What is the Size of the Indonesian IVD Market?

What is the Size of the Indonesian IVD Market?

Make sure to visit our In Vitro Diagnostics page, Kalorama's all-in-one resource covering the IVD market. 

Kalorama Information sought to answer that question in its research effort conducted this year by healthcare market analysts based in Malaysia and indonesia. Local IVD lab managers and health care service vendors provided Kalorama's analysts with detailed coverage of Indonesia's in vitro diagnostics market. The Indonesian IVD Market is $233 million, according to Indonesia IVD Market Analysis.  Indonesia is experiencing increasing per capita income among working professionals and middle class, which is triggering a movement from self-medication to clinical and hospital treatment, with the help of subsidized healthcare services. Maternal and child healthcare have improved in recent years, bringing down child mortality rates. For global IVD market figures, consult Kalorama's report, Worldwide Market for In Vitro Diagnostics, 10th Edition

Indonesia's clinical testing market is in line with those of its neighbors, for instance the Malaysian IVD market, which Kalorama studied in a previous report.  

Improving Indonesia's in vitro diagnostics technology and distributing health care services nationwide must span its five main islands - Sumatra, Java, Borneo (Kalimantan), Sulawesi, and New Guinea; two archipelagos – Nusa Tenggara and Maluku Islands); and sixty smaller archipelagos. Major urban areas in 33 provinces of Indonesia include Jakarta (10.3 Million); Surabaya (2.9 million); Bandung (2.5 million); Medan (2.2 Million); Semarang (1.6 million); and Makassar (1.5 million). The population includes various ethnic, cultural and linguistic groups. Indonesia is in transition in many aspects ranging from political and economic to social landscapes. Major health risk factors in Indonesia include malnutrition, obesity, smoking, alcohol consumption, high blood pressure, higher blood glucose, and cholesterol. Communicable diseases such as HIV, Tuberculosis (TB), Hepatitis B and non-communicable diseases such as cardiovascular diseases, cancers, chronic respiratory diseases and diabetes are some of the main causes of death in Indonesia. Dengue, Malaria and diabetes are some of the serious health concerns in the country.

Domestic and Foreign In Vitro Diagnostics Companies and Services

The Indonesian government is focusing on infectious disease control by improving sanitary facilities and improving access to quality healthcare through higher quality medical devices and services. The death rate of communicable diseases has consequently decreased significantly in the last decade. However, Indonesia's non-communicable disease death rates have been increasing year by year. With increased health financing, social mobilization, community empowerment, and government’s priority on primary health care, Indonesia's government is targeting visible achievements in overall health status.

Indonesia's in vitro diagnostics market is not without challenges.  Healthcare facilities currently available in Indonesia are currently inadequate to meet population needs. Existing hospital infrastructure, for example, is not enough to meet the demand. The number of hospital beds in Indonesia in 2015 was estimated to be 1.21 per 1,000 population.  According to World Bank, the health expenditure per capita has increased from $15 in 2000 to $99.4 in 2014. Purchasing Power Parity (PPP) rose three times since 2000 and stood at $299.4 in 2014. The number of employed professionals catalyzed the growth of middle class, which is facilitating growth in expenditure. In the healthcare field, this rapidly increasing expenditure trends hint new market opportunities for market players and investors.

In Indonesia's in vitro diagnostic market, foreign IVD companies are banned from making any direct sales. Only local distribution companies, who have distribution licenses, can engage in Indonesia's in vitro diagnostics market. IVD distribution licenses can be national (valid across the country) or regional, applicable only to a certain province or certain parts of one province. Foreign IVD device manufacturers must work with local distribution companies, since only local distributors with valid distribution licenses are eligible to invoice. However, foreign in vitro diagnostics companies wishing to compete with Indonesian IVD companies and manufacturers have the option to hold import license, if they establish their own office in the country. Many companies prefer to hold import license of their products as it gives them the liberty to work with multiple distributors in the country.

The story of how Indonesia's in vitro diagnostics market will beat the world IVD market in terms of growth is fully described in Indonesia IVD Market Analysis, which provides in vitro diagnostics market segmentation, healthcare and regulatory trends, and examines companies participating in Indonesia's in vitro diagnostics market.