indonesia healthcare market opportunities - webinar by global growth markets
TRANSCRIPT
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Webinar presentation
Indonesia healthcare market opportunitiesWatch the webcast: www.brighttalk.com/webcast/13585/184273
20-Jan-16Pete Read, CEO
UK +44 773 986 5080Singapore +65 6632 3630
© Josh Estey and AusAID
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2Agenda
Webinar: Indonesia healthcare market opportunities20-Jan-16
1. The big picture2. Technology developments3. Market opportunities
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3
Webinar: Indonesia healthcare market opportunities20-Jan-16
The big picture
© Josh Estey and AusAID
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4Relatively low healthcare spendingThe big picture
Webinar: Indonesia healthcare market opportunities20-Jan-16
Total health expenditure, 2013
Vietnam Singapore Thailand Philippines Malaysia Indonesia
6.0%4.6% 4.6% 4.4% 4.0%
3.1%
Source: WHO
% of GDP
IndonesiaUSD107
ChinaUSD367
BrazilUSD1,085
United StatesUSD9,146
Per capita
Source: World Bank
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5Potential for higher health spendingThe big picture
Webinar: Indonesia healthcare market opportunities20-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)
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6World’s largest health insurance programThe big picture
Webinar: Indonesia healthcare market opportunities20-Jan-16
919
533
109 104 45
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
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7Growth of private hospitalsThe big picture
Webinar: Indonesia healthcare market opportunities20-Jan-16
2011 2012 2013
315
543666
No. of hospitals
The number of private hospitals is increasing by ~50% annually
Indonesia: Private hospitalsMiddle class boom is biggest in the world apart from China and IndiaHigh spending power and willingness to pay a premium for qualityThe middle-class offers a huge untapped market for private healthcareJKN driving rising demand for public hospitals is shifting affluent Indonesians towards private sector
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8Private hospital groups now investingThe big picture
Source: www.ggmkts.com/insights
Webinar: Indonesia healthcare market opportunities20-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
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9Pharma industry expanding at 10%The big picture
Webinar: Indonesia healthcare market opportunities20-Jan-16
Domestic companies
70%
Foreign companies
30%
USD6.2 bn
Indonesia: Pharma companies55% 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
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Webinar: Indonesia healthcare market opportunities20-Jan-16
Technology developments
© Josh Estey and AusAID
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11USD1 bn Med Tech market by 2018Technology developments
Webinar: Indonesia healthcare market opportunities20-Jan-16
Indonesia: Medical device market structure
Diagnostic imaging
35%
Consumables24%
Auxiliary equipment
6%
Dental products2%
Orthopaedic implants
2%
Others31%
% of volume
Source: GGM; Industrial Technology Research Institute
2015USD
860 mn
Heavy reliance on imports13% annual market growth Faster growth for imaging and orthopaedics
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12The dawn of mHealthTechnology developments
Webinar: Indonesia healthcare market opportunities20-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
“
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13Major players investing in health techTechnology developments
Webinar: Indonesia healthcare market opportunities20-Jan-16
Source: www.ggmkts.com/insights
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14Remote health faces some hurdlesTechnology developments
Webinar: Indonesia healthcare market opportunities20-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
“
”
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15
Webinar: Indonesia healthcare market opportunities20-Jan-16
Market opportunities
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16Insurers, providers and pharma neededMarket opportunities
Webinar: Indonesia healthcare market opportunities20-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
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17Big potential for apps and remote healthMarket opportunities
Webinar: Indonesia healthcare market opportunities20-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
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