Aged care to Indonesia

Trends and opportunities

The market

According to the Precedential Regulation No. 13 of 1998, the ‘elderly age’ cohort in Indonesia commences at 60 years of age. By 2030, GOI estimates the number of elderly people will have increased to 36 million of a total 245 million Indonesians. This age group will expand to 80 million in 2050 and be dominated by females. (Source: Directorate General of Social Rehabilitation, ‘Ageing in the 21st Century’,1 Nov 2012)

Senior healthcare facilities, residential senior homes and palliative senior care are at a very early development stage in Indonesia. A slow acceptance of the senior living concept is reinforced by Indonesian culture where pensioners often move into the home of one of their children or return to the place where they were born and grew up. Currently there are more elderly people living in rural areas than in urban areas, the highest concentrations are located in Yogyakarta Province (13 per cent of the population), East Java (10 per cent) and Central Java (10 per cent). Based on the Health Research Facilities in 2011, almost half (45 per cent) of Indonesian elderly are still expected to work productively to finance their home life despite the concerning number of high multi-pathology of chronic diseases they suffer from such as hypertension, diabetes, heart disease, stroke, osteoarthritis and dementia alzheimer. The level of welfare paid to the elderly is still low, so they are forced to work to pay for their home life. (Source: The Department of Health, Information and Data Centre of Aged Care bulletin, Q1 2013)

Geriatric clinic availability is low, limited to around five per cent of all public hospitals and there is a lack and inequitable distribution of health services across Indonesia, including geriatric nurses.

The Indonesian Minister of Health and the Minister of Social Affairs recognise the importance of health care infrastructure and services to the elderly. This creates new healthcare needs to bring services to seniors with an emphasis on preventive and curative treatment and facilities.


With the growth of private hospitals in major cities across Indonesia, there is the opportunity to build high-end senior living facilities centred on clustered housing estates for elderly care, as the elderly population continues to expand with around 10 percent living in Greater Jakarta. There are a number of major developers who are aggressively operating in the field of healthcare services, but they have limited expertise in the aged care field.

Aged care counselling services are needed to provide consultancy to manage age related psychological conditions, to promote a health education to the elderly, families and community and to help seniors to increase the quality of life and happiness in their golden years.

Potential opportunities exist for the professional training of geriatric nurses and caregivers. Most “nursing homes” in Indonesia provide social services, but with a very limited capability to provide comprehensive nursing care, such as wound care, modified eating pattern and other specific interventions related to their elderly diseases.

There is emerging demand for medical devices for the elderly include physiotherapy equipment, mobility aids and other rehabilitation products for home. These products are required as a complement to minimal invasive treatment.

Competitive environment

The Netherlands Company Inis Excellent developed a high level senior living residence in Jakarta. Based on joint-venture cooperation, PT Inis Indonesia started their operation in June 2013 to promote RUKUN senior living. This compound is aimed as a residential resort where seniors can enjoy an active, independent and productive lifestyle. The concept is a rental model with the 60+ age restriction. PT Inis Indonesia also provides home care, appliances, health care consulting and training modules on a strategic and tactical level to health care organisations within Indonesia.

With the concept of Medical City and Senior Living for the Indonesian middle class, a Japanese service company, Long Life Holding Co Ltd, has established a joint-venture with property developer, Jababeka to build a nursing home, called Senior Living D’Khayangan in the Cikarang area. The development of the nursing home is set to occur in two phases. The first phase was officiated in September 2014 and stands on 3.5 hectares of land, boasts apartment units and a villa. Property developer Jababeka is on course to complete its US$70 million nursing home by 2016. (Source: The Jakarta Globe, Jababeka to Finish Upscale Nursing Home in West Java 2016, 3 Oct 2014)

The leaders for elderly medical devices catering to seniors in this market are Japan, Germany and Korea. Australia must be competitive in terms of product innovation and pricing in the market.

Marketing your products and services

Market entry

It is crucial that companies:

  • Support importer, distributors and retailers with marketing and promotional collateral and spend, as the first stage to enter the market.
  • Appoint the right business partner who has an Import Identifier Number.
  • When you introduce your product and services capability, a track record with other markets, especially in ASEAN, is an asset.
  • Visit the market on a regular basis due to importance of building your presence and demonstrating commitment to penetrate the business in this dynamic market.
  • Prepare comprehensive information packs profiling your company, product specifications, pricing and terms of payment.
  • Participate in major trade exhibitions to showcase products/services to relevant audience/buyers to build connections and in-depth knowledge.

Distribution channels

A local agent/partner is crucial to effective business penetration in Indonesia. Once you appoint a local partner, a strong willingness to invest in education and regular visits is crucial in leveraging your brand awareness and sales revenue in this market.

Links and industry contacts

Key government, related industry and associations:

The National Elderly Commission (Komnas Lansia) (Bahasa Indonesia)
The Ministry of Health of the Republic of Indonesia (Bahasa Indonesia)
The Indonesian National Nurses Association (PPNI) (Bahasa Indonesia)

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