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MARKET BRIEF Indonesia Medical Equipment Business

In 2008, the number of hospitals in Indonesia reaches 1320 hospitals (MOH, 2009), or an increase of 86 hospitals from the position in 2003. Of the 1320 hospitals that number, 657 of them private with the average growth per year the number of hospitals around 1.14%. The rest is a hospital built by the government (MOH, provincial / district / city government, Army / Police, and SOE).

Especially for a private hospital, not a few newly built hospital recently claimed as an international standard hospitals. hospitals are generally equipped with latest equipment and advanced medical facilities such as luxury hotels and is located in the urban elite. Undeniably, the entry of foreign investors, the development of upper middle-class population, increasing per capita income level, and increasingly important in maintaining public health and choose where to seek treatment is one of the reasons for the increasing trend of development of this class hospital.

Development of hospitals in Indonesia

In addition, the rampant construction of a hospital run by the private sector more actively supported by the government to encourage private investment in the business of the hospital. It is actually also associated with more limited government funding for the construction of new hospitals. The government itself has long supported private investors, foreign even to participate in the construction of hospitals in Indonesia. However, only through a Presidential Decree on Investment Negative List (DNI) No. 96 and No. 118 of 2000 the government established that the foreign investor in Indonesia for the hospital business has domineer  to 49% percent of the paid up capital. This is more rampant encouraging the development of the national private hospital diversification of joint ventures with foreign investors.

The potential development of Indonesian Hospitals

Potential number of hospitals in Indonesia can be demonstrated by the high level of demand for health services that can be measured by the degree of public health. Generally, the level of public health is measured by several indicators such as infant mortality death rate (IMR), Child Mortality , Maternal Mortality Mother , Crude Death Rate , and Life Time Life expectancy at birth (life expectancy .) In general, indicators has increased from year to year, but their numbers were still high enough to indicate a relatively low level of public health.

In addition, the potential needs of hospitals in Indonesia can be demonstrated from the low ratio of hospital beds compared with the population. If the number of hospital beds in Indonesia reached 143,000, while the population of Indonesia reached 226 million (MoH, 2008), the ratio of about 1: 1580. This figure is still far from the ideal ratio of 1:500 (self, 2007). To achieve the ideal ratio is required at least 451,000 beds, and if the hospital has an average capacity of 200 beds, it will require at least 2250 hospitals. Comparing with the current condition of Indonesia, which "only" has 1320 hospitals. For comparison, the ratio of hospital beds per population in Japan has reached 1:74 in 2004, while in Malaysia has also reached the range of 1:500 (self, 2006). This condition indicates that the number of potential development and utilization of hospitals in Indonesia

For the number of patients, in 2005 the number of private hospital patients were recorded as high 2.4 million patients. This figure is projected to reach 3.5 million patients in 2010, with growth reaching 7% per year.

Conclusion In recent years, the development of hospitals in Indonesia is getting better. Not only government-owned hospitals, hospital management, private hospitals are growing rapidly. This is no doubt bring changes especially in terms of level of service and availability of better medical facilities. With the slogan "Healthy Indonesia 2010", the government also became more active to increase the level of public health. This is evident by an increase in indicators of health status and level of hospital services from year to year. In addition, through various programs and legislation, the government now also has opened wide the door of the hospital business development in Indonesia. This condition is increasingly showing that the hospital business prospects in Indonesia over the next few years is very good. However, many obstacles such as lack of health human resources, relatively high value of investments, concentration of hospital development should be focused on certain geographic regions, and are still circulating the notion that hospitals in this country are not as good as overseas hospitals that potentially inhibit the development of Indonesian hospital business further. It required the active role of government and public awareness as well as those hospitals concerted effort to improve this condition. Economic

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