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Increased Demand for Healthcare Services in Indonesia

As the Indonesian government begins to boost health tech services and the market becomes more established, the entry of international health tech firms into the market is expected to drive demand even higher.

Product development is becoming more important for health tech service providers as market awareness develops. Digital health is helping Indonesia’s healthcare system in overcoming challenges.  E-pharmacies and online consultations are two examples of digital health technologies that help Indonesians in rural and remote areas get excellent health care service

Furthermore, the demand for general practitioners, specialised doctors, and other healthcare practitioners has increased tremendously on these platforms over time. Supporting this trend, domestic platforms are partnering with an increasing number of doctors to provide end-users with access to doctors via platforms.

As the spending budget of hospitals and clinics increases, it is expected that more healthcare IT solutions providers will enter the market, driving the demand. This will also ensure an increase in revenues in the industry.

Digital health is growing quickly in Indonesia, as it is globally. In the last 4-5 years, a range of digital health companies and digital health solutions have emerged in Indonesia. The large and geographically distributed population of Indonesia provides a strong user base for the country’s developing digital health applications. Indonesia’s technologically engaged youth population provides a large customer base for digital businesses.

The pharmaceutical sector will also be experiencing a spike in growth as demand for treatments to treat lifestyle and chronic disease increases. As demand shifts from generic drugs and toward specialised items like dietary supplements and other aspects of biopharmaceuticals, companies will need to identify new drug delivery areas.

Demand for medical devices will be driven by the expansion of private and government hospitals and clinics as well as improvements in existing facilities. Another factor behind this expected demand is the rise of non-communicable diseases and the diagnosing of which require advanced and high-tech equipment.

Portable CTG will be the new and forthcoming technology in Indonesia that will be offered by major health tech platforms in the coming years. The CTG device is made up of specially built hardware and software that is cost-effective, portable, and capable of capturing real-time data for monitoring foetal well-being. Portable CTG that can be used by midwives and doctors in both rural as well as urban areas to provide a high quality of maternal health services.

According to a report by OpenGov Asia, throughout this pandemic, the healthcare sector has been in urgent need of healthcare management systems to manage hospitals, clinics and other medical facilities; the demand for healthcare tech has been soaring. Artificial intelligence is progressively being seen as an excellent technology to leverage for healthcare, even as it becomes more prevalent in modern business and everyday life.

Artificial intelligence in healthcare has the potential to assist healthcare providers in a range of patient care areas and administrative processes. Nonetheless, utilising artificial intelligence in healthcare for diagnostic and treatment plans – rule-based or algorithmic – can be difficult to integrate with clinical processes and EHR systems. When compared to the accuracy of recommendations, integration issues have been a higher barrier to mainstream use of AI in healthcare.

A report titled “Indonesia Health Tech Market Outlook to 2025-Lack of Medical Staff and Protective Gear to Lean on Healthcare Start-ups in Indonesia” suggested that the health tech market is expected to grow in double-digits. The health tech market in Indonesia is being driven by technological improvements and the availability of various services on these platforms.

Due to the entry of new foreign competitors and an increase in product awareness among the country’s growing population, Indonesia’s health tech sales revenue is predicted to grow over the next few years.

In the long-term, the healthcare sector will see tremendous growth as the Indonesian middle class expands and demand for products to cure common and even rare diseases rises. In this sense, foreign investors should stay updated on Indonesia’s digital healthcare sector, as the use of healthcare apps is revolutionising the local market.


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