BMI View: Indonesia is one of the most promising markets for pharmaceutical and healthcare companies in South East Asia. The country's large population, positive economic outlook and considerable disease burden bode well for growth in demand for drugs, medical devices and healthcare services.
We highlight Indonesia as one of the most promising markets for pharmaceutical and healthcare companies in South East Asia. Indonesia's public and private sector spending within the two sectors is set to increase significantly over the next decade, presenting a large and expanding commercial opportunity for drugmakers, medical device companies, hospital operators, health insurers and other service providers. Indonesia's demographic profile and economic outlook anchor our positive view of the overall commercial opportunities in the country. However, we do note there are several risks to bear in mind.
Key Growth Drivers Of Pharmaceutical & Healthcare Spending
Large, growing population and increasing life expectancies: Indonesia's total fertility rate (TFR) was 2.6 in 2012, indicating an expansion in the country's population. However, population growth is expected to slow, as TFRs stabilise in line with improving quality of life. Life expectancy in Indonesia is currently 70 years, but the rollout of universal healthcare and further uptake of pharmaceuticals will contribute to increasing life expectancy and therefore an ageing population. Over time, an ageing population will drive demand for pharmaceuticals and healthcare services.
Considerable burden of disease: mortality rates in Indonesia for a range of diseases and conditions are still high, relative to the country's development status. Indonesia also has the world's third largest tuberculosis burden behind India and China, with 91,000 annual deaths and 528,000 new infections every year. However, rising incomes, accelerating urban migration and dietary shifts indicate that diseases such as...