ID HealthTech: Long Run Growth
With a large smoking population, Indonesians are prone to chronic diseases. Healthcare is a key focus area for the government.
1. With a large smoking population, Indonesians are prone to chronic diseases. Healthcare is a key focus area for the government
Indonesia has been known as an active-smoking nation with >75% of its population are smoking. This habit is adversely affecting the population’s overall health level with several chronic diseases haunting.
Tobacco Smoking Population, % Population
2. Healthcare is a key focus area for the government. However, the healthcare infrastructure still needs to be improved to match global standards
In response, Indonesia’s government is putting their attention and helping both in terms of financial and regulation support for Indonesia’s healthcare system. It is expected that the government expenditure will reach >35 Bn USD in 2024 for healthcare.
Moreover, the government also just launched a new regulation to increase tax for tobacco cigarettes by ~12% earlier this month.
If we closely look for the supporting healthcare infrastructure, the number of hospital beds across Indonesia still needs to be increased. From 8 different regions across Indonesia, only Jakarta already has an adequate number of hospital beds available.
3. HealthTech offers customers a more convenient health care journey and shorter overall service time
Driven by the pandemic, people are seeking contactless interaction for their needs, including healthcare.
In response to this, many healthtech players begin to provide the customer more convenient healthcare by cutting down its waiting time and providing a full-at-home customer’s journey, enabling people to reduce contact with others.
4. Although several drivers are helping HealthTech to gain position, existing obstacles still need to be organized…
Several drivers have helped the HealthTech sector. However, there are some challenges that still need to be addressed.
5. …and funding can help players address healthcare difficulties
Multiple players and investors have displayed interest in supporting the HealthTech sector. This bodes well for a rapid scaling up of the sector soon.
Furthermore, several healthtech players are starting to offer a different core value by offering mental-health focused services.
ID HealthTech Players