs, Retno L.P. Marsudi said that one of the areas where both countries would cooperate is the pharmaceutical sector. According to her the Indonesian government particularly encourages investments in the field of raw materials for drugs in Indonesia
Following the event, India announced that its investors will invest about USD 135 million into the Indonesian pharmaceutical sector. This investment will be conducted in two stages involving USD 35 million in the first and the remaining USD 100 million in the last stage. India pharmaceutical companies’ investments will be most likely by setting up factories producing pharmaceuticals in Indonesia.
(Source: Antara News)
To raise awareness of AIDS, the Ministry of Health has provided Voluntary and Counseling Testing (VCTs) in several cities including Surabaya and Yogyakarta. This is due to the the growing numbers of HIV/AIDS patients in Indonesia. From 2005 to 2015, there has been a 3.2% of growth per year on new cases of HIV/AIDS in Indonesia, where the highest number of HIV/AIDS infection were found among housewives with 10,626 cases, followed by 9,603 cases among non-professional workers, 9,439 cases of entrepreneurs, 3,674 cases of farmers/fishermen, 3,191 cases of laborers, 2,578 cases of sex workers, 1,819 cases of civil servants, and 1,764 cases of students.
The unexpected numbers, particularly among housewives, have pushed the Ministry of Health to provide VCT. In Yogyakarta, VCT has been available in five districts/cities with almost all of the private hospitals and community healthcare centers offering the service. The Yogyakarta Health Office hopes that the public will come forward to undergo HIV/AIDS testing and make use of the offered services.
Currently there are three million Hepatitis C patients in Indonesia with more than 15,000 fatalities due to the disease. To respond to the growing number of Hepatitis C patients, the Indonesian Ministry of Health is inviting tenders for the procurement of Hepatitis C medicine, Sofosbuvir.
Sofosbuvir is part of the Direct Acting Antiviral (DAA) group’s medicine. It is recommended by the World Health Organization (WHO) for the treatment of Hepatitis C. The Indonesia’s Food and Drug Monitoring Agency (BPOM) has also permitted Sofosbuvir to be sold in Indonesia beginning in July 2016.
The Director of Indonesia AIDS Coalition (IAC), Aditya Wardhana, while praising the tender as a sign of the government’s effort in curbing the disease, has also called for the government to buy the generic version of the medicine, which is priced at 0.5% of the price of the patented one, which costs USD 975 per pill. The generic Sofosbuvir can be obtained from India at a cheaper price of USD 3.90 per pill.
BPJS Kesehatan, which is the state health insurance agency, has grown to a membership of 170 million. To deal with its growing membership, the government, particularly the Ministry of Health, has directed government hospitals to serve BPJS Kesehatan members better. A number of private hospitals have also started to serve them.
The Indonesian Vice President, Jusuf Kalla, has voiced his hope that the state government will cover the service charges provided by BPJS Kesehatan. The government will be tasked with controlling and managing the implementation of BPJS Kesehatan, and to avoid fraud in the use of BPJS services, such as dispersal of medicine. To optimize BPJS Kesehatan’s functions, the Ministry of Health has asked President Joko Widodo to resolve issues concerning deficit in the system worth USD 524.46 million.
(Sources: Antaranews, Tempo.co)
The Indonesian government has established a new regulation regarding tobacco excise through a new regulation called “Peraturan Menteri Keuangan (PMK) No.147/PMK.010/2016”. Under the new regulation, the management of various matters will be reviewed, such as the production of tobacco, labor-related issues, and tobacco excise revenue. The regulation is expected to improve control over excisable consumer goods, namely tobacco. It is hoped that the regulation will help to boost the state revenue potential generated from the tobacco excise, and contribute to safeguard the health of the public.
Under the new regulation, tobbaco products from machine-rolled white cigarettes will have the highest excise, which is 13.46%, while the lowest excise is on tobacco products from hand-rolled kretek cigarette (Sigaret Kretek Tangan IIIB) is 0%. The weighted average of excise increased is about 10.54%.
According to the government, tobacco excise taxes contributes significantly to state revenue. In 2016 the revenue generated from tobacco excise was recorded at USD 10.4 billion, approximately 96.7% of the total national customs income. On the other hand the number of active smokers in Indonesia has reached 90 million people, of which 10% are children. The government and several agencies and communities are hoping that the revenue will be channeled to provide and develop medical services for the public.
(Sources: Antaranews, Tempo, Reuters)
Tuberculosis is still a threat to Indonesia, as it was the second country after India with the most patients in 2015. Between 2015 and 2016, around 32 people have been infected by tuberculosis in Eastern Aceh alone. These cases are just some of the many tuberculosis cases recorded in Indonesia.
There are various ongoing R&D projects by Indonesian researchers to develop a more effective tuberculosis vaccines. For instance Bio Farma, a state-owned enterprise, has announced that its research on the tuberculosis vaccine is still in early phases and that it will take four or five more years to complete its project. Once completed it hopes its product will replace the current TBC vaccine, BCG. This new vaccine is said to be more essential for TBC patients as the vaccine is an antigen (protein), which in turn will optimize the anti-body.
(Sources: Antaranews, Tempo.co)
Navis Capital Partners, a Kuala Lumpur-based private equity firm, has signed an agreement with one of the largest medical device distributors in Indonesia, PT Tawada Healthcare for an undisclosed sum of investment, subject to regulatory approval.
Tawada represents many global, blue chip healthcare equipment manufacturers and has a nationwide network of 13 offices and warehouses, over 320 employees and 2,000 customers including hospitals, clinics, laboratories, and private practices across Indonesia. The medical devices industry in Indonesia, estimated at about USD 1 billion, is set to grow 15 to 20% per annum over the next 5 years fueled by the rollout of a government-funded universal healthcare and insurance scheme, and the growing affluence of the population. The strategic partnership will spur the group’s growth both organically and through acquisitions.
(Sources: The Singapore Venture Capital & Private Equity Association, Deal Street Asia)