IN THE NEWS

○The development of the hospital in Indonesia is improving. Private hospitals as well as government owned hospitals are growing rapidly. With the revitalization of the public health insurance system, we are purchasing new medical equipment to attract patients with infinite competition, and are expanding medical service changes and facility investment. The number of lower grade hospitals is increasing significantly.

○According to the Ministry of Health and Welfare in Indonesia, the number of hospitals in Indonesia is 2,845, the number of hospitals is expanding in the city and provincial cities, and the number of hospitals in private hospitals that provide high-quality services for the affluent is increasing. As the Indonesian Social Security System (BPJS) has been implemented, hospitals of grade C and D have been increasing to attract health insurance patients.

○Indonesia classified medical institutions as A, B, C, and D grades, and the government divided the hospital medical delivery system into classes with the introduction of national medical health insurance. Patients with medical health insurance will transfer to A or B class according to their medical condition after passing through a D or C grade medical institution.

○Compared to 2016, the rate of private hospitals grew by 24% in 2017

○However, the number of grade A hospitals decreased, and the number of C and D grades was 395 to 666 places and 203 places to 347 places. It increased by 41%.

□ Since the introduction of the national health insurance system, the public health insurance system is activated (BPJS), and all hospitals are competing for infinite competition due to mandatory national health insurance and lower medical treatment until 2019. Cost-effective medical devices can take advantage of this opportunity as a niche market.

REFFERENCE: KEMENTERIAN KESEHATAN REPUBLIK INDONESIA