Medical device firms raise concerns over Indonesia's centralised procurement


A medical professional is using TeleCTG device on a pregnant woman's stomach in Kupang, East Nusa Tenggara, on Nov 17, 2018. - Photo: Courtesy of TeleCTG/-

JAKARTA: Local medical device businesses have called for improvements to healthcare procurement governance, arguing that purchasing decisions should prioritise not only budget efficiency but also product quality, patient safety and the long-term sustainability of domestic manufacturers.

Indonesian Medical Devices and Laboratory Companies Association (Gakeslab Indonesia) chairman Kartono Dwidjosewojo said distribution played a critical role in ensuring the availability of quality medical devices across the archipelago.

“Distribution is not merely part of the supply chain, but an essential element in ensuring medical devices reach communities safely, on time and in accordance with applicable quality standards,” he said on Thursday (June 18) during Health Ecosystem Week 2026 discussion at Sebelas Maret University in Central Java, as quoted by Tempo.

Industry representatives also raised concerns about fiscal pressures that have narrowed spending capacity among regional governments, particularly for healthcare services and medical equipment procurement.

They argued that fiscal policies and procurement mechanisms should be continuously evaluated to support equitable healthcare access, while also stimulating regional economic growth.

Since last year, President Prabowo Subianto implemented austerity measures by cutting transfers to regional governments to fund his priority programs, such as the free nutritious meal programme and the Red and White Cooperatives, both of which are controlled by the central government.

Indonesian Medical Device Ecosystem Development Association (HIPELKI) chairman Randy H. Teguh said industry players supported government efforts to improve tax compliance but emphasised the need for policies that foster a healthy business environment.

According to him, balanced governance is needed to ensure companies can continue growing while contributing to public healthcare services.

Meanwhile, Indonesian Medical Device Manufacturers Association (ASPAKI) chairman Imam Subagyo underscored the importance of strengthening the domestic medical device industry through the development of local raw materials, components and manufacturing technologies.

Such measures, he said, would help improve Indonesia's industrial self-sufficiency and reduce dependence on imported products.

Association of Indonesian Medical Gas Installers (AIGMI) chairwoman Deviatri Syam highlighted the need for stronger support for post-procurement infrastructure, including equipment installation, calibration and maintenance.

She noted that such services play a direct role in patient safety and the quality of healthcare delivery in hospitals.

Sebelas Maret University vice rector for academic and research affairs Fitria Rahmawati, said lessons from the Covid-19 pandemic demonstrated that health care was a strategic component of national sovereignty, requiring strong domestic capabilities in science, technology, innovation and manufacturing.

“We need an ecosystem capable of connecting research with industry, industry with markets, markets with regulations and all of them with the real needs of society,” she said.

Speaking in Jakarta last week, Health Minister Budi Gunadi Sadikin said healthcare-related industries had been growing faster than the national economy, with healthcare services expanding by around 7.6 per cent year-on-year, pharmaceutical manufacturing by 7.5 per cent and the medical device industry by approximately 12 per cent.

To better capture the sector's economic contribution, the government plans to use the 2026 Economic Census to gather more comprehensive data on business activities, investment, employment and healthcare-related industries.

Budi called on hospitals, clinics, laboratories, pharmacies and healthcare manufacturers to actively participate in the nationwide data collection effort. - The Jakarta Post/ANN

 

 

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