What is the Potential of Indonesia
Healthcare Market?
The
Indonesia
Healthcare Market has shown a positive incline during 2012-2017 but
with respect to the expanding population of Indonesia, the market is still
underserved especially in the underdeveloped and rural areas as of 2017. People
across Indonesia are facing several health care issues due to sedentary
lifestyle and fast food consumption habits, such as obesity, diabetes, and
other cardiovascular diseases, which are demanding for technologically advanced
healthcare infrastructure. The healthcare market has increased on the account
of increasing healthcare facilities, innovation in pharmaceutical manufacturers
and clinical laboratory services and expansion of pharmacy retail chains across
the country. The market has witnessed enhancing innovation in nutritional
health segment, biopharmaceuticals and specialty pharmaceutical products.
Hospitals
in the country contributed to the maximum share of overall healthcare market as
of 2016. Over ~% of the market revenues were generated from the hospitals
segment followed by the pharmaceutical market with ~% in 2017.
The
Indonesia Healthcare market revenue has increased from USD ~ billion in 2012 to
USD ~ billion in 2017 primarily due to rising prevalence of non-communicable and
lifestyle diseases including diabetes, asthma and heart disorders. The industry
has undergone various deregulation programs which has encouraged foreign
investment in the industry. Furthermore, increase in demand for generic
medicines has led the major players in the industry to expand their production
capabilities.
How Has the JKN Scheme Impacted the
Indonesia Pharmaceutical Market?
The
market size of Indonesia pharmaceutical industry has increased from USD ~
million in 2012 to USD ~ million in 2017 at a CAGR of ~%. The market is in the
growing stage supported by favorable government regulations and entry of
foreign players in the space. During 2017, the domestic players dominate the
market with major focus on production of generic drugs. This is driven by the
implementation of universal healthcare system. The program has led to an
increased demand for generic medicines from public and private hospitals
participating in the program. Further, the industry witnessed various
deregulation programs which encouraged foreign investment in the industry. For
instance, the government removed the pharmaceutical industry from its negative
investment list implying 100% foreign ownership is allowed. Major therapeutic
segments was anti-infective due to the prevalence of communicable diseases such
as TB, influenza and others followed by Gastrointestinal, cardiovascular,
Central nervous system, respiratory, musculoskeletal and dermatology.
How Have the Various Segments
Performed in Indonesia Pharmaceutical Market?
Anti-infective
drug sale has contributed to the largest share of ~% in the revenue share of
Indonesia Pharmaceutical industry in 2017. This is mainly due to high
prevalence of bacterial and communicable diseases. This is followed by
Gastrointestinal and metabolism drugs with ~%, cardiovascular system drugs with
~%, Central Nervous system drugs with ~%, and Respiratory system drugs with ~%.
The domestic players have accounted for ~% of the revenue in Indonesia
pharmaceutical market. International players have captured ~% of the revenue
share in 2017 driven by favorable government regulation. Generic drugs have
accounted for the major share of ~% of the revenue share in 2017. The share of
patented drugs has increased from ~% in 2013 to ~% in 2017.
How is the Competitive Ladscape of
Indonesia Pharmaceutical Market?
There
are ~ pharmaceutical companies (~ domestic and ~ international companies)
located in Indonesia and ~% of them are located in Java in 2016. These players
compete on the basis of distribution network, product portfolio, marketing
activities and research and development. The domestic players dominate the
generic drug and OTC drug segment.
How is the Indonesia Pharmacy Retail
Market Growing?
Indonesia
pharmacy retail sector is in the mid to late growth stage with the presence of
over ~ drugstores and pharmacies along with revenue CAGR of ~% in the last five
years. Already established players such Guardian Pharmacy, Kimia Farma, Apotek
K-24 have increased their number of pharmacy retail outlets over the period 2012-2017.
The number of pharmacies operated by Guardian pharmacy increased from ~ in 2013
to ~ in 2016 whereas for Kimia Farma, the number of pharmacies increased from ~
in 2013 to ~ in 2016. Over 2012-2017, the number of pharmacies has inclined at
a CAGR of ~%. Increasing incidence of life-style related ailments such as
Diabetes, Obesity, hypertension and various heart related diseases and
prevalence of communicable diseases such as TB, influenza among the growing
population are the main reasons behind positive growth in pharmacy retail
revenue due to growth in private label goods.
How Have the Various Segments
Performed in Indonesia Pharmacy Retail Market?
Pharmacies
have accounted for ~% of the share of Indonesia pharmacy retail revenue in 2017
whereas drugstores have accounted for ~% of the revenue share. The number of
pharmacies increased from ~ in 2012 to ~ in 2017 with average revenue of a
pharmacy estimated at IDR ~billion in 2017. The number of drugstores increased
from ~ in 2012 to ~ in 2017. West Java has gathered ~% of the total pharmacies
and drugstores in Indonesia in 2015. This can be attributed to more number of
hospitals located in the region. East Java has captured ~% of the pharmacies
and drugstores driven by increase in foreign investment in the pharmacy sector.
What are the Major Companies Operating
in This Space?
The
pharmacy retail market in Indonesia is highly fragmented with major organized
chains (Guardian pharmacy, Kimia Farma, Apotek K-24 and AS Watsons Group)
accounting for ~% of the revenue share in 2016. These players compete on
parameters such as proximity, value added services, availability of drugs,
promotional offers and tie ups with major healthcare institutions. In order to
increase their revenue, the players offer their products through online
portals.
What Factors have driven Indonesia
Clinical Laboratory Market?
Indonesia
Clinical Laboratory Market is in the growing stage. The market has grown at a
CAGR of ~% during 2012 to 2017 with revenue estimated at USD ~ billion in 2017.
The industry has witnessed expansion of private laboratory chains and use of
advanced technology in order to provide high quality laboratory services. With
the implementation of JKN, the demand for laboratory services has further
increased. The public hospitals mostly perform routine test while the esoteric
tests are outsourced to the private clinical laboratories. Due to growing awareness amongst people about
healthy living, private and public laboratories have witnessed an increase in
walk in patients asking for routine checkups which is funded out of the
patient’s pocket. Further, the major private laboratory chains have expanded
their operations in terms of capacity and geographic presence. The six major
private laboratories occupying ~% of the revenue share of Indonesia Private
independent labs in 2016 are Prodia, Kimia Farma, Pramita, Cito, Parahita and
BioMedika.
What are the Major Market Segments in
Indonesia Clinical Laboratory Market?
The
public clinical labs have accounted for ~% of the revenue share in Indonesia
clinical laboratory market in 2017. Private hospital labs have accounted for ~%
in 2017 and private independent labs with ~% of the overall market. The
laboratory chains have been the leading market players in Indonesia in 2016
with ~% of revenue in the overall private independent laboratory market in
2016. Single independent labs have contributed to their lower revenue share of
~% due to their restricted geographic presence.
What Are the Major Competition
Parameters?
The
private independent clinical laboratory market is organized and is composed of
both chain laboratories and stand-alone laboratories. The chain laboratories
are the leading market players in Indonesia. The 6 major players in the
industry are Prodia, Kimia Farma, Pramita, Cito, BioMedika and Parahita which
together accounted for ~% of the revenue share in private independent
laboratory market in 2017.
How has Indonesia Medical Device
Market Grown?
The
market was in the growing stage during 2012-2017 and is almost entirely import
driven. The market has seen increasing number of foreign players supported by
growing number of hospitals or other health centers in Indonesia. There were ~
medical device distributors and ~ medical device production units in Indonesia
as of 2015. Indonesian export performance for medical equipment commodity also
exhibited a positive trend. The main export destination for Indonesian medical
equipment are Singapore, Germany, Japan, the United States, China, the
Netherlands, India, Malaysia, Myanmar and Afghanistan. The demand has increased
majorly for diagnostic imaging, medical consumables, aesthetic, orthopedic and
dental products. This is driven by increased healthcare spending and rising
awareness about different treatment methods. Rising share of esoteric tests has
created demand for modern equipment such as pacemakers with micro-chip
technology, laser surgical device and test kits, which may include monoclonal
antibody technology.
How have the Different Segments in
Indonesia Medical Device Market Performed?
Diagnostic
imaging products have accounted for the largest share of ~% of the revenue
share in Indonesia Medical Devices market in 2017. This is followed by medical
consumable product with ~%, aesthetic devices with ~%, auxiliary devices with
~%, dental products with ~% and orthopedic implants with ~%. Hospitals both
public and private are the major end users of medical devices and have
accounted for ~% of the revenue in Indonesia Medical devices market in 2017.
The medical clinics and Laboratories and other healthcare institutions together
have contributed ~% of the revenue.
What are the Major Companies Operating
in the Space?
The
major local manufacturers include Indo Health Medical, PT Andini Sarana, PT
Trimitra Garmedindo Interbuana, PT Mega Andalan Kalasan and Citra Medika
Lestari. The major international players include GE Healthcare, Siemens,
Philips, Samsung and Hitachi. Major distributors include PT Mensa Bina Sukses,
PT Transmedic Indonesia and PT Surgika Alkesindo.
How has Indonesia Hospital Market
Grown?
The
hospital market grew at a five year CAGR of ~% during 2012-2017 from USD ~
billion in 2012 to USD ~ billion in 2017. Major driving factor for increase in
hospital market was the prevalence of the severe chronic diseases in Indonesia.
Several diseases like Pneumonia, Multi-bacillary (MB) Leprosy and Diarrhea had
increased in the year 2015. The number of specialty hospitals increased from ~
in 2012 to ~ in 2017. The industry is still in the nascent stage with huge scope
for development. The market has witnessed rise in use of digital healthcare
services. For instance, Practo entered the Indonesian market in 2015 providing
consumers the option of searching for doctors through a database of over 4,200
doctors, and covering 60% of the clinics in Jakarta DKI. Further, the market
revenue growth was facilitated by increase in the allocation of the Government
budget from IDR ~ Trillion in 2012 to IDR ~ Trillion in 2017. The foreign
investments rose from USD ~ million in the year 2015 to USD ~ million in the
year 2016.
How have the Major Segments in
Indonesia Hospital Market Performed?
Public
hospitals have accounted for ~% of the number of hospitals. Private hospitals
have registered ~% of the total hospitals in Indonesia in 2016 as the demand
for modern medicine and specialist services increased in the country. General
hospitals have accounted for ~% of the total number of hospitals whereas
specialty hospitals which include hospitals such as mental hospital, leprosy
hospital, eye hospital and others have registered ~% of the total number of
hospitals. Mother and children has accounted for ~% of the number of specialty
hospitals in 2015 followed by maternity hospitals with ~% and mental hospital
with ~% of the share in 2015. Rest of the market includes Eye hospital, leprosy
hospital and pulmonary tuberculosis hospital with ~%, ~% and ~% respectively of
the total number of specialty hospitals in 2015. East Java has gathered ~% of
the number of beds in Indonesia in 2016
Major
hospitals include Siloam Hospital group, Hermina Hospital Group, Rumah Sakit
Mitra, Awal Bros Hospital Group, Sari Asih Group, Ramsay Sime Darby Healthcare
and Eka Hospital group. Major competition parameters for private hospitals are
facilities, number of beds, number of hospitals, fees, quality of
doctors/medical practioners and specialization
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