Singapore, Nov 13, 2006: Indonesia remains one of the poorest countries in South East Asia, lagging behind in many areas of healthcare provision and the major recession experienced in 1998 as a part of the Asian crisis still affects economic prospects.

According to a recent report by Research and Markets report the government funding is low and the country relies heavily on international aid. An unstable political environment, tarnished by corruption has made healthcare reform almost impossible in Indonesia. However, Jakarta, the capital city enjoys relatively good levels of primary care as well as a range of modern private specialist facilities, while healthcare coverage in remote regions tends to be insufficient.

Indonesia only produces a small number of low-tech medical items, such as surgical gloves, bandages, orthopaedic aids and hospital furniture and most medical goods have to be imported. Indonesia is a base for export trade, with the increased presence of multinational manufacturers.

The appointment of a local agent in Indonesia is highly desirable, although direct selling is possible in the private sector. End-users will expect to deal with a local firm, usually a sole agent. A local agent is essential for selling to the Indonesian government, whether it be the Ministry of Health, the armed forces or another state organization.

Agents in Indonesia tend not to specialize, preferring to stock a wide range of products. For this reason, close personal contact and supervision is essential.

Although Indonesia is a large country, much of the market will be easily accessible from Jakarta, since this is where most opportunities will exist.

Prior to 1997, only Indonesian-owned companies were allowed to undertake import/export activities, wholesaling or retailing. Overseas companies are now allowed to engage in wholesaling activities, provided they first obtain a licence.

In 1998, this relaxation was extended to the retailing of goods by foreign companies. It should be noted, however, that foreign companies are not allowed to both distribute and retail their products. Restrictions on the import and export of products still apply.