Medical Equipment & Devices

Indonesia’s medical technology market is projected to experience strong growth, with revenues expected to reach USD 2.65 billion in 2025, according to Statista. Within this sector, medical devices are anticipated to dominate, accounting for approximately USD 2.26 billion of the total market value in the same year. Between 2025 and 2030, the market is forecast to grow at a compound annual growth rate (CAGR) of 8.68%, reaching an estimated USD 4.02 billion by 2030. 

This robust expansion in demand for medical devices is driven primarily by the Indonesian government’s ongoing implementation of the National Health Insurance program (Jaminan Kesehatan Nasional, or JKN), which continues to expand healthcare access across the country. These developments highlight Indonesia’s growing appeal as a trade and investment destination in the medical technology sector for both domestic and international companies. 

Indonesia, the world’s fourth most populous nation, is projected to reach a population of 324 million by 2045. By that time, the country will have approximately 47.3 million people aged 65 or older, with growth in this age group reaching 4.36% during 2030–2035 and 2.98% during 2040–2045. This demographic shift will make Indonesia one of Asia’s fastest-aging nations, with significant economic and social implications—particularly in the healthcare sector, where demand for medical devices and healthcare services is expected to rise sharply. 

At present, imported products continue to dominate Indonesia’s medical device market. These imports largely consist of technologically advanced instruments and diagnostic equipment such as lasers, CT scanners, and other imaging systems. Many high-tech devices, including radiotherapy units, electrical mucus suction systems, mobile X-rays, mammography machines, digital panoramic dental X-rays, cryosurgery tools, and dental elevators, are still not produced domestically. 

In addition to advanced equipment, Indonesia also imports a range of basic medical devices, such as tweezers and scissors for eye surgery. However, local manufacturers have begun to establish a stronger foothold, producing essential items including surgical gloves, bandages, orthopedic aids, hospital furniture (such as patient beds and drawers), wheelchairs, portable sterilizers, disposable gowns, anesthesia machines, coronary stents, medical needles, and surgical threads. According to data from the Ministry of Health, the domestic medical equipment industry showed a significant upward trend between 2016 and 2021, reflecting growing local capabilities. 

Recent regulatory developments have further shaped the industry. These include the implementation of digital signature systems for medical device registration, harmonization under the ASEAN Medical Device Directive (AMDD), and Presidential Instruction (Inpres) No. 6 of 2016 on accelerating the development of the pharmaceutical and medical device industries. Additionally, the Omnibus Health Bill, passed by Parliament on July 12, 2023, aims to streamline the healthcare regulatory framework. 

Despite these advancements, the sector continues to face several challenges, including lengthy licensing procedures, competitive pricing pressures, local content (TKDN) requirements, limited infrastructure, and a shortage of skilled labor. Addressing these structural issues will be crucial for Indonesia to strengthen its domestic medical technology industry and reduce dependence on imports. 

Industry participants continue to contend with several structural challenges: a complex and time-consuming licensing process, intense pricing competition, compliance with local content (TKDN) requirements, and constraints related to infrastructure and skilled human resources. A significant structural issue is the reliance on imports — industry estimates suggest that more than 70% of medical devices in circulation (particularly in government and private health facilities) are imported. This import dependence is partly driven by the urgency of medical demand and the technological complexity of many devices. 

Under Inpres No. 6 of 2016, the government has signaled its intention that, by 2030, at least 25% of medical products used domestically should be produced locally. However, domestic production remains concentrated in less complex items such as wheelchairs, patient beds, stents, anesthesia machines, needles, and surgical thread. Some basic devices — e.g. scissors, infusion tubing — still rely on imported raw materials or specialty plastics of medical grade, for which domestic polymer production is limited. 

Beyond capital requirements, the medical device industry is subject to numerous regulatory compliance demands. Establishing a manufacturing facility, obtaining permits, and meeting quality and registration standards (e.g. the NIE product license under MoH Regulation 62/2017) can extend lead times. In practice, launching a fully certified production line may take 12 to 36 months, depending on approvals and infrastructure readiness. 

Market entrants also face pricing pressures. Imported devices from Europe, the U.S., or Japan often carry reputational advantages, but suppliers from China, Korea, and elsewhere provide competitive alternatives through favorable pricing and flexible payment terms. Inflexible contract terms or rigid sales conditions can pose additional barriers to procurement in Indonesia. 

In regard to TKDN, as of 2023, only a minority of catalogued medical devices in Indonesia’s public procurement e-catalog have TKDN certificates exceeding 50%. Some industry observers question the effectiveness of enforcement and note gaps in sanctioning noncompliant procurements. However, in 2025, Indonesia introduced exemptions to TKDN requirements for certain U.S. medical device components, reflecting policy flexibility.  

Finally, infrastructure constraints and capacity gaps continue to challenge deployment. Inconsistent power supply in certain regions can affect sensitive equipment, and the limited pool of technicians and biomedical engineers means that device maintenance, calibration, and operator training are often the responsibility of manufacturers or distributors as part of service agreements. 

Indonesia presents a promising landscape for investment and industrial growth in the medical device sector. The government continues to refine its incentive framework—including fiscal incentives such as tax holidays and import duty exemptions—while easing certain local content (TKDN) rules for specific components to attract high-value manufacturing. These measures, alongside a large domestic market and an expanding healthcare infrastructure, create favorable conditions for both foreign and local investors seeking to establish or expand medical equipment manufacturing in the country. 

Imports remain vital to meeting Indonesia’s medical technology needs, particularly for advanced diagnostic and imaging devices, yet policy initiatives under Inpres No. 6 of 2016 and follow-up regulations aim to raise the domestic production share. While high-precision instruments are still largely imported, domestic manufacturing capabilities are steadily improving, supported by joint ventures, technology transfers, and growing private investment in research and production facilities. 

Foreign investors entering Indonesia’s healthcare market benefit from a liberalized investment regime, with full foreign ownership now permitted for medical device distributors and manufacturers under Presidential Regulation 10/2021. Import and distribution, however, remain highly regulated: companies must hold appropriate licenses from the Ministry of Health—including the IDAK (Distributor License) and product registration (NIE)—before market entry. Importation of used medical equipment continues to be restricted for safety and quality reasons. Compliance with ASEAN Medical Device Directive (AMDD) standards and local regulations remains essential for tender participation and public procurement. 

The most dynamic market segments include surgical instruments, diagnostic and imaging technologies, and laboratory testing equipment, as well as growing niches in dental technology, home-care devices, and telemedicine solutions. The rising prevalence of chronic diseases and the government’s expansion of the National Health Insurance (JKN) scheme continue to drive demand for both high-end and consumable medical devices. 

Success in Indonesia’s medical device market increasingly depends on strategic partnerships and localized engagement. While establishing a wholly owned subsidiary is now feasible, collaboration with local agents, distributors, or healthcare networks remains valuable for navigating tender processes and regulatory procedures. Participation in trade exhibitions, healthcare conferences, and government procurement programs offers effective entry points into this diverse and geographically broad market. 

Overall, as healthcare remains a national development priority, Indonesia’s medical technology sector stands out as one of the most attractive growth markets in Southeast Asia. Supported by steady economic expansion, a growing middle class, and continued policy reform, the country is moving gradually toward a more balanced ecosystem between imports and domestic production—a transition that will define the next decade of opportunity for medical technology investors. 

This content is done in collaboration with: