Indonesia Connected Healthcare - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Indonesia Connected Healthcare Market size is estimated at USD 0.69 billion in 2024, and is expected to reach USD 2.38 billion by 2029, growing at a CAGR of 28.18% during the forecast period (2024-2029).

Key Highlights

• As spending by hospitals increases, followed by the need for health practitioners online, it is expected that health tech businesses will penetrate the market, resulting in the development of an environment needed for domestic platforms to partner with hospitals, driving growth in the studied market.
• Since the government of Indonesia started to boost health technology services in the country, the market has become more established with increasing demand. At present, Indonesia is home to many digital health start-ups, which are mainly dominated by e-pharmacy and online consultations. Other types of health technology businesses available in Indonesia include on-demand healthcare, online marketplaces, artificial intelligence (AI), and IoT. Some of the telemedicine providers are AloDokter and HaloDoc.
• Government initiatives to develop the healthcare ecosystem in Indonesia are expected to drive the growth of the market. For instance, in April 2023, the Health Ministry of Indonesia launched a regulatory sandbox system to develop the digital health innovation ecosystem in Indonesia that includes telemedicine.
• However, the availability of limited healthcare infrastructure is challenging the market's growth by adopting technology in various applications. For instance, Mayapada Healthcare Group in Indonesia faces challenges in implementing electronic medical records in its services. As a result, the group seeks to lead the healthcare industry's digitalization by investing in AI and advanced hospital information systems.
• * Digital health is growing rapidly in Indonesia and has potential in the digital health business. As the ecosystem grows and the investment climate is favorable, more businesses are applying new and existing technologies. Secondly, Indonesia has a larger young demographic that is actively engaged with technology and benefiting from the development of internet connectivity. Such market conditions and geographical features have made Indonesia a key market and presented opportunities for digital healthcare.
• The COVID-19 pandemic catalyzed growth in Indonesia's connected healthcare sector. Lockdowns and social distancing measures prompted a shift toward remote healthcare, leading to a surge in demand for telemedicine consultations, remote patient monitoring, and medication deliveries. Government initiatives, such as providing and promoting telemedicine services, significantly bolstered this adoption. For instance, during the pandemic, the government of Indonesia provided free services for asymptomatic and mild COVID-19 patients, for which it collaborated with 11 telemedicine platforms to provide free telemedicine services and medicine delivery services.

Indonesia Connected Healthcare Market Trends

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.

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.

Indonesia Connected Healthcare Industry Overview

The market studied is moderately consolidated owing to the presence of several domestic and international vendors operating in the market. The major players are adopting strategies, like product innovation, collaboration, mergers and acquisitions, and partnerships, to expand their product functionality and stay competitive in the market. Some of the major players in the market are Medtronic PLC, Philips Indonesia, GE HealthCare, and PT Siemens Healthineers Indonesia.

• December 2023: A subsidiary of PT Telkom Indonesia (Persero) Tbk (Telkom), PT Administration Medika (Admedika) collaborated with Kalbe Farma's digital health service platform, KlikDokter to launch cashless telemedicine services. Telemedicine services encompass a wide range of online healthcare services, from remote consultations and medication deliveries to enhancing the overall accessibility and convenience of healthcare services. Moreover, the KlikDokter application offers tailored features, simplifying healthcare management for both insurance firms and corporations to manage healthcare through an easy-to-use online platform.
• August 2023: A new health law came into effect and was approved by the Indonesian House of Representatives during its 29th Plenary meeting in July 2023, despite challenges and objections from several medical practitioners. This new Health Law provides legal certainty on the practice of telemedicine services offered directly between health service facilities and the general public. This pivotal development empowers licensed medical practitioners and health care professionals to seamlessly extend medical care and health consulting services directly to the general public through authorized health service facilities.

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