Indonesia’s health care industry is on the rise

 26-Sep-16, The Jakarta Post

Data from WHO Global Health Expenditure Database has revealed that, in 2014, Indonesia’s spending on healthcare totaled only 2.8 percent of GDP, compared to the global average of 9.9 percent.

Image: The Jakarta Post

Full implementation of National Health Insurance (JKN) is targeted for 2019 and was initially been seen as the main catalyst to the country’s growth in the healthcare industry.

Thanks to regulation disparities, poor infrastructure, inadequate medical staff and ultimately funding shortfalls, many analysts maintain their doubts that the program can achieve its main objective, covering 260 million Indonesians by 2019.

Substandard health care service in Indonesia represent investment opportunities. Indonesia’s conglomerates have started investing heavily in the hospital business. Siloam plans to reach total capacity of 10,000 beds with 22 new hospitals coming online by 2017, while Mitra Keluarga has raised US$372 million through an IPO, to expand its hospital network to 18 by 2020.

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 Elsevier APAC Healthcare Update