Indonesian imports of dental equipment and supplies reached an estimated value of $57 million in 2010, a significant increase over the 2009 figure of $49 million. The market sector continues to grow over past years in line with increasing consumer demand for dental care. The Indonesian dental market is heavily dependent on imports. The U.S. is the fifth largest exporter of dental equipment and supplies to Indonesia, accounting for 5 percent of total imports. The market is highly competitive, however, U.S. brands are accepted and perceived to be of high quality. Import duties ranging from 0-10 percent are imposed on dental equipment and supplies. In addition, a VAT of 10 percent is imposed on all imported products. U.S. companies must appoint an agent or a distributor to register and sell their products in Indonesia.
The demand for dental equipment has increased significantly in recent years. Industry sources forecast a positive outlook for the market of dental products in coming years. Due to the strong Rupiah exchange rate, many importers and distributors are looking to the U.S. to supply dental equipment and supplies. This has created greater market demand for U.S. products. Cosmetic dental work has become increasingly popular in Indonesia. Some of the procedures include teeth whitening, porcelain veneers, bonding, dental crowns, dental implants and white fillings. Business sources forecast the dental market to increase at an annual rate of 10 to 15 percent as the Indonesian economy grows and the awareness of health care rises.
Several factors that influence growth in the Indonesian market are:
• The majority of dental equipment is imported
• Increased awareness of dental health in the general population
• Government campaigns to improve oral care
• Consumer lifestyles
• Growing affluence has increased the demand for cosmetic dental work.
• Proliferation of new dental clinics operated by dental specialists
• New specialists are entering the marketplace skilled and trained with state of the art equipment
• Demand for dental services has fueled the need to replace outdated dental technology
• General modernization of public and private hospitals and health centers (Puskesmas)
The total import market for dental equipment and supplies in Indonesia was estimated at $57 million for 2010. Direct recorded imports from the U.S. increased slightly from $2.4 million in 2009 to $2.6 million in 2010. The actual import value of U.S. products could be higher than was recorded, since many Indonesian companies import U.S. products through Singapore intermediaries. The total value of imported dental equipment and supplies from Singapore increased significantly from $5.3 million in 2009 to $6 million in 2010. Imports from China also increased by 15 percent.
It should be noted, however, that accurate, consistent figures regarding all imports are hard to come by. Statistical discrepancies can be explained by problems such as lack of transparency in customs practices, inconsistent data and recording methods, and problems in gathering statistics on specific imports.
Best Sales Prospects
Based on interviews with dental suppliers, best sales prospects for U.S. suppliers are high technology dental equipment and supplies in the mid-price range. Other products with high potential include dental materials, burs, endodontic devices and supplies, handpieces, instruments and materials for modern aesthetic dentistry.
Domestic producers only produce dental chair units. However, these units are assembled utilizing imported components. Public hospitals in Indonesia are required to use locally made products or products with local content. The primary company which produces dental chairs and units is Andini Sarana.
Third country producers of dental equipment competing with the U.S. include Japan, China, Singapore, Thailand, Korea, Malaysia, Germany, Taiwan, Brazil, and Italy. Asian countries dominated the market with over 75 percent of the total imports in 2010, followed by European countries (4 percent) and other countries (16 percent). More buyers are turning to countries that offer less expensive products like China, Korea, Brazil and India. Among the major third country suppliers present in the market are Planmeca (Finland), Kavo (Germany), Castellini (Italy), Belmont (Japan), and Gnatus (Brazil) for dental units, GC (Japan) for dental materials, and Otto Leibinger (Germany) and Garfield (Pakistan) for dental instruments. U.S. products are highly regarded by both public and private buyers because they are particularly strong in the areas of high technology. The U.S. holds approximately 5% market share in dental equipment and supplies imported into Indonesia in 2010. U.S. sales are expected to grow in the next few years. Among the major U.S. suppliers present in the market are: Adec dental units, Alpha Dent composite and bonding materials, Discus Dental whitening, ClassOne orthodontics, 3M dental materials, Kerr composites, Densply dental products, and BioHorizons dental implants.