SEA Health Tech Investment Insights

Indonesia's healthcare adopts a hybrid model of public and private providers and universal health coverage Overview Public Healthcare System Decentralized, in deficit, underequipped In 1999, a reform decentralized health services to provincial and district governments which are under the Ministry of Home Affairs. Between 2014 and 2019, Indonesia deployed its universal health coverage called Jaminan Kesehatan Nasional (JKN), thanks to which citizens are entitled to free healthcare or healthcare at very low cost, allowing many patients to find treatment Healthcare system suffers from structural problems, such as underfinancing, lagging numbers of hospital facilities and inequity of care especially in remote areas Authorities • Ministry of Health supervises government hospitals, provisional/ district health offices Decentralized approach: district governments take major role in managing health support and funding Financing JKN funded by certain percentage of salary contribution of employers and employees. The current program had a deficit of IRD 32 trillion in 2019 Private Healthcare Options Underequipped, lacking financial support Private providers include networks of hospitals and clinics that are managed by not-for-profit, charitable, or for-profit providers, as well as individual doctors and midwives who have dual practices. INSEAD The private sector represents 60% of healthcare overlays. 1,787 or the 2,813 hospitals are privately managed Widely available in first-tier cities; private hospital group see second-tier cities as promising opportunities for expansion Indonesia healthcare sector is at an early stage of its life cycle, with a significant imbalance of supply and demand. In 2018, the World Bank wrote that "Indonesians could be healthier with stronger public-private partnerships" Healthtech overview Favorable conditions for the rise of Digital Health MOH is working to achieve an integrated health information system. Main challenge is to integrate information from the private sector. Since 2014, the country is served by the Health Technology Assessment committee that analyses health technologies, All investments is supervised by the Indonesian Investment Coordinating. Investment can be through a legal entity or a commercial entity. Hospital investments are available to foreign investors, but the investment plan requires formal approval from the MoH. The geographical condition, combined with insufficient number and distribution of health workforce, lack of investment in facilities and difficulties in transportation is favorable for the rise of e.g. telemedicine. The MoH has included telemedicine in their 2015-2019 Strategic Plan Sources: 2016.export.gov (Healthcarere Source Guide), Oxfordbusinessgroup (Universal Coverage Public and Private Initiatives are Supporting Sector Growth) 29

View entire presentation