indonesia healthcare market opportunities - webinar by global growth markets

www.ggmkts.com [email protected]

Webinar presentation

Indonesia healthcare market opportunitiesWatch the webcast: www.brighttalk.com/webcast/13585/184273

20-Jan-16Pete Read, CEO

UK +44 773 986 5080Singapore +65 6632 3630

© Josh Estey and AusAID

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2Agenda

Webinar: Indonesia healthcare market opportunities20-Jan-16

1. The big picture2. Technology developments3. Market opportunities

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The big picture


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4Relatively low healthcare spendingThe big picture


Total health expenditure, 2013

Vietnam Singapore Thailand Philippines Malaysia Indonesia

6.0%4.6% 4.6% 4.4% 4.0%

3.1%

Source: WHO

% of GDP

IndonesiaUSD107

ChinaUSD367

BrazilUSD1,085

United StatesUSD9,146

Per capita

Source: World Bank

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5Potential for higher health spendingThe big picture


✔ Population 253 million, the 4th largest country in the world, behind China, India and the US

✔ GDP 2014 GDP of USD889 bn, 5% up on 2013, projected to increase 5.5% in 2015 (IMF)

✔ Middle class 8-9 mn people enter the middle class each year, pushing the middle class population from 85 mn now to 141 mn by 2020

✔ Cities 25 cities/regencies with >500k middle class, expected to jump to 54 cities by 2020

✔ Universal healthcare Universal healthcare insurance program introduced in 2014, driving spending up 200% to USD15 bn by 2020 (GP Farmasi)

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6World’s largest health insurance programThe big picture


919

533

109 104 45

1,710 hospitals have signed up for JKN, which represents >70% of all hospitals

No. of hospitals

Hospitals participating in JKN, 2015

Source: Ministry of Health

2014 120 million people covered

2015 Public company workers, and up to 50% of private sector workers covered

2016 All members of Jamkesda (regional insurance scheme for poor) covered

2018 100% of large private company workers and 80% in small companies

2019 Universal coverage for 250 mn

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7Growth of private hospitalsThe big picture


2011 2012 2013

315

543666

No. of hospitals

The number of private hospitals is increasing by ~50% annually

Indonesia: Private hospitalsMiddle class boom is biggest in the world apart from China and IndiaHigh spending power and willingness to pay a premium for qualityThe middle-class offers a huge untapped market for private healthcareJKN driving rising demand for public hospitals is shifting affluent Indonesians towards private sector

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8Private hospital groups now investingThe big picture

Source: www.ggmkts.com/insights


Announcements of expansion plans by local and foreign players

Siloam hospital

• Siloam Hospital Group (ID)

• Kalbe Farma (ID)

• Columbia Asia (US)

• Apollo Hospitals (IN)

• IHH Healthcare (MY)

BIMC Hospital, Bali Rumah Sakit, Columbia Asia

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9Pharma industry expanding at 10%The big picture


Domestic companies

70%

Foreign companies

30%

USD6.2 bn

Indonesia: Pharma companies55% Ethical drugs market share

206 Pharma companies in Indonesia

USD6.2 bn Pharma market in 2015

>10% growth forecast, mainly due to JKN

JVs are common, due to protection for local companies

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Technology developments


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11USD1 bn Med Tech market by 2018Technology developments


Indonesia: Medical device market structure

Diagnostic imaging

35%

Consumables24%

Auxiliary equipment

6%

Dental products2%

Orthopaedic implants

2%

Others31%

% of volume

Source: GGM; Industrial Technology Research Institute

2015USD

860 mn

Heavy reliance on imports13% annual market growth Faster growth for imaging and orthopaedics

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12The dawn of mHealthTechnology developments


Some Indonesians are reluctant to see a doctor as they are scared, and this may be due to a lack of

medical knowledge. Moreover, some Indonesians lead unhealthy

lifestyles and this definitely affects their health. I hope that through apps, Indonesians can obtain

medical and health knowledge and take care of their health.

Dr Jacques Durand, Founder of Dokter Gratis

“

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13Major players investing in health techTechnology developments


Source: www.ggmkts.com/insights

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14Remote health faces some hurdlesTechnology developments


Some rural areas have limited access to healthcare services…

There is not yet a formality to bring the different players together….

It is difficult for foreign mHealth companies…Indonesia needs to improve its infrastructure

and connectivity in hospitals and satellite clinics…

The Ministry of Health can also work with the telco companies…

Francis Puno, Chairman, Southeast Asia Working Group, Continua Health Alliance

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Market opportunities


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16Insurers, providers and pharma neededMarket opportunities


Finance Private insurance required to fill gaps and top up the JKN coverage

Services Private hospital demand booming as public sector comes under strain from increased demand; training of physicians is also needed

Pharma Ethical drugs market expected to increase at double digit rates thanks to uplift in prescriptions

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17Big potential for apps and remote healthMarket opportunities


Tech Health apps and online information and consultation services are attracting millions of users

mHealth The need for connected health is clear, and commercial services are possible if the infrastructure is well thought out and trialled

Tele-health Massive dispersed rural population needs to be connected to health services

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