Indonesian imports of dental equipment and supplies reached an estimated of $34 million in 2008, a 10 percent increase over the 2007 figure of $31 million. The dental equipment market is estimated to grow by about 10-20 percent for the coming three years. Imports from the U.S. were estimated at $3.7 million in 2008. The U.S. is the fourth largest exporter of dental equipment and supplies to Indonesia accounting for 11 percent of total imports. The market is highly competitive, however, U.S. brands are well 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 substantially over the past three years. Industry sources forecast a positive outlook for the market of dental products in coming years. For the time being, due to concerns about the economy, high dollar exchange rate, and the upcoming presidential election, the market is predicted to maintain the same level as 2008. However, growth of 10-15% is projected for 2010 and 2011. Several factors that influence growth in the Indonesian market are:
- The fact that majority of dental equipment is imported
- Increased awareness on dental health on the general population Intensive government campaigns have raised the level of public awareness on the importance of good oral care. Dental care is one of the lowest priorities in Indonesia's healthcare program. There is a general lack of preventative dental practice in Indonesia and public awareness of good oral hygiene is low. Government campaigns of good oral hygiene will boost awareness and contribute to the growth in the Indonesian market.
- Consumer lifestyles Affluent people are more aware of the need for regular dental check-up. Cosmetic dental work has become popular, especially among public figures and the mid-upper income level.
- Establishment of new dental clinics by dental specialists Indonesia has an estimated 20,000 dentists and around 1,400 new dentists graduate yearly. Dentists are employed in both the public service and private sector. About 60 percent of the dentists have their own private practice. The majority of dentists are located in major cities. Private dental clinics generally have modern and up-to-date equipment, instruments and dental materials. Professional dental care and services with the latest, top-of-the-line technology is increasingly in demand due to increased recognition of the need for quality dental care among the growing middle class.
- Replacement of old dental equipment Currently there are 13 dental faculties and 6 faculties that offer dental diploma program. A number of dental equipment used in the faculties are old, and in need of replacement, hence the demand for newer equipment.
- Upgrades of public and private hospitals and health centers (Puskesmas) Indonesia has 1292 hospitals and 8234 health centers (Puskesmas). These hospitals and Puskesmas provide health services to more than 237 million people spread over the 33 provinces of Indonesia. Central and regional governments continue to upgrade their facilities in order to provide basic healthcare services.
By Sharon Chandra