Healthcare

• 
  Head of Working Group
  Andri Kusandri
  Market Access and Government Affairs Director - Merck
• 
  Deputy of Working Group
  Widodo Triwibowo
  Country Head of Legal of Novartis
• 
  Deputy of Working Group
  Efraim Ariesandy
  Head of Market Access of Fresenius Medical Care

About the Group

Indonesia is a key market for Healthcare in Southeast Asia. The Pharmaceutical market has been improving since the last quarter of 2016 due to the implementation of JKN (Jaminan Kesehatan Nasional). Total market value in 2016 reached IDR 65.3 trillion, constituting 27% of the total ASEAN market. Within four years of its implementation, JKN has successfully managed to cover 70% of Indonesia’s population. Government spending also continues to increase. In 2017 Indonesia allocated nearly US$ 7 billion for Healthcare sector spending, with 5% of its total budget and a staggering 43% y-p-y increase. 

So far no major shifts have occurred in the sector, with multinational companies remaining focused on research-based products for the Indonesian market. The market is still dominated by local companies, with a 72% market share held by State-Owned Enterprises (SoEs) and domestic companies and the remaining 28% held by multinationals. Currently there are 216 players listed in the national Pharmaceutical landscape, consisting of 4 (four) State Owned Enterprises, 178 local private companies, and 24 multinational companies. Meanwhile, the medical devices landscape consists of 1,308 companies, most of which are local companies and traders. Only 41 companies are registered as medical device manufacturers with the BKPM, consisting of 6 multinationals and 35 local players. 

The Pharmaceutical and Medical Technology Working Group represents the multinational pharmaceutical and medical devices companies that have a presence in Indonesia. Currently the group consists of 31 companies, with 20 pharmaceutical and medical devices sector relevant companies, and another 11 companies from related business or interests.

Throughout the year, the group successfully managed to hold regular meetings on bi-monthly basis. It actively advocates on and closely monitors issues related to Universal Healthcare Coverage (Jaminan Kesehatan Nasional – JKN) developing regulations for the third year, draft implementation regulations of Halal Law, issuance of the Negative Investment List revision, import provisions related to Healthcare products and the newly passed Patent Law that has a significant impact for Pharmaceutical sector.

In 2017 the group has elected a new Working Group leadership. Priority issues include implementing regulations of Halal Law, close monitoring of the JKN implementation, and follow-up acceleration of the pharmaceutical and medical devices development program, which includes the local content implementation for pharmaceuticals. Activities considered priority are outreach to the DG Chemical Downstream, Ministry of Industry, and more diverse advocacy activities in the form of input submissions, consultative meetings, focus group discussions, and organisation of events.