Aged care to Indonesia

Trends and opportunities

The market

As the fourth most populous country in the world and with a middle-class population forecast to increase to 135 million by 2030, coupled with greater awareness of the importance of maintaining a healthier lifestyle, Indonesia has a growing demand for seniors living services. In 2019, the percentage of elderly in Indonesia had reached 9.6% or 25.64 million people (Source: Central Bureau of Statistics, Elderly Citizens Statistic 2019, Indonesian language only). The Indonesian Ministry of Health projected that by 2030, the population of elderly will reach 40.95 million and by 2035, 48.19 million (Source: The Indonesian Ministry of Health, Elderly Population Analysis 2017, Indonesian language only).

The level of disability for older people  in Indonesia is relatively high with multi-pathology of chronic diseases such hypertension, diabetes, heart disease, stroke, and Alzheimer.(Source: National Population and Family Planning Board, Demographic Information Vol. 1 Year 2019, Indonesian language only). Geriatric clinic availability is low and there is a lack and inequitable distribution of health services across Indonesia, including geriatric nurses. 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.

In September 2014, a new association of Indonesia Senior Living Association (ASLI) was established. ASLI is an industry organisation formed by a group of industry, government, and senior citizen support groups focused on improving quality of life for seniors in Indonesia. The first Senior Living Industry Conference was held in 2015 and brings together stakeholders to develop the quality of senior living facilities and services in Indonesia.


  • Potential opportunities exist for the professional training of geriatric nurses and caregivers.
  • There is demand for medical devices for the elderly including physiotherapy equipment, mobility aids and other rehabilitation products for home care. These products are required as a complement to minimal invasive treatment.
  • There is the opportunity to build high-end senior living facilities centred on clustered housing estates for elderly care. There are a number of major developers who are aggressively operating in the field of healthcare services, but have limited expertise in seniors living field. Australian aged care provider, Living Well Communities have entered the Indonesian market and had established joint project with several Indonesian property developers to develop senior living houses.
  • Potential demand exists for aged-care counselling services to manage age-related psychological conditions and to provide health education to the elderly.
  • Additionally, there are opportunities for consulting services to help Indonesia’s retirement residences, nursing homes and aged care facilities reach international standards.

Competitive environment

International stakeholders in aged care that are starting to build their presence in the market include:

  • Japanese company, Long Life Holding Co Ltd has established joint-venture cooperation with Jababeka property developer to build a nursing home, Senior Living D’Khayangan in the Cikarang area.
  • Leisure Care USA, a One Eighty company and leader in retirement community management has been appointed as RUKUN senior living consultant. The retirement complex covers 35 hectares outside Jakarta and aims to provide a luxury lifestyle complete with beautifully landscaped gardens, a swimming pool, a jogging track and even fishing facilities.
  • Sada Jiwa, an aged care residence in Bali. Inspired by Japanese aged care services, Sada Jiwa is trying to change the face of aged care in Bali through holistic services that not only support good physical health for the aged, but also mental, spiritual and social health.

Tariffs, regulations and customs

Regulatory Developments

To establish a senior living residence, the foreign investor and its Indonesian partner must secure a recommendation from the Indonesian Ministry of Social Affairs.

Based on the Indonesian Investment Coordinating Board (BKPM) regulation, the investment application for Seniors Living business will be categorised under the Indonesia Standard Industrial Classification (KBLI) of 87302. The maximum limit for foreign ownership is up to 67 per cent, and foreign companies are allowed to invest in any location throughout the country. (Source: BKPM, KBLI. Register for free to search: KBLI 87302. Accessed by August 2020, Indonesian language only).

All medical devices for the elderly must be registered with the Ministry of Health of the Republic Indonesia, Directorate General of Pharmaceutical Services & Medical Devices, and Directorate of Medical Device Production and Distribution Development (Source: Indonesian Ministry of Health, Health Ministry Regulation No. 60 Year 2017, Indonesian language only) .

Marketing your products and services

Market entry

  • As the first stage to enter the market, participating in a major local trade exhibition and trade mission is a good start to build connections and in-depth knowledge.
  • A track business record with other markets is an asset, especially in ASEAN.
  • A local agent/partner is mandatory to effective business penetration in Indonesia.
  • A strong willingness to invest in education and regular visits is crucial in leveraging brand awareness.
  • 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.

Links and industry contacts

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