How Indonesia’s healthcare transformation will impact its IVD market

Article tags Centralised Diagnostics (CEDx)In-vitro diagnosticsMolecular Diagnostics (MDx)Point-of-care testing (POCT)AsiaCentralised Diagnostics (CEDx)IVD GatewayMolecular Diagnostics (MDx)Point-of-care testing (POCT)

Indonesia’s in-vitro diagnostics (IVD) market will recover and grow in the 2023 to 2026 period, reversing the deep market contraction experienced in the pandemic years. The expansion of Jaminan Kesehatan Nasional (JKN) – the country’s universal healthcare system is set to increase healthcare spending and access to diagnostic tests over the coming years, driving growth in the IVD market. 

More than half of the government’s healthcare budget for 2023 will also be set aside for healthcare transformation, including improving primary healthcare, infrastructure and technology; reshaping how and where IVD testing will be delivered in South-east Asia’s largest economy. 

The impact of expanding JKN coverage on the IVD market   

Almost 90% of Indonesians are covered under the JKN system for their healthcare needs, and the coverage will continue to expand over the next few years. The expansion of the JKN scheme to cover more Indonesians and to include more types of tests such as molecular-based tests will drive growth in IVD test volume over the next few years. 

As Indonesia carries out its healthcare transformation plans, more puskesmas – public primary healthcare clinics will be upgraded to Class D hospitals, and a fraction of Class C and D hospitals being upgraded to Class B and C hospitals respectively.  The transformation will continue to shift patient volume from hospitals to puskesmas, driving IVD market segments such as point-of-care tests (POCT).  Since the implementation of the JKN system, patient volume in puskesmas has been increasing by 10-15% in the years before the onset of the pandemic.

Current awareness levels of healthcare professionals (HCPs) and the lack of trained HCPs, particularly among district-level public health facilities such as puskesmas are limiting wider adoption and use of IVD testing. As JKN coverage continues to grow and boost patient visits to puskesmas and public hospitals, overcoming the lack of experienced healthcare professionals to drive greater access and adoption of IVD testing is key to capturing the growing opportunities in lower-tier cities and rural areas.

Essential 2023-2026 insights on the IVD market in Indonesia:

• The rapid conversion of puskesmas into Class D hospitals and the shift of patient volume to puskesmas, Class C and D hospitals, is expected to drive routine clinical chemistry test segments and instrument sales in the centralised diagnostics (CEDx) segment.  
• Point-of-care testing (POCT) market is expected to contract during this period due to a scaleback on covid-19 testing. However, there is strong growth in other test areas outside of covid-19 testing such as cardiac tests, glucose tests, and. tests for other infectious diseases.
• The expansion of molecular testing infrastructure during the pandemic is likely to lead to significant growth in the adoption of other molecular diagnostics (MDx) test parameters in the next few years, with infectious diseases testing outside of covid-19 to grow strongly.
• The tissue diagnostics (TDx) market is set to grow by almost 10% annually on average in the same period. Digital pathology and workflow solutions will be the fastest-growing segment within TDx.
• The next-generation sequencing (NGS) market is also expected to grow by more than 10% annually on average in the same period.

Thu, 09th Mar 2023 Article tags Centralised Diagnostics (CEDx)In-vitro diagnosticsMolecular Diagnostics (MDx)Point-of-care testing (POCT)AsiaCentralised Diagnostics (CEDx)IVD GatewayMolecular Diagnostics (MDx)Point-of-care testing (POCT)