1. Healthcare spend in Indonesia has traditionally been low, compared to other regions; However we have seen a gradual increase over the years

Healthcare spend in the Indonesia has been relatively low with traditional medicines being preferred widely.

However, the healthcare expenditure has steadily increased in the recent years driven by rising GDP per capita, urbanization and an increase of lifestyle-related diseases such as cancer and diabetes.

Healthcare expenditure in Indonesia has been low as the population preferred informal channels for medical care – owing to cultural aspects + lack of strong healthcare infrastructure.

There has been a steady increase in healthcare expenditure over the years – However, compared to global benchmarks , there is still massive scope for growth.

2. Governments JKN healthcare scheme has caused a significant increase in healthcare demand; However the supply infrastructure is not fully geared to cater to this increase

The citizens of Indonesia have benefited massively from JKN with its wide healthcare coverage and low exclusions. This is driving up demand for healthcare services.

However, there is a shortage of trained medical professionals as well as hospital infrastructure which is leading to some inefficiencies.

3. eHealth platforms have sprouted amidst this demand-supply mismatch; However there has been limited funding inflow

Halodoc, Alodokter and Grab Health are few key players currently operating in the space focussed on offerings in eConsultations, ePharmacy and Insurance. Each payer has a distinct focus while also having a wider spread of offerings.

Funding inflow has been limited when compared to other evolved markets which has limited scale to an extent.

4. COVID has propelled demand for eHealth further and brought the sector into the spotlight

Government has heavily relied on the eHealth players to contain the effects of COVID. They have gone as far as to recommend eHealth services to all citizens witnessing mild COVID symptoms.

The major players have also consequently started offering COVID helplines and testing services to the consumers often with partnerships. This has rapidly increased the demand for eHealth services with all major players reporting a massive uptick in their GMV across major business models.

This augurs well for the future growth potential of eHealth services.