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Indonesia healthcare market opportunities - webinar by Global Growth Markets

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Global Growth Markets CEO Pete Read on Indonesia’s healthcare market fundamentals, the challenges faced, improvements in progress, how technology can help and opportunities for investment. Indonesia’s healthcare market is currently facing numerous challenges, from lack of personnel to the remoteness of many of its communities, to low expenditure. However, there are encouraging signs that improvements are taking place, with much more to come.

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Indonesia healthcare market opportunities - webinar by Global Growth Markets

  1. 1. www.ggmkts.com info@ggmkts.com Webinar presentation Indonesia healthcare market opportunities Watch the webcast: www.brighttalk.com/webcast/13585/184273 20-Jan-16 Pete Read, CEO UK +44 773 986 5080 Singapore +65 6632 3630 © Josh Estey and AusAID
  2. 2. www.ggmkts.com 1 Agenda Webinar: Indonesia healthcare market opportunities 20-Jan-16 1. The big picture 2. Technology developments 3. Market opportunities
  3. 3. www.ggmkts.com 2 Webinar: Indonesia healthcare market opportunities 20-Jan-16 The big picture © Josh Estey and AusAID
  4. 4. www.ggmkts.com 3 Relatively low healthcare spending The big picture Webinar: Indonesia healthcare market opportunities 20-Jan-16 Total health expenditure, 2013 6.0% 4.6% 4.6% 4.4% 4.0% 3.1% Vietnam Singapore Thailand Philippines Malaysia Indonesia Source: WHO % of GDP Indonesia USD107 China USD367 Brazil USD1,085 United States USD9,146 Per capita Source: World Bank
  5. 5. www.ggmkts.com 4 Potential for higher health spending The big picture Webinar: Indonesia healthcare market opportunities 20-Jan-16 ✔ Population 253 million, the 4th largest country in the world, behind China, India and the US ✔ GDP 2014 GDP of USD889 bn, 5% up on 2013, projected to increase 5.5% in 2015 (IMF) ✔ Middle class 8-9 mn people enter the middle class each year, pushing the middle class population from 85 mn now to 141 mn by 2020 ✔ Cities 25 cities/regencies with >500k middle class, expected to jump to 54 cities by 2020 ✔ Universal healthcare Universal healthcare insurance program introduced in 2014, driving spending up 200% to USD15 bn by 2020 (GP Farmasi)
  6. 6. www.ggmkts.com 5 World’s largest health insurance program The big picture Webinar: Indonesia healthcare market opportunities 20-Jan-16 919 533 109 104 45 Private hospitals Public hospitals Special and psychiatric hospitals Indonesian military hospitals National police hospitals 1,710 hospitals have signed up for JKN, which represents >70% of all hospitals No. of hospitals Hospitals participating in JKN, 2015 Source: Ministry of Health 2014 120 million people covered 2015 Public company workers, and up to 50% of private sector workers covered 2016 All members of Jamkesda (regional insurance scheme for poor) covered 2018 100% of large private company workers and 80% in small companies 2019 Universal coverage for 250 mn
  7. 7. www.ggmkts.com 6 Growth of private hospitals The big picture Webinar: Indonesia healthcare market opportunities 20-Jan-16 315 543 666 2011 2012 2013 No. of hospitals The number of private hospitals is increasing by ~50% annually Indonesia: Private hospitals Middle class boom is biggest in the world apart from China and India High spending power and willingness to pay a premium for quality The middle-class offers a huge untapped market for private healthcare JKN driving rising demand for public hospitals is shifting affluent Indonesians towards private sector
  8. 8. www.ggmkts.com 7 Private hospital groups now investing The big picture Source: www.ggmkts.com/insights Webinar: Indonesia healthcare market opportunities 20-Jan-16 Announcements of expansion plans by local and foreign players Siloam hospital • Siloam Hospital Group (ID) • Kalbe Farma (ID) • Columbia Asia (US) • Apollo Hospitals (IN) • IHH Healthcare (MY) BIMC Hospital, Bali Rumah Sakit, Columbia Asia
  9. 9. www.ggmkts.com 8 Pharma industry expanding at 10% The big picture Webinar: Indonesia healthcare market opportunities 20-Jan-16 Domestic companies 70% Foreign companies 30% USD6.2 bn Indonesia: Pharma companies 55% Ethical drugs market share 206 Pharma companies in Indonesia USD6.2 bn Pharma market in 2015 >10% growth forecast, mainly due to JKN JVs are common, due to protection for local companies
  10. 10. www.ggmkts.com 9 Webinar: Indonesia healthcare market opportunities 20-Jan-16 Technology developments © Josh Estey and AusAID
  11. 11. www.ggmkts.com 10 USD1 bn Med Tech market by 2018 Technology developments Webinar: Indonesia healthcare market opportunities 20-Jan-16 Indonesia: Medical device market structure Diagnostic imaging 35% Consumables 24% Auxiliary equipment 6% Dental products 2% Orthopaedic implants 2% Others 31% % of volume Source: GGM; Industrial Technology Research Institute 2015 USD 860 mn Heavy reliance on imports 13% annual market growth Faster growth for imaging and orthopaedics
  12. 12. www.ggmkts.com 11 The dawn of mHealth Technology developments Webinar: Indonesia healthcare market opportunities 20-Jan-16 Some Indonesians are reluctant to see a doctor as they are scared, and this may be due to a lack of medical knowledge. Moreover, some Indonesians lead unhealthy lifestyles and this definitely affects their health. I hope that through apps, Indonesians can obtain medical and health knowledge and take care of their health. Dr Jacques Durand, Founder of Dokter Gratis “ ”
  13. 13. www.ggmkts.com 12 Major players investing in health tech Technology developments Webinar: Indonesia healthcare market opportunities 20-Jan-16 Source: www.ggmkts.com/insights
  14. 14. www.ggmkts.com 13 Remote health faces some hurdles Technology developments Webinar: Indonesia healthcare market opportunities 20-Jan-16 Some rural areas have limited access to healthcare services… There is not yet a formality to bring the different players together…. It is difficult for foreign mHealth companies… Indonesia needs to improve its infrastructure and connectivity in hospitals and satellite clinics… The Ministry of Health can also work with the telco companies… Francis Puno, Chairman, Southeast Asia Working Group, Continua Health Alliance “ ”
  15. 15. www.ggmkts.com 14 Webinar: Indonesia healthcare market opportunities 20-Jan-16 Market opportunities © Josh Estey and AusAID
  16. 16. www.ggmkts.com 15 Insurers, providers and pharma needed Market opportunities Webinar: Indonesia healthcare market opportunities 20-Jan-16 Finance Private insurance required to fill gaps and top up the JKN coverage Services Private hospital demand booming as public sector comes under strain from increased demand; training of physicians is also needed Pharma Ethical drugs market expected to increase at double digit rates thanks to uplift in prescriptions
  17. 17. www.ggmkts.com 16 Big potential for apps and remote health Market opportunities Webinar: Indonesia healthcare market opportunities 20-Jan-16 Tech Health apps and online information and consultation services are attracting millions of users mHealth The need for connected health is clear, and commercial services are possible if the infrastructure is well thought out and trialled Tele-health Massive dispersed rural population needs to be connected to health services
  18. 18. www.ggmkts.com info@ggmkts.com Talk to us about how we can help you succeed in your chosen growth markets Pete Read CEO United Kingdom peteread@ggmkts.com +44 773 986 5080 Morris Lee Director Singapore morrislee@ggmkts.com +65 6632 3630

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