The Indonesian Medical Device Manufacturers Association (ASPAKI) assesses the potential of domestic medical device industry with a market share value reaching US$2.2 billion per year.
ASPAKI chairman Erwin Hermanto said the domestic medical device market share is significant that the association will optimize the resources of the current industry to capture the potential.
“We are ready to fully support all efforts to improve healthcare services in Indonesia, especially in terms of providing medical equipment,” Erwin said on Tuesday, February 5, 2024.
He cited that the prospects of the medical device industry are still promising in view of Indonesia’s population, which has reached 275 million, and the domestic production market share of medical devices amounted to around US$2.2 billion per year.
On the other hand, healthcare spending as a percentage of Gross Domestic Product (GDP) is around 3 percent, while the standard set by the WHO is 9 percent. This indicates a significant domestic market potential for medical devices.
“We support Health Minister Budi Gunadi Sadikin’s spirit to create a more transparent ecosystem in the healthcare service sector. Regarding the supply chain of medical devices in Indonesia, it is currently too layered,” Erwin said.
In this regard, Minister of Health Budi Gunadi Sadikin asked ASPAKI to maximize production and increase research and development (R&D) activities. He hopes that ASPAKI will be a pioneer for the advancement of the healthcare industry.
Budi said one of the ways to achieve this is by reducing medical device imports through domestic product substitution.
“I hope our industry can supply at least 50 percent of the medical device needs. To justify the domination of the domestic industry, we can secure it by producing high-quality products,” he saidi.
On the other hand, the health minister called for the involvement of ASPAKI and industry players in the domestic healthcare sector to help improve supervision related to services at the Ministry of Health, which is currently not optimal and hinders industry movement.
Industry players in the healthcare sector are also encouraged to increase the Domestic Component Level (TKDN) in every innovation of medical device products produced. “Let’s create the roadmap together, what we can do to focus on building the healthcare manufacturing industry. We ask all of you to increase the TKDN,” he concluded.
