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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Building Health Care Independence Sustainably

The Indonesian Chamber of Commerce and Industry (Kadin) encourages the realisation of medical device (medical equipment) independence through the implementation of the Domestic Component Level (TKDN) regulation. This became the main discussion in the Focus Group Discussion (FGD) held on 14 March 2024.

Previously, in 2022 to 2023, Kadin Indonesia in the Health Sector had organised a series of Focus Group Discussion (FGD) sessions with the title "Why Is Indonesia's Medical Equipment Not Yet Independent?" which consisted of 3 FGD sessions. As a result of the series of FGD sessions, the Indonesian Chamber of Commerce and Industry for Health has submitted a white paper to the Indonesian Ministry of Health on 16 March 2023, which contains recommendations on steps that must be taken to trigger the growth of medical equipment independence in Indonesia.

Based on the information shared by the Indonesian Ministry of Health, the achievements in medical equipment independence during 2020 to 2023 are as follows:

  • Health equipment products in the e-catalogue that have TKDN certificates above 50% in the third quarter of 2023 reached 2,718 products.
  • Increased transactions of domestic medical devices in e-catalogue from 2020-2021 by 12% to 30% in 2022 and 48% in 2023
  • Medical devices frozen through the Ministry of Health's sectoral catalogue reached 21,431 medical devices.
  • Increased AKD transactions up to 2x, accompanied by a decrease in imports of foreign medical devices (AKL) from 88% to 70% by 2022.
  • Increase in domestic medical device distribution licences in the last 3 years by 81.73% and is expected to continue to increase.

 

This success is a source of pride for all Indonesian people, including KADIN Indonesia, which participates in guarding the independence of medical devices, among others through regular FGD activities.

Nevertheless, with the end of the Covid-19 Pandemic, Kadin Indonesia has an interest in guarding the spirit of medical equipment independence, especially considering that the distance between pandemics is likely to become shorter. If the pandemic occurs again, we want to sink back into a shortage of medicine and medical equipment supply which is automatically followed by an economic slowdown for an indefinite period of time. We also need to be aware of the fact that during the Covid-19 Pandemic, many new medical devices industries sprouted in various countries and after the Covid-19 Pandemic ended, they experienced an oversupply of medical devices and had to try to export the excess to various countries. Indonesia, as the fourth largest country in the world with around 270,000,000 population is one of the most desirable export destinations.

In order not to return to the previous condition, where 95% of Indonesian medical equipment is imported, Indonesia must maintain this momentum by utilising regulations that can maintain the momentum of Indonesia's independence, one of which is the Regulation of the Minister of Industry No. 31/2022 which regulates the TKDN of medical equipment.

The TKDN concept is a very strong concept to support the independence of medical equipment, and if used effectively, it will be very good in encouraging the growth of Indonesia's medical equipment independence, therefore the focus of the Kadin FGD in the Health sector in 2024 is to find a formula to maintain the independence of Indonesian medical equipment, especially through strengthening the TKDN concept.

The expected output in this series of activities is to obtain Implementation Recommendations that can be taken into consideration for the Government in making policies to guard the independence of foreign medical equipment that has grown well.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry