Home Blog Regulations and Procedures for Establishing a Hospital Business in Indonesia Business Setup | Indonesia | Product Registration Regulations and Procedures for Establishing a Hospital Business in Indonesia InCorp Editorial Team 13 January 2025 5 minutes reading time Table of Contents Why Invest in Indonesia's Hospital Sector? Market Overview of Indonesia's Hospital Sector Investment Opportunities in the Hospital Sector Ongoing and Upcoming Hospital Projects in Indonesia Steps to Enter the Hospital Sector in Indonesia Start Investing in Indonesia's Hospital Sector with InCorp As the backbone of the healthcare system, hospitals in Indonesia are at the center of efforts to improve public health. Recent government reforms and growing investments are helping to modernize the sector, making it more accessible and efficient. Whether you’re a healthcare professional or an investor, understanding the hospital sector in Indonesia opens doors to unique opportunities. This article will explore its potential, challenges, and steps for involvement. Why Invest in Indonesia’s Hospital Sector? Thanks to the Omnibus Law, foreign investors can now own 100 percent of hospitals in Indonesia. This is a significant change from the previous limits, where non-ASEAN investors could only hold 67 percent and ASEAN investors 75 percent. This new policy makes the hospital sector more accessible to global players. The law has also simplified starting a hospital with a risk-based system. Since hospitals are considered high-risk businesses, they require a license and a registration number (NIB). These approvals are granted after meeting certain conditions set by the government, making the process more transparent and efficient. Specialized clinics are now fully open to foreign investors as well. However, basic clinics (pratama clinics) are reserved for local businesses, creating distinct opportunities for those focusing on advanced healthcare services. Market Overview of Indonesia’s Hospital Sector The hospital market in Indonesia is set to generate $20.95 billion and approximately $74.87 per person by 2024, showing significant growth from previous years. This momentum is expected to continue, with an annual growth rate of 6.81% (CAGR 2024-2029), reaching a market volume of $29.12 billion by 2029. This reflects the average revenue tied to the population, highlighting increased healthcare spending nationwide. Comparison with Global Markets The United States leads the hospital sector globally, with a projected revenue of $1,501 billion in 2024. While Indonesia’s figures are smaller, its growth rate and expanding healthcare access make it a market with immense potential for investors. Segmentation of Hospital Services Indonesia’s hospital market is divided into three key categories: Inpatient Care: Medical and surgical treatments requiring an overnight stay. Outpatient Care: Treatments that do not require overnight admission. Other Hospital Services: Specialized offerings include day-care, long-term care, and home-based care. Additionally, there is a growing emphasis on specialized healthcare and expanding services to remote areas. This focus on innovation and accessibility positions Indonesia as a rising leader in the healthcare industry. READ MORE:CDAKB Certification Process: Essential Steps for Medical Device DistributorsA Simple Guide to Medical Device Registration in IndonesiaInvesting in Medical Device Manufacturing: A Guide for Turkish Investors Investment Opportunities in the Hospital Sector GR 47/2021 upholds the existing classification system, dividing hospitals into two main categories: General Hospitals: Offer services for various medical conditions and diseases. Specialist Hospitals: Focus on specific medical specialties or diseases. Foreign-owned general hospitals must meet the standards of Class A or Class B, which involve providing at least 200 beds. Specialist hospitals owned by foreign investors must have at least 100 beds. Certain specialist facilities, such as dental and ENT hospitals, are exempt from these rules. Room Allocation Standards in Indonesia Private and public hospitals in Indonesia must follow the bed allocation standards outlined in the table below. This structured approach ensures that hospitals have enough resources for critical care, isolation during public health emergencies, and adequate coverage for National Health Insurance (BPJS) program members. Ongoing and Upcoming Hospital Projects in Indonesia Indonesia is seeing exciting growth in its healthcare infrastructure, with new hospitals being built nationwide. Below are some notable developments that showcase Indonesia’s commitment to expanding and modernizing its hospital infrastructure. Bali International Hospital This hospital, initially developed with support from the Indonesian Healthcare Corporation (IHC) and Mayo Clinic, will soon open. Featuring cutting-edge medical technology, it aims to position Bali as a leading destination for medical tourism. Nusantara’s New Hospital Medikaloka Hermina is developing a 100-bed facility focused on maternal and child health in Indonesia’s upcoming capital city. Sepaku UPT Hospital in East Kalimantan This hospital, which will be completed soon, will feature 550 rooms and is designed to attract healthcare professionals from across the region. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Newsletter Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Steps to Enter the Hospital Sector in Indonesia The introduction of GR 47/2021 has placed several key responsibilities on hospitals in Indonesia to ensure better quality and accountability in healthcare services. Hospitals must now: Provide clear and accurate information about their services. Deliver safe, high-quality, and non-discriminatory healthcare. Maintain comprehensive medical records. Offer emergency care based on their capabilities. Provide care for underprivileged and low-income patients. Extend healthcare services during disasters, aligned with their capacity. Implement an effective referral system for specialized care. Inform patients of their rights and responsibilities transparently. Develop and manage a system for accident and disaster response. Follow hospital ethics and maintain professional standards. Protect and support legal rights for hospital staff. Comply with government health regulations. Establish and enforce internal hospital policies. Maintain a smoke-free environment within hospital premises. Additional Supporting Services Both general and specialist hospitals must provide various supporting services to enhance patient care. These services are delivered by medical and non-medical staff: Medical ServicesNon-Medical ServicesLaboratory servicesHospital managementMedical recordsInformation and communicationBlood servicesMaintenance of medical equipmentNutrition servicesLaundry and cleaningCentralized sterilizationCorpse handling Start Investing in Indonesia’s Hospital Sector with InCorp Managing these services while complying with government regulations can be complex. Hospitals must focus on their core healthcare delivery while ensuring the efficient management of these additional services. InCorp can effectively assist hospitals in meeting these demands. We provide support for regulatory compliance and streamline operations, while also offering additional assistance with: Product Registration: Ensuring all medical equipment and supplies meet Indonesia’s regulatory requirements. Company Registration: Simplifying establishing your hospital or healthcare business in Indonesia. Complete the form below and focus on providing quality care while leaving administrative and regulatory challenges to the professionals. Read Full Bio Verified by Ales Cina Consulting Manager at InCorp Indonesia Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights. Frequently Asked Questions How much is the minimum fund required to establish a PT PMA business in Indonesia? The investment requirement for PMA companies in Indonesia varies based on their classification under the Indonesia Industrial Standard Classification (KBLI). Generally, a minimum investment of IDR 10,000,000,000 (ten billion Indonesian Rupiah), excluding investment in land and buildings, is needed to conduct one business activity in one location. Do all the products sold in Indonesia need to be halal registered? According to the latest provision regarding Halal Product Assurance, halal certification for many consumer products in Indonesia that was previously voluntary has now been mandatory. Food and beverage products are the first Halal certified before 17 October 2024. Can you provide pricing examples for the product registration services?v To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please get in touch with our consultants. Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Setup Non-Profit Organization Outlook in Indonesia: An Insight for Foreign Entities Read more Doing Business in Indonesia: The Challenges Read more Why Choose Bandung to Start a Business in Indonesia? Read more