Market Research Reports - Ken Research Number of Hospitals Indonesia

Indonesia Healthcare Market has been driven by Increase in Foreign Direct Investment and
favourable Government Initiatives: Ken Research
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: