Life Sciences

An Expert's View about Medical, Health and Cosmetics Products in Indonesia

Posted on: 29 Aug 2012

With a population of over 240 million and given the increasing private sector participation in healthcare services, Indonesia is a large and attractive potential market.

Life Sciences in Indonesia With a population of over 240 million and given the increasing private sector participation in healthcare services, Indonesia is a large and attractive potential market for UK companies in the sector. Market overview The Indonesian pharmaceutical market was estimated to be around US$ 4 billion in 2011. The country’s pharmaceutical market has been steadily growing, and along with increased domestic demand, sales of prescription drugs are expected to grow by approximately 12% in 2012, reaching close to US$ 4.5 billion The medical equipment and supplies market was valued at US$ 421 million in 2011, and expected to grow by 10-12% following the growth of a number of hospitals. Imports account for 97% of Indonesia’s medical device market, mainly comprising of: surgical equipment, over-the- counter test kits, medical lasers and diagnostic equipments Key opportunities Demand for quality healthcare in Indonesia is expected to increase, particularly in terms of: ξ Therapies and treatment equipment for cancer ξ Clinical laboratory equipment for circulatory problems, infections, parasites, and respiratory problems ξ Medical disposables such as syringes, catheters, stomach cups, etc ξ Dental equipment ξ Diagnostic and surgical equipment ξ Dermatology equipment ξ Health food supplements and vitamins ξ Healthcare professional training and education ξ Healthcare IT system Latest export opportunities –Life Sciences Latest export opportunities-Indonesia Getting into the market Foreign companies may take up to a 67% share in companies providing the following services: hospital management, patient evacuation assistance in emergency situations, mental rehabilitation clinics, specialist medical clinics, dental clinics, laboratory clinics and medical check-up clinics. Other healthcare fields of business record different limitations for foreign investment. The appointment of a local agent for the distribution of medical devices in Indonesia is highly recommended. Although direct selling is possible in the private sector, a local agent is vital for selling to public hospitals and governmental institutions. The sheer size of Indonesia means that more than one distributor is often needed if a company is seeking to penetrate second tier cities and rural areas. Agents/distributors are also able to provide value added services largely demanded by medical institutions such as maintenance of equipment, training of sales staff, warehousing and logistics, and after-sales services All healthcare supplies and equipment must be registered with the Department of Health, a process which may be carried out by the manufacturer, packaging companies or importer Import duties of up to 30% apply to medical equipment. In general, electro-medical and other technical equipment are accorded a lower tariff rate (5%), while medical supplies and plastics have a higher rate (20-30%). Clinical laboratory equipment is subject to 5% import tax. All imported medical equipment is subject to a 10% value added tax. There are no technical standard requirements specific to Indonesia More about doing business in India Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. Pooja Thawani, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5257, Fax : +62 21 2356 5352 or email : Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Life Sciences Major Events INDOMEDICARE Expo, 10 – 13 May 2013, Jakarta International Expo Useful links More about OMIS and other UKTI services for exporters
Posted: 29 August 2012

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