The clinical laboratory and diagnostics instruments market in Indonesia has grown considerably and will continue to grow through 2009. Indonesia, the fourth most populous nation in the world and the largest by far in Southeast Asia, makes it one of the world’s largest markets for medical equipment and healthcare services. In addition, Indonesia has experienced multiple disasters (Tsunami, earthquakes, floods) in several areas in the country. These catastrophic events require major reconstruction of medical infrastructure, and thus increase demand for medical equipment, clinical lab and diagnostics instruments, and other medical products. U.S. manufacturers of clinical laboratory equipment should take advantage of this growing market.
Indonesian relies entirely on imports to support its needs for clinical laboratory and diagnostics instruments. Given its 220 million population and its increasing health awareness, Indonesia is a good potential market for clinical laboratory and diagnostics instruments. The market for these products is expected to grow at 10-15% annually.
The sales potential of clinical laboratory and diagnostics instruments is, to a great extent, related to the incidence of the various diseases. Circulatory diseases, infections and parasites, respiratory problems, tuberculosis, digestive systems diseases and cancer are the primary causes of death in Indonesia. All these ailments combined with population growth and aging create further demand in the market as healthcare providers invest in quality clinical laboratory equipment to diagnose and prevent diseases. As laboratories strive to provide quality service, and as accuracy and timeliness of test results are essential, the demand for more advanced equipment increases.
In the private sector, hospitals continue to upgrade their clinical laboratories on a regular basis to meet the growing demand for quality healthcare. Healthcare providers show a growing interest in high technology equipment to improve the delivery and quality of test results.
In the public sector, decentralization has increased the decision-making role of regional governments thus creating a larger market for clinical laboratory equipment. The disasters caused by the Tsunami, earthquakes and floods have also increased demand. Until 2009, the government will continue to focus on rebuilding health facilities that were destroyed.
In 2008, the government has already allocated a total of $2 billion for healthcare development. Over 40% of this amount is designated for medical equipment. The Ministry of Health (MOH) will disburse over $530 million for the procurement and development of hospitals and upgrades of existing hospitals and $29 million for health care centers (puskesmas) in the 33 provinces. Furthermore, the government will continue developing healthcare facilities in remote, underdeveloped border areas and outer islands.
The government has also pushed for the national healthcare plan of 2004-2009 to provide quality healthcare by strengthening laboratory services and other healthcare facilities. This is further pressured by the fact that Indonesia is the country worst hit by avian influenza. As of February 2008, the WHO has recorded a total of 129 confirmed human H5N1 cases and 105 deaths. While non-communicable diseases in Indonesia increase and communicable diseases still pose a threat, the country must remain alert to dangers posed by avian influenza and other emerging diseases.
By Sharon Chandra