Indonesia’s healthcare sector has increased in terms of size and accessibility in recent years, however, the industry’s quality and capacity remain fragile. With a significant shortage of hospital beds (12 beds per 10,000 people), medical staff, and intensive care facilities, the healthcare system is under massive stress. Furthermore, Covid-19 has aggravated the situation by causing a rapid increase in demand for medical services, for which there are no provisions.
There is an eminent urgency to improve Indonesia’s healthcare system, thus creating a great scenario for investment in the medical industry. This article provides a complete guide on opportunities in the healthcare sector and understanding procedures for medical device registration Indonesia.
The government has addressed some administrative reforms to increase the rate of hospital bed per person, by liberating healthcare-related sectors for 100% foreign investment through the new Positive Investment List:
|Business Line||Previous Regulation||Positive Investment List|
|Hospital||67% foreign ownership (70% for ASEAN investors)||Open for 100% foreign ownership for the hospital with a minimum number of 200 beds|
|Medical Device Distributor||Maximum 49% foreign ownership||Open for 100% foreign ownership|
|Medical Device Testing||Maximum 67% foreign ownership||Open for 100% foreign ownership|
Indonesia’s medical device industry was worth US$4.5 billion in 2019 with the majority (US$2.8 billion) coming from imported medical devices like diagnostic tools and medical lasers. On the contrary, the export of the same plunged to US$267 million.
Following are some of the factors expected to further stimulate the demand for importing medical devices in Indonesia:
Furthermore, Indonesia is a signatory to the ASEAN Medical Device Directive (AMDD), aimed at harmonizing rules across the region.
Due to the Covid-19 pandemic, Indonesia has set aside IDR 695.2 trillion towards funding its national economic recovery program. As a result, the number of imports of medical devices is set to rise.
Moreover, in order to prevent the Covid-19 outbreak, the government has lifted numerous import restrictions on medical devices and is committed to simplifying the process of importing medical devices for foreign manufacturers.
The culmination of all these factors presents a profitable window for foreign investors to set their footprint in the growing medical device industry. However, one needs to be aware of prerequisites and procedures for medical device registration in Indonesia.
In Indonesia, medical devices are classified based on the risk level. The basis for the classification system is the ASEAN Medical Device Directive. Refer to the table below for classification:
|I||A||Low||Cholesterol, uric acid test system; Surgical Instrument; Bandage, Surgical camera; Electric operating table, Patient scale||General Control|
|Pregnancy self-testing, Electric Hospital Bed, Surgical Lamp, Surgical Mask
Blood glucose self-testing, ECG, Xray Unit, Syringe, Condom, Contact lens
|III||D||High||HIV Blood donor screening, Stent, Intraocular lens (IOL), Defibrillator, Pacemaker||Pre Market Approval|
In order to import medical devices, a company has to obtain the distribution license called Izin Penyalur Alat Kesehatan (IPAK) issued by the MOH RI (Ministry of the Health Republic of Indonesia). One can file to MOH RI via an e-registration online system which makes the process simple and efficient.
Following are the required documents one needs to keep handy in order to get a medical device registered by MOH RI:
|HIV Products||Should be tested at the Indonesia Reference National Laboratory Hospital (RSCM)|
|Menstrual Pads and Adult Diapers, Condom, syringe||Should have fluorescence tested at the Indonesia National Laboratory (Sucofindo, The Food and Drug Monitoring Agency/BPOM)|
|For the product contains animal origin as its raw material (ex: catgut)||Should have a certificate of free from disease and the product country of origin|
|For the product radiation (ex: X-ray unit)||Should have safety radiation certificate from National Nuclear Agency|
|Open Software||Software Validation report From Manufacture or independent laboratories|
The time required to get a medical device registration has been listed below in accordance with the classification of the devices:
In the future, Indonesia’s Government Regulation No. 31/2019 will require various types of items to be halal certified, as well as the labeling of products made from haram (non-halal) materials. Halal certification will be voluntary starting in 2021, although it will not be required for medical equipment until the following dates:
In Indonesia, only a medical device distributor company is authorized to register and distribute medical devices, hence posing a great challenge for a foreign investor to enter into the industry. However, Cekindo, with its comprehensive business solutions, helps you with the registration of your company and assists you in obtaining mandatory business and import licenses with minimum obstacles.
Moving forward with the set-up of your company, Cekindo handles your hefty paperwork requirements for product registration and rules out delays. Our consultants can get your medical products Halal certified in a seamless way. Moreover, if a foreign investor wishes to import medical devices without establishing a company, Cekindo makes it possible by engaging with a local partner/distributor.
To know more about how Cekindo’s solutions can help you make investments in Indonesia, please fill out the form below or talk to an expert on our chatbot.