Updated on 31 March 2015
F&S mentioned that establishing new partnerships and acquiring local drug makers and distributors will provide quick access to the thriving Indonesian healthcare space
Singapore: According to recent analysis by Frost & Sullivan (F&S), Indonesia is fast emerging as one of the most favorite destination for healthcare investments. F&S elaborated in its report that companies in the healthcare sector, including hospitals, medical devices, pharmaceuticals and diagnostics are looking at the country as a major investment destination.
The study noted that Greater Jakarta is the most promising market for investments due to strong infrastructure support, accessibility, and the presence of major hospitals. Kalimantan and Papua (outer Jakarta) too offer attractive potential.
The adoption of Jaminan Kesehatan Nasional (JKN) insurance scheme has spiked the need for hospital beds, medical devices, affordable medicines and diagnostic services in the country. Mr Siddharth Dutta, manager, Frost & Sullivan Healthcare Industry, said, "Through JKN, government-run hospitals are looking to improve access to and affordability of healthcare in rural areas, thus spurring the demand for drugs."
The report, however, emphasized that domestic companies especially in the pharmaceutical sector, have a long way to go in terms of quality, efficiency and innovation. F&S mentioned that establishing new partnerships and acquiring local drug makers and distributors will provide quick access to the thriving Indonesian healthcare space.