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Indonesia

Health and medical to Indonesia

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(Last updated: 19 Jul 2007)

Trends and opportunities

The market

There are around 1111 general hospitals operating in Indonesia, of which, 888 are general hospitals providing basic medical services. The distribution of hospitals, particularly private hospitals, is concentrated in Java (531 hospitals) with the other islands accounting for the remaining 48 per cent of the total number of hospitals:

  • Sumatra – 277 hospitals
  • Sulawesi –112 hospitals
  • Kalimantan – 84 hospitals
  • Maluku and Irian Jaya – 42 hospitals

Affluent locals and expatriates source medical treatment from private and/or international hospitals. There are 518 private hospitals in Indonesia. For cases that Indonesian hospitals cannot handle, patients are usually referred to Singapore or Australia. Overall, there is enormous pressure on the hospital system to rationalise and improve efficiencies.


Lower income families source medical treatment from general public hospitals where staffing ranges from general practitioners to specialists in surgery, obstetrics, gynaecology and paediatrics at the larger hospitals. Alternative/traditional medication is also widely used.


A relatively comprehensive public primary healthcare delivery system is in place, which through a hierarchical system of health centres (PUSKESMAS) and sub-centres (POSYANDU), reaches over 3000 subdistricts within Indonesia. Simple clinical, curative, family planning and other services are provided.


Secondary and tertiary level services are provided by general public hospitals, which operate at the district, provincial and central levels and are administered by the Ministry of Health. Staffing typically ranges from general practitioners at the lower levels to specialists in surgery, obstetrics, gynaecology and paediatrics at the larger hospitals, which function as teaching and referral centres.


The role of the armed forces is significant within the public health sector, as they run about 18 per cent of the general hospitals.


The contribution by private hospitals to healthcare delivery has been hindered by the crisis but there is likely to be a return of significant interest from foreign investors once the economy starts to move.

Opportunities

Australian experience and expertise is relevant to a number of areas in the Indonesian health industry and opportunities currently being pursued by Australian suppliers include:

  • private hospital development and management projects (in partnership with local organisations)
  • alliances with strategic specialist providers (eg. coronary care, eye and ear institutes) and local clinics
  • provision of private health insurance schemes
  • hospital staff (both paramedical and administrative) training
  • export of medical and hospital equipment
  • healthcare treatment in Australia

In future hospital developments, one of the major sources of investment and interest is from local Indonesian construction and property development companies. In hospital management, these Indonesian companies are frequently seeking offshore expertise, including management capability from Singapore, Germany, USA and Australia.


Australia is well positioned to take a substantial role in these developments, as Australian health sector capabilities are broadly recognised in the community. There are a number of private referral services operating in association with Indonesian doctors and hospitals, facilitating the transfer of private patients for more advanced treatment in Australia.

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Tariffs, regulations and customs

The import tariff for medical equipment ranges from five per cent to 10 per cent with a Value Added Tax of 10 per cent.


Customs authority contact details:


Directorate General of Customs and Excise
Jl. Jenderal Ahmad Yani
Jakarta 13230
PO Box 108 Jakarta 10002
Tel: (62 21) 489 0308
Fax: (62 21) 489 6206

Industry standards

The Indonesian Government has imposed community service obligations on private hospital providers by requiring that at least 15 per cent of their beds be made available for the lower income groups, with the charges for these beds set significantly below the cost of providing the service, and thereby requiring subsidy from other areas of the hospital's operations.


Government support for the private hospital initiative has been coupled with deregulation of private hospitals and allowing foreign investment in the construction of hospitals. In 1990, the government liberalised hospital regulations to allow private companies to own hospitals.


The government body that gives accreditation to hospitals is:


Accreditation Committee for Hospitals and Other Health Facilities (KARS)
Directorate General of Medical Services
Ministry of Health
Gedung Depkes Blok B Lt V Km 507
Jl. H.R. Rasuna Said X - 5 No. 4 – 9 Jakarta 12950
Tel: (62 21) 520 1590 Ext 5303
Fax: (62 21) 526 5717

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Marketing your products and services

Market entry

Australian suppliers should consider the following factors in order to enter the Indonesian health industry:

  • Collaboration with major hospitals for referring patients to Australian hospitals.
  • Monitoring projects by multilateral funding agencies in Indonesia.
  • Keeping in contact with industry associations and networks for opportunities in the industry.
  • Hospitals, medical clinics source medical equipment from local distributors. This is mainly based on the consideration of after service support. Choosing the right local partner/distributor is essential.
  • Providing sufficient technical assistance and training for the local technical staff, which will enable them to conduct any repair required for the equipment.

Brand is a major consideration for Indonesian customers when purchasing medical equipment. One way of raising brand awareness of medical equipment is through a seminar and/or workshop targeted to medical practitioners and medical equipment suppliers.

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Links and industry contacts

Heath and medical-related resources

Hospital Network - www.hospitalnetwork.com 
Longterm Care Provider - www.longtermcareprovider.com
Medical and Health Equipment - www.medical-equip-guide.com
Medical Supply Chain - www.medicalsupplychain.com

Government, business and trade resources for Indonesia

Directorate General of Customs and Excise - Indonesia - www.beacukai.go.id 
The Department of Foreign Affairs and Trade (DFAT) - www.dfat.gov.au/geo/indonesia/index.html
TradeIndonesia.com - www.tradeindonesia.com
IndoExchange - www.IndoExchange.com


Department of Health
Jl. HR Rasuna Said Blok X-5 Kav. 4-9
Kuningan
Jakarta 12950
Indonesia
Tel: (62 21) 520 3871
Fax: (62 21) 520 3871


Department of Industry and Trade
Jl MI Ridwan Rais No. 5
Jakarta
Tel: (62 21) 385 8204


British Chamber Health Care Group
Graha Darya Varia 3rd Floor
Jl. Melawai Raya 93
Jakarta 12130
Indonesia
Tel: (62 21) 725 7972
Fax: (62 21 725 7964


Ikatan Dokter Indonesia (IDI)
Medical Doctor Association of Indonesia
Jl. Sam Ratulangi 29
Jakarta
Indonesia
Tel: (62 21) 390 0473
Fax: (62 21) 390 0473


Perhimpunan Rumah Sakit Seluruh Indonesia (PERSI)
Indonesian Hospital Association
Jl. Danau Sunter Utara Blok J12/68, Podomoro
Jakarta Utara 14350
Indonesia
Tel: (62 21) 651 0962/64
Fax: (62 21) 651 4531


The Jakarta Metropolitan Hospital (IRSJAM)
Jl. Danau Sunter Utara Blok J12/68, Podomoro
Jakarta Utara 14350
Indonesia
Tel: (62 21) 651 0962/64
Fax: (62 21) 651 4531

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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