The Indonesian Health Ministry, led by Director General of Pharmaceuticals and Medical Devices, Lucia Rizka Andalusia, has highlighted the potential for domestic medical devices to significantly reduce medical costs. The key points from her statement are:
- Cost Reduction: Producing medical devices domestically can lower production and import costs, as well as maintenance expenses. This could potentially reduce overall medical costs, which currently account for about 30-50% of total healthcare expenses.
- Import Substitution: By increasing domestic production, Indonesia aims to substitute imported medical devices, thereby supporting local industry and reducing dependency on foreign suppliers.
- Government Support: The Ministry of Health is working on various strategies to support the medical device industry, including collaborations with other ministries, institutions, and associations for comprehensive research and development. Regulatory support is also being strengthened through Regulation Number 28 of 2024, which is part of the broader Health Law (Law Number 17 of 2023).
- Quality Assurance: Some Indonesian-made medical devices, such as syringes, are already demonstrating high quality. For example, Indonesian syringes are used globally by UNICEF and have received prequalification from the World Health Organization (WHO).
- International Cooperation: The Ministry of Industry reported a successful collaboration with Turkey, marked by a USD10.5 million business agreement. This partnership was formalized during the 2024 Expomed Eurasia event in Istanbul, aiming to enhance cooperation between the Indonesian and Turkish medical device industries.
Overall, the Health Ministry’s focus is on bolstering domestic production capabilities to reduce costs and enhance the quality of medical devices available within Indonesia.
The Indonesian Health Ministry has emphasized that increasing the production of domestic medical devices can significantly lower healthcare costs. Key points include:
- Cost Efficiency: By producing medical devices locally, Indonesia can reduce both production and import expenses, including the costs associated with maintenance. Medical devices contribute to 30-50% of total healthcare costs, so domestic production could lead to substantial savings.
- Regulatory Support: The government is backing the medical device industry with new regulations, specifically Regulation Number 28 of 2024. This regulation, part of the Health Law (Law Number 17 of 2023), aims to enhance the domestic industry’s capability and ensure market stability.
- Quality and International Recognition: Indonesian-made medical devices, such as syringes, have gained international recognition for their quality. For instance, syringes produced in Indonesia are used globally by UNICEF and have been prequalified by the World Health Organization (WHO).
- International Partnerships: The domestic medical device industry is also forging international partnerships. Notably, Indonesia has signed a USD10.5 million memorandum of understanding with Turkey, enhancing cooperation and expanding market access.
- Strategic Initiatives: The Ministry is working on several fronts to support the industry, including collaborating with various ministries and institutions for research and development and ensuring the implementation of supportive policies.
Overall, these efforts reflect Indonesia’s commitment to reducing healthcare costs through local production and enhancing the quality of its medical devices.