Market Trends of Indonesia Connected Healthcare Industry
The Telemedicine Segment is Expected to Drive the Market's Growth
- Initiatives taken by the government of Indonesia are expected to drive the growth of telemedicine solutions and services in the country. According to the Jakarta Globe and Healthcare IT News, the Indonesian Ministry of Health is currently employing the services of privately run telemedicine start-ups, including Aldokter, GrabHealth, and Halodoc. These platforms tapped by the government offered complimentary telemedicine services to COVID-19 patients with mild symptoms, such as teleconsultations, medication delivery, and even booking COVID-19 tests.
- Healthcare start-ups in Indonesia are undergoing funding initiatives to accelerate their mission to help more people get accessible, reliable, and quality healthcare. For instance, in July 2023, Halodoc, a digital healthcare ecosystem platform in Indonesia, completed a series D funding round led by PT Astra International Tbk (Astra) through its subsidiary, PT Astra Digital International, to simplify healthcare access.
- In addition, according to the Ministry of Health's data (ISOMAN Programme), Halodoc witnessed the impact of telemedicine in addressing patients' pain points, principally during the COVID-19 pandemic, where more than 40% of patients used telemedicine, with 96% of them redeemed e-prescriptions digitally.
- The growth in the adoption of technology-based solutions and government steps to develop a technologically advanced healthcare ecosystem to provide better healthcare services to people in the country are expected to accelerate the market's growth. In a 2023 survey conducted by Standard Insights, approximately 27.49% of respondents reported that they did not have prior experience with online health consultations. Additionally, 8.83% of participants mentioned they had only used online health consultation services once.
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Java is Expected to Hold a Major Share in the Market
- Java is a highly populated island in Indonesia, and population density is often a key factor in healthcare infrastructure development, translating to greater investment in infrastructure, including healthcare facilities. Major cities in Java, such as Jakarta, Surabaya, and Bandung, are likely to have more hospitals and medical specialists than other regions.
- The government's steps to develop international-standard hospitals are expected to drive the market's growth, creating demand for connected solutions and services in the region. For instance, in June 2023, the government of Java stated a plan to establish an international-standard hospital in Depok to help improve the quality of life of the people living in the province at the inauguration ceremony marking the construction of the hospital in Depok.
- Even in Java, Indonesia's main island, Jakarta has a large number of remote communities with limited or no access to healthcare. The Baduy community in Banten province resides in villages reachable only after trekking long distances through the countryside. This is a common issue across many parts of the country. In response, Indonesia’s Ministry of Health has focused on the rise of digital health. In its Blueprint for Digital Health Transformation Strategy, the government urged local healthcare providers to embrace the use of data and technology to achieve better distribution of quality health services throughout Indonesia.
- For this, the Universitas Indonesia Hospital (RSUI), the teaching hospital of the state-run University of Indonesia, collaborated with the Ministry of Health on their digital health drive. The hospital recently launched a new digital application named RSUI Telmon AI. This app incorporates telemedicine, remote monitoring, and artificial intelligence (AI) capabilities, and patients can consult with general practitioners and specialist doctors from RSUI.
- A growing government health budget is expected to allow the government to invest in upgrading healthcare infrastructure facilities and building new ones equipped with advanced technologies, such as investment in telemedicine software for remote consultation, electronic healthcare records for secure storage and retrieval of patient data, and wearable devices and patient monitoring.
