This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/4/2019


Unit: USD millions

 201620172018 (est.)2019 (est.)
Total Local Production1,4521,5981,7571,968
Total Exports201221243267
Total Imports1,0351,4502,0302,842
Imports from the US
Total Market Size2,2862,5683,5444,542
Data Source: Indonesian Medical Device Producers Association (ASPAKI), Statistics Indonesia (Badan Pusat Statistik), and U.S. Department of Commerce TradeStats Express
Given its 262 million population, Indonesia relies heavily on imported medical equipment and supplies. This sector presents strong opportunities for U.S. exporters of medical equipment and supplies. Healthcare is a priority in Indonesia’s national development agenda. The central and regional governments continue to build and upgrade healthcare facilities. They are planning to equip community health centers with inpatient facilities and improve their quality of services throughout 34 provinces.  According to Business Monitor International (BMI) Industry View, May 18, 2018, the medical device market in Indonesia, is projected to grow by a 2017-2022 Compound Annual Growth Rate (CAGR) of 9.6%, to US$ 1.5 billion by 2022.

The number of hospitals and clinics in Indonesia is growing despite the economic slowdown which has seen consumer spending in other areas begin to slide. The government encourages private sector involvement in developing hospitals.  According to the Directorate General of Health Services, Indonesia Ministry of Health, Indonesia currently has a total of 2,776 hospitals--1,767 privately managed and 1,009 managed by the public sector.  This reflects the needs for sophisticated medical equipment for high quality healthcare services. Key private players in the industry include Siloam Hospitals (which is part of Lippo Group), Omni Group, Mayapada Group and Sinar Mas Group as well as Prodia Group for diagnostic laboratories. Siloam now operates 33 hospitals in 24 cities and 16 clinics in 8 cities throughout Indonesia. Siloam aims to run 50 hospitals by 2019.

In addition, the major private laboratory chains are also expanding their operations in terms of capacity and geographic presence. The 6 major players in the industry are Prodia, Kimia Farma, Pramita, Cito, BioMedika and Parahita. The largest private laboratory chain, Prodia now operates 283 outlets consists of 136 Clinical Laboratories, 5 Specialty Clinics, 130 Point of Care (POC) Services, and 11 Hospital Laboratory. Prodia is set to open 5-7 new outlets by 2018. Since the beginning 208, they have opened 3 new outlets. Prodia's strategic initiative for 2017-2020 is to open 33 new outlets throughout Indonesia.

The presence of BPJS Health has undoubtedly contributed significantly to the growth of the hospital and clinic businesses as the program has indirectly increased the number of patients. Since the roll-out of the National Health Insurance System (JKN) in 2014, the number of health facilities that have collaborated with BPJS Health reached 7,754 Puskesmas (community health clinics for population on sub-district level), 2,014 hospitals, 192 main clinics, 1,160 dentists, 5,409 small clinics, 385 laboratories, 2,300 pharmacies, and 1,003 optics. Considering many hospitals and clinics are being developed to reach more remote area, the in-vitro diagnostics, consumables and supportive healthcare markets are expected to grow accordingly. 

Although the implementation of JKN provides a strong increase in the demand for medical equipment and supplies, several challenges exist. The Indonesian healthcare system suffers from structural issues such as underfinancing, lagging numbers of primary care providers and hospitals, limited access to drugs in rural areas, and overall inaccessibility and inequity of care. 
Medical device registration in Indonesia is regulated by the Ministry of Health’s Directorate General of Pharmaceutical Services & Medical Devices; and Directorate of Medical Device Production and Distribution Development. Although there is no restriction on the importation of medical equipment, the Indonesian government prohibits the import of used equipment. Medical equipment is subject to 5-30% import tax. Electro-medical and other technical equipment have a tariff of 5% while medical supplies and plastics have a higher rate (20-30%). All imported medical equipment is subject to a 10% value added tax.

In 2014, the Ministry of Health implemented an online purchasing system for medical devices that currently lists over 7,500 types of medical devices across 23 categories, along with distribution costs in an e-catalogue. The e-procurement system allows local medical facilities to purchase devices without a tender, and aims to create transparency and simplify transactions. For U.S. companies, the portal is a means to fast-track exports and bypass red tape. However, to be listed in the e-catalogue, companies have to follow to price caps imposed by the government, which can directly impact profit margins. As private hospitals have access to the catalogue, they now have an upper hand in negotiating prices, which once again affecting the bottom line. To manage the new obstacles and capitalize on a growing market, U.S. manufacturers need to explore creative solutions with knowledgeable and savvy local distributors more than ever before.

Total imports of medical equipment are expected to grow 40% to reach $2,030 million in 2018, with U.S imports accounting for 10.75% of imports in the sector. U.S. top three  medical equipment export catergories to Indonesia  are:  HS 901890 - Instr & Appl F Medical Surgical Dental Vet,; HS 382200 - Composite Diagnostic/lab Reagents, Exc Pharmaceut; and HS 901819 - Electro-diagnostic Apparatus and Parts Etc. Medical device suppliers are dominated by companies from Europe, Asia, and U.S. Germany is the leading supplier and is particularly strong in the patient aids, other medical devices, and diagnostic imaging equipment, where they accounted for around 20% of imports. Other countries competing for market share in the medical equipment and supplies sector include China, Japan, Singapore, and South Korea. Companies from China and South Korea provide the greatest challenge to U.S. firms as they offer lower- priced equipment and a sustained presence in the region.
Leading Sub-Sectors
Diagnostic imaging equipment (35%) such as Echocardiographs, MRI, CT Scanners, and X-Ray and other types of medical devices (31%) such as wheelchairs, ophthalmic instruments, medical surgical sterilizers, Ultra Violet or Infra-Red ray apparatus, have the largest market shares and potential for U.S. companies interested in entering this market.


Indonesia relies heavily on imported medical equipment and supplies to meet local demand. Most U.S. companies will find it most beneficial to choose a local distributor to assist with import registration, product licensing and the logistics of importing their devices into the local market. In Indonesia, medical buyers prefer high-quality products from U.S., Europe, and Japan. Pricing and payment terms are key factors in successfully doing business in the Indonesian medical device market, given that local buyers look for beneficial price deals. To gain market share, U.S. companies need to aggressively pursue the Indonesian market, competing on price, quality and after-sales service. Financing options to distributors and end purchasers will also assist in accessing the market and increasing market share.
International companies such as Philipps, GE Healthcare, Becton Dickinson, Boston Scientific, 3M, Merck, Sharp & Dohme, and Pfizer are already active in Indonesian's healthcare sector.

Web Resources

Ministry of Health, website:
Statistics Indonesia, website:
U.S. Department of Commerce TradeStats Express, website:
For questions or more information, please contact Pepsi Maryarini at
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting

More Information

Indonesia Healthcare Trade Development and Promotion