The system has struggled to cope and at times has appeared to be on the brink of collapse with ICUs overflowing and staff stretched thin. Indonesia also lost precious time mobilizing resources and measures for both treatment and mitigation of the virus. While vaccinations are underway, the country is far from recovery and risks being isolated as a result of travel restrictions.

The tough pandemic experience, however, has strengthened the hand of those officials who are more open to foreign investment in a sector long virtually closed to foreign companies. With the new Omnibus Job Creation Law mentioning health care more aggressively, it is time to gauge the regulatory changes and opportunities for investors.

Without a doubt, Indonesia’s large population and rising middle class make it an attractive market for healthcare investment. The World Bank has observed that the middle class has an increased preference for private healthcare and higher quality services. To satisfy that demand, increased investment at all levels is needed to improve the quality of service delivery is crucial.

Indonesia also has the lowest number of hospitals per capita in ASEAN and the second lowest doctor-to-patient ratio. As a result, many Indonesians travel abroad for better medical care. This is not a viable option for many people. The system at home must be fixed.

The Mission

Indonesia’s need to improve its healthcare sector provides a great opportunity for foreign investment and collaboration. Our mission, Healing Signs: Investment Opportunities in Indonesian Health Care, will meet with Indonesian officials, doctors, start-ups and regulatory experts to assess the environment for pharmaceuticals, medical devices and health care providers. We have also prepared a regulatory roadmap for companies looking to invest or expand in Indonesia.

The mission will have the following meetings, among others:

• Health Minister Budi Gunadi Sadikin
• Coordinating Maritime and Investment Minister Luhut Binsar Pandjaitan
• Head of the Indonesian Food and Drug Monitoring Agency (BPOM) Penny Lukito
• Roundtable with private Indonesian health care providers
• Discussion with the head of the Indonesian National Health Insurance system (BPJS)
• Panel on the current state of Covid-19 in Indonesia
• Panel of local doctors on the needs they perceive in the system