Opportunities for Swiss Companies in the Indonesian Medical Devices Market
MEDTECH INDUSTRY INDONESIA
OFFICIAL PROGRAM
OPPORTUNITIES FOR SWISS COMPANIES IN THE INDONESIAN MEDICAL DEVICES MARKET - INDONESIA This report presents the results of a market study evaluating opportunities for Swiss medical devices manufacturers in different sub-sectors of the Indonesian market. The evaluation considers the strength of Swiss manufacturers as well as trends on the Indonesian medical devices market. For companies deciding to start marketing their products in Indonesia this report also comprises regulatory requirements and recommends market entry strategies. Language: English Number of pages: 28 Author: PT PRIME Consultancy Other architectural Reports: Are you interested in other architectural Reports for other sectors and countries? Please find more Reports here: www.s-ge.com/reports
DISCLAIMER The content of this study report does not reflect the official opinion of Switzerland Global Enterprise. Responsibility for the information and views expressed therein lies entirely with the authors.
Contents
5.1. SWOT-Analysis __________________________ 24
1. EXECUTIVE SUMMARY _______________________5 2. METHODOLOGY AND LIMITATIONS ____________6
5.2. Recommendations Market Entry ______________ 25
6. APPENDIX _________________________________ 27
3. INDONESIA’S MEDICAL DEVICES MARKET ______8
6.1. List of Interviewees _______________________ 27
3.1. Overview _______________________________ 8
6.2. Classification of Medical Devices ______________ 27
3.2. Sub-Sectors of relevance _____________________ 8 3.2.1. Diagnostic Imaging ______________________ 10 3.2.2. Diabetes Care ___________________________ 11 3.2.3. Emergency Care & Mobile Care Devices _________ 11 3.2.4. Implants and Orthopedic Appliances ___________ 11 3.2.5. Respiratory Devices ______________________ 12 3.3. Supporting Technologies ___________________ 12 3.3.1. IT Solutions for Hospital Management _________ 12 3.3.2. Medical Waste Technology _________________ 14 3.4. Product Selection & Procurement ______________ 14 3.5. Competitor Analysis _______________________ 15 3.6. Logistics and Distribution Services _____________ 16 3.7. Human Resources _________________________17 3.8. Industry Trends __________________________17
4. REGULATORY OVERVIEW FOR MARKET ENTRY 20 4.1. ASEAN Regulations _______________________ 20 4.2. Import Regulations _______________________ 20 4.2.1. Product Licensing Requirements and Process ____ 21 4.2.2. Logistics and Distribution Services ___________ 21 4.3. Foreign Corporate Establishments _____________ 22 4.3.1. Representative Office _____________________ 22 4.3.2. Foreign Owned Limited Liability Company ______ 22
5. MARKET PROSPECTS _______________________24
List of tables
Table 1: Indonesia’s medical devices imports by high potential sub-sectors in US$ million ........................................................... 9 Table 2: Health care spending in Indonesia, comparing 2001 and 2011 ..........................................................................................18 Table 3: Health challenges in Indonesia, comparing 2010 and 2030 (reasons for death) .............................................................. 19 Table 4: Licenses required for the distribution of medical devices.................................................................................................. 22
1. Executive Summary ASEAN countries are expected to be the next most interesting emerging medical devices market in the world. Indonesia alone, with its more than 240 million citizens, represents already one third of this ASEAN market and deserves therefore close attention. The Study provides market insights to Swiss companies allowing for further decision-making on entering the medical devices market in Indonesia. Recommendations on attractive sub-sectors and niches for Swiss medical devices manufacturers in the Indonesian market have been identified matching the need in Indonesia with the expertise in Switzerland. Indonesia’s demand for medical devices and technology is diverse. In fact, the health sector shows to be a severely underserved market. Public and private health providers are aware of this lack and have pledged to expand and upgrade health services across the country with implications on the respective medical technology and equipment. Changing lifestyles of the middle income bracket has led to a shift towards illnesses in which’s treatment western cultures have already experience. Swiss companies should take advantage of the huge market prospects that are at offer. Looking at the supply side, Switzerland is, also in Indonesia, known for high quality and precision technology as well as the innovation culture of the sector. Five sub-sectors, namely Diagnostic Imaging, Diabetes Care, Emergency Care and Mobile Care, Implants and Orthopaedic Appliances, Respiratory Devices, and two supporting sectors, namely IT Solutions for Hospital Management and Medical Waste Technology, have been identified as immediately attractive to be approached. The assessment of further trends and possible fields of interest has led to additional recommendations and refinement of market entry strategies:
Be locally present High precision branding Offer convincing sales and after-sales services Win over the doctors Start in urban areas Cluster your strengths
The Study gives an overview on the Indonesian market for medical devices, including competitor analysis in the respective market, information on product selection and procurement, information on pricing as well as relevant aspects about logistics and distribution. Information about legal aspects such as intellectual property rights and rules concerning foreign and domestic companies has been incorporated in addition. Market prospects for Swiss companies are outlined in a SWOT analysis, including future challenges, and leading to recommendations for a market entry.
MEDTECH INDUSTRY INDONESIA
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