Description
Indonesia Medical Devices Industry
Indonesia, located in Southeast Asia, is the world’s largest archipelago, spanning both Asia and Oceania, earning it the nickname “the country of a thousand islands.” With a population exceeding 280 million, it is the fourth most populous country in the world and boasts the largest consumer market in Southeast Asia. According to CRI, Indonesia’s economy has been growing steadily over the past decade, with a compound annual growth rate (CAGR) of 3.9% for per capita GDP from 2014 to 2023. In 2023, Indonesia’s per capita GDP reached US$4,914, up 2.7% year-on-year. The country’s actual GDP, calculated at constant 2010 market prices, was $1.41 trillion in 2023, a 5.05% increase from the previous year, although this growth rate was 0.3% lower than in 2022. Despite the slight slowdown, Indonesia’s GDP growth rate remains significantly higher than the global average of 2.6%.
The Indonesian medical devices market reached US$4.38 billion in 2023. According to CRI, this growth is primarily due to the expansion of both public and private hospitals and the implementation of Indonesia’s public health insurance system, BPJS-Kesehatan (Jaminan Kesehatan Nasional, or JKN), in 2014. As of July 2023, the system covered 258.2 million people, approximately 90.34% of Indonesia’s total population. These factors have increased demand for advanced medical equipment and supplies, driving the continuous growth of the Indonesian medical devices market.
Indonesia is heavily reliant on imports for its medical devices, with estimates suggesting that over 70% of medical devices are imported, and this figure was as high as 88% before 2022. To boost the local medical devices industry, Indonesia introduced localization content requirements in June 2021, prohibiting the import of 5,400 medical devices across 79 categories for public procurement systems unless they meet a 40% local content requirement. Despite government efforts to encourage local production and adjust import tariffs, Indonesia still relies heavily on imports for advanced medical equipment based on the analysis of CRI. Currently, Indonesia mainly produces and exports lower-value, less technologically advanced medical consumables such as surgical gloves and bandages.
Indonesia has been encouraging foreign investment in its medical devices sector. The government has stated that Indonesia will prioritize using domestically produced medical supplies and will not import medical equipment that can be produced locally, thereby encouraging foreign companies to establish manufacturing plants in Indonesia. Additionally, Presidential Regulation No. 10 of 2021 on Investment List, issued in February 2021, promotes foreign investment by allowing companies to have 100% foreign ownership of imported and regulatory-approved medical devices, giving foreign companies complete legal control over their subsidiaries in Indonesia.
With population growth, economic development, and the introduction of investment-friendly policies, CRI projects that the Indonesian medical devices market will grow at a compound annual growth rate (CAGR) of 9.1% from 2024 to 2033, reaching US$10.47 billion by 2033.
Topics covered:
- Overview of Indonesia’s Medical Devices Industry
- Economic Conditions and Policies for Indonesia’s Medical Devices Industry
- Impacts of COVID-19 on the Medical Devices Industry in Indonesia
- Market Size of Indonesia’s Medical Devices Industry (2024-2033)
- Analysis of Major Medical Devices Manufacturers in Indonesia
- Key Drivers and Market Opportunities in Indonesia’s Medical Devices Industry
- What are the Main Drivers, Challenges, and Opportunities for Indonesia’s Medical Devices Industry during the Forecast Period of 2024-2033?
- Key Players in the Medical Devices Industry in Indonesia and their Competitive Advantages
- What is the Expected Revenue for Indonesia’s Medical Devices Market during the Forecast Period of 2024-2033?
- What Strategies are Major Market Players Adopting to Increase Their Market Share in the Industry?
- Which Segment of the Indonesia Medical Devices Market is Expected to Dominate by 2033?
- What are the Main Adverse Factors Facing Indonesia’s Medical Devices Industry?
Table of Contents
1. Overview of Indonesia
1.1 Geography
1.2 Demographics of Indonesia
1.3 Economic of Indonesia
1.4. Minimum Wage in Indonesia, 2015-2024
1.5. Impact of COVID-19 on Indonesia’s Medical Devices Industry
2. Development Environment of the Medical Devices Industry in Indonesia
2.1. History of the Medical Devices Industry in Indonesia
2.2. Categories of Medical Devices in Indonesia
2.3. Policies for the Medical Devices Industry in Indonesia
3. Supply and Demand of the Medical Devices Industry in Indonesia
3.1. Supply of the Medical Devices Industry in Indonesia
3.1.1. Production Capacity
3.1.2. Production Volume
3.2. Demand of the Medical Devices Industry in Indonesia
3.2.1. Demand Volume
3.2.2. Market Size
4. Import and Export of the Medical Devices Industry in Indonesia
4.1. Import of the Medical Devices Industry in Indonesia
4.1.1. Import Volume and Value of Medical Devices in Indonesia
4.1.2. Main Suppliers of Medical Devices Imports in Indonesia
4.2. Export of the Medical Devices Industry in Indonesia
4.2.1. Export Volume and Value of Medical Devices in Indonesia
4.2.2. Main Destinations of Medical Devices Exports in Indonesia
5. Market Competition of Indonesia’s Medical Devices Industry
5.1. Barriers to Entry in Indonesia’s Medical Devices Industry
5.1.1. Brand Barriers
5.1.2. Quality Barriers
5.1.3. Capital Barriers
5.2. Competitive Structure of Indonesia’s Medical Devices Industry
5.2.1. Bargaining Power of Medical Devices Suppliers
5.2.2. Bargaining Power of Consumers
5.2.3. Competitive Landscape of Indonesia’s Medical Devices Industry
5.2.4. Potential Entrants in the Medical Devices Industry
5.2.5. Substitutes for Medical Devices Products
6. Analysis of Major Medical Devices Brands in Indonesia
6.1. Medtronic
6.1.1. History of Medtronic
6.1.2. Main Products of Medtronic
6.1.3. Operating Model of Medtronic
6.2. Becton Dickinson
6.2.1. History of Becton Dickinson
6.2.2. Main Products of Becton Dickinson
6.2.3. Operating Model of Becton Dickinson
6.3. Johnson & Johnson
6.3.1. History of Johnson & Johnson
6.3.2. Main Products of Johnson & Johnson
6.3.3. Operating Model of Johnson & Johnson
6.4. Siemens Healthineers
6.4.1. History of Siemens Healthineers
6.4.2. Main Products of Siemens Healthineers
6.4.3. Operating Model of Siemens Healthineers
6.5. Philips Healthcare
6.5.1. History of Philips Healthcare
6.5.2. Main Products of Philips Healthcare
6.5.3. Operating Model of Philips Healthcare
6.6. GE Healthcare
6.6.1. History of GE Healthcare
6.6.2. Main Products of GE Healthcare
6.6.3. Operating Model of GE Healthcare
6.7. Boston Scientific
6.7.1. History of Boston Scientific
6.7.2. Main Products of Boston Scientific
6.7.3. Operating Model of Boston Scientific
6.8. Danaher Corporation
6.8.1. History of Danaher Corporation
6.8.2. Main Products of Danaher Corporation
6.8.3. Operating Model of Danaher Corporation
6.9. Stryker
6.9.1. History of Stryker
6.9.2. Main Products of Stryker
6.9.3. Operating Model of Stryker
6.10. Mindray Indonesia
6.10.1. History of Mindray Indonesia
6.10.2. Main Products of Mindray Indonesia
6.10.3. Operating Model of Mindray Indonesia
7. Outlook for Indonesia’s Medical Devices Industry (2024-2033)
7.1. Development Factors of Indonesia’s Medical Devices Industry
7.1.1. Drivers and Opportunities of the Medical Devices Industry in Indonesia
7.1.2. Threats and Challenges facing the Medical Devices Industry in Indonesia
7.2. Market Supply Forecast for the Medical Devices Industry in Indonesia
7.3. Market Demand Forecast for the Medical Devices Industry in Indonesia
7.4. Import and Export Forecast for the Medical Devices Industry in Indonesia
List of Charts
Chart Population of Indonesia, 2009-2023
Chart GDP Per Capita in Indonesia, 2014-2023
Chart Related Policies Issued by Indonesia Government for Medical Devices Industry, 2019-2023
Chart Production of Medical Devices in Indonesia, 2019-2023
Chart Medical Devices Domestic Consumption in Indonesia, 2019-2023
Chart Import Volume of Medical Devices in Indonesia, 2019-2023
Chart Import Value of Medical Devices in Indonesia, 2019-2023
Chart Main Suppliers and their Import Values of Medical Devices Imports in Indonesia, 2019-2023
Chart Export Volume of Medical Devices and Final Products in Indonesia, 2019-2023
Chart Export Value of Medical Devices and Final Products in Indonesia, 2019-2023
Chart Main Export Destinations and their Export Values for Medical Devices from Indonesia, 2019-2023
Chart Production Forecast for the Indonesia Medical Devices Industry, 2024-2033
Chart Domestic Market Size Forecast for the Indonesia Medical Devices Industry, 2024-2033
Chart Import Forecast for the Indonesia Medical Devices Industry, 2024-2033
Chart Export Forecast for the Indonesia Medical Devices Industry, 2024-2033
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