Indonesia’s national development agenda places a high focus on healthcare as health care facilities are being rigorously built and upgraded by the national and regional governments. In addition, the agenda calls for community health clinics (Puskesmas) to be equipped with inpatient units and to increase the quality of services in all 34 provinces of the country.
Meanwhile, consumer spending in other sectors has begun to decline as Indonesia’s hospitals and clinics continue to expand with the government’s assistance. Thus, it falls on the private sector to provide high-quality healthcare services, creating lucrative investment opportunities in the medical devices sector. In this article, we’ll discuss how manufacturers from the US can import medical devices through a medical device distributors in Indonesia without having to establish a company.
In 2019, Indonesia’s medical device industry was valued at USD 4.5 billion, however, the majority of its share (USD 2.8 billion) came from imports. With such intense reliance on imported medical equipment and supplies to meet the demand of the fourth most populous country in the world, Indonesia presents a great potential for US exporters of medical devices.
Following China (20% import), and Germany (15% import), the US products accounted for approximately 11% of Indonesia’s imports in 2019. U.S. companies must compete on quality, safety, efficacy, and after-sales service for more creative goods to obtain a bigger market share. There’s a huge market potential for US medical device suppliers to swoop in and make bank along with helping the country improve its healthcare system.
However, investing in Indonesia’s medical device industry isn’t without challenges. Engaging with medical device distributors in Indonesia to assist with product registration, import permissions, and the logistics of importing and selling their products in the local market is often crucial for the exporters of medical devices.
The Ministry of Health (‘MoH’) is responsible for medical device registration and marketing authorizations in Indonesia. However, only firms with a legal presence in the nation can register their items with the government.
Businesses from the United States need a considerable amount of capital to start up in Indonesia since the country has increased the paid-up capital for foreign-owned companies (PT PMA) to IDR 10 billion. Medical Device Distributor License (Izin Penyalur Alat Kesehatan, IPAK) is also required to distribute medical devices in Indonesia.
As an alternative to setting up a corporation, one can import medical devices into Indonesia by using the services of a reliable local agent and/or distributor. In addition to registering items, local agents and/or distributors can play a key role in growing the market and offering after-sales services to consumers.
Indonesia has a dynamic and experienced international business sector that can help American firms find the right agent or distributor.
Exporters or medical device distributors in Indonesia must file an application for registration with MoH’s Directorate-General for Pharmacy and Medical Device Services, which must contain certain documents with proper product information.
MoH has streamlined the product registration procedure, which now takes just 1-2 months from submission to approval. The expedited schedule also applies to registration modifications and renewals. This rapid relaxation of rules by the Indonesian government indicates its intention of drawing investment into the sector.
As an alternative to setting up a company in Indonesia, Cekindo acts as your medical device distributor in Indonesia. All tasks of product registration, import license, and a smooth distribution experience lies under the expertise of Cekindo.
Moreover, as your local agent, we will register and maintain your devices under our company’s ownership. Also, sales agreements allow for collaboration with numerous distributors.
Your items will be registered by Cekindo and we will keep your registration safe so that you can convert them to any other business at any moment.
EOS Company Limited, a manufacturer of soft contact lenses, approached Cekindo for market entry. Cekindo as their principal consultant helped them with timely company incorporation, product registration and obtained their licenses with the concerned authorities.
As a result, EOS Lens is now able to import and distribute its products in Indonesia through more than one distributor, allowing them to achieve higher market efficiency.