Inclusion is the Future: Opportunities for Enhanced Bilateral Trade and Investment between Indonesia and Australia in Medical Devices and Assistive Technology

Health and disabilityEconomic Growth
Written By Guest User

Summary

Rapidly growing demand for health care services in Indonesia is driving demand for solutions that improve access to quality care for people with disability. Equity Economics worked with IA-CEPA ECP Katalis (Katalis) to produce this market insight to help policymakers, manufacturers, consumers and industry in Australia and Indonesia to understand the scale of the untapped medical devices (MD) and assistive technology (AT) market opportunity and lay the foundations for further growth in bilateral trade and investment. 

It provides a unique perspective on the demand drivers, policies and regulations and industry capability in both countries and recommends actions that can be taken to grow two-way trade and investment.  

Findings

There is significant unrealised potential to grow the size of Indonesia-Australia trade in MD and AT. In Indonesia, demographics, rising incomes, and the ambitious government goal of universal health coverage underpin an optimistic growth outlook. 

However, imports are well below what would be expected considering Indonesia’s population size and the nascent state of the domestic industry. The prevalence of unmet need for AT in Indonesia is significant. It is estimated that as many as 9% of Indonesia’s population (over 23.3 million people) is living with moderate to severe disability. However, 60% of the population with a moderate or severe disability is not using any form of assistive technology. This reflects both accessibility and affordability barriers, particularly for women, and people living outside of major cities.  

The majority of essential AT is imported, and high cost, due to behind-the-border barriers to trade. There is unrealised potential for imports to supplement domestic production to meet the needs of people living with disability. Enhanced trade can support increased access to AT and provide greater consumer choice and lower prices. 

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