Special Report: Focus on Healthcare in Indonesia

Healthcare in Indonesia is a complex topic because Indonesia is a complex topic. Indonesia is the 4th most populous nation in the world and the largest Muslim country. It’s geography presents a unique challenge to effective healthcare deliver because Indonesia is an archipelago comprising 13,466 islands. Further compounding the issues, Indonesia’s history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, a democratization process, and periods of rapid economic change.

Indonesia consists of hundreds of distinct native ethnic and linguistic groups. The largest – and politically dominant – ethnic group are the Javanese. A shared identity has developed, defined by a national language, ethnic diversity, religious pluralism within a majority Muslim population, and a history of colonialism and rebellion against it. Indonesia’s national motto, “Bhinneka Tunggal Ika” (“Unity in Diversity” literally, “many, yet one”), articulates the diversity that shapes the country. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support the world’s second highest level of biodiversity. The country has abundant natural resources, yet poverty remains widespread.

In 2013, Indonesia’s population stood at 251 million, up from 238 million in 2008. The major factors that contributed to the growth in the population are an increase in net migration and a drop in the death rate. The country’s pharmaceutical market was estimated to have been worth $5 billion in 2013 and is expected to reach $9.9 billion by 2020 at a projected Compound Annual Growth Rate (CAGR) of 10.2%. In 2010, according to US Commercial Service estimates, the country’s medical device market was worth $573m.

The positive trends in the Indonesian healthcare market can primarily be attributed to –

Increasing coverage of healthcare insurance
Improved access to healthcare facilities

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