Anand Srinivasan, Country Manager, Indonesia
Indonesia Market Overview
With a population of approximately 237 million spread throughout 17,000 islands over 5,000 kilometers, Indonesia’s geography poses unique challenges in pharmaceutical drug distribution. Add to that the facts that nearly 35% of healthcare expenditures are paid for out-of-pocket and over 50% of the population are without healthcare insurance, and the result is that Indonesia, like many markets in the region, faces challenges of accessibility and affordability.
Healthcare expenditure remains extremely low as a percentage of total GDP, and the government does not anticipate a significant increase in this measure. The current National Health Insurance (NHI) scheme technically covers 76 million Indonesians, yet only 15 million use the service due to the low priority of healthcare for some remote Indonesians or a lack of understanding that they are actually covered. Broader implementation of an NHI scheme remains on the agenda in the medium to long term
Indonesia’s government is committed to addressing residual healthcare challenges; indeed, healthcare has now become a top government priority, evidenced by its declaration that it will double its healthcare expenditures to 5% of GDP by 2014. The 2011 healthcare budget includes a 26% increase in allocations, from Rp 20.8 trillion to Rp 26.2 trillion, according to the 2011 draft state budget presented in August 2010.
Rising disposable incomes and a period of projected vibrant growth will contribute to sales growth beyond historical benchmarks. With the possibility of public health insurance well in the future, more Indonesians with growing incomes will turn to private health insurance, which currently only 3% of the population hold. Nonetheless, generics will continue to grow in importance with most Indonesians who pay for their medicines out-of-pocket likely to opt for lower cost options. All told, the total pharmaceutical growth rate projects to 12.7% combined annual growth rate from 2009 to 2014 according to the IMS Health Market Prognosis 2010.
Given the rapidly changing pharma landscape in Indonesia, successful multinationals are now assessing strategies that can be leveraged to achieve growth. For businesses that have relied on the steady performance of megabrands this means reevaluating portfolios and striving to offer a broader scope of products in Indonesia. For others, it means entering the generics space either through in-line generics offerings or through partnership with or acquisition of strong Indonesian manufacturers that can promise growth. IMS Health is involved in all of these scenarios, through our full range of comprehensive services.
To help clients realize the potential present in the Indonesian market, IMS provides a number of services ranging from Information and Analytics to Commercial Effective Services and Management Consulting. These include:
Information & Analytics
- Indonesia Total Market Audit (ITMA) – The ITMA records national sales of pharmaceutical products from more than 80 manufacturers. For more information, click here.
- Indonesia Pharmacy Audit (IPA) – IPA is based on sales of ethical and over the counter (OTC) products through retail pharmacies. It shows extrapolated sales data from regular pharmacies to patients (selling out) with a national level projection. For more information, click here.
- Indonesia Hospital Pharmacy Audit (IHPA) – IHPA is a nation-wide survey that covers the usage of pharmaceutical products in hospitals in Indonesia. IHPA provides extrapolated sales data from Pharmacy Hospitals to patients (selling-out) at a national level with no breakdown by geography. It also monitors hospital consumption across Indonesia with no visibility into sub-regions. For more information, click here.
- Indonesia Drugstore Audit (IDA) – IDA is based on sales of ethical and OTC products through licensed drug stores. IDA shows extrapolated purchase data of license drug stores at a national level with no breakdown by geography. Unlike pharmacies, drug stores in Indonesia are legally allowed to sell OTC products only; in practice, this does not always happen. For more information, click here.
- Indonesia Medical Data Index (IMDI) – IMDI is a bi-annual report that tracks patients, consultations, and treatments prescribed in the primary care sector. Data includes the number of prescriptions, doctor and patient demographics, diagnosis, etc. Moreover, this report provides a detailed picture of prescribing behavior and diagnoses based on semi-annual surveys of doctors. For more information, click here.
Commercial Effectiveness Services
Commercial Effectiveness Services in Asia-Pacific deliver evidence-based market insights to support critical sales and marketing decisions. The services have two vital elements: Commercial Intelligence and Commercial Analytics.
Commercial intelligence offers performance analytics and performance tracking, brand insights, primary market research, learning solutions, incentive compensation and a range of business transformation services.
Commercial analytics provides integrated and channel optimization, cross geography, portfolio and channel promotion allocation, field force sizing and structure optimization; promotional program and ROI analyses, prescriber, patient and account profiling, segmentation and targeting and account management optimization.
Click here for more information on our Training courses in Asia-Pacific.
Management Consulting (MC)
MC provides IMS Health with a unique opportunity to serve our clients and people better.
We are the advisor of choice to the executives of leading global life sciences organizations:
- The MC team focuses on issue-based, value-add engagements supporting clients.
- The MC team maintains 5 core areas of specialization: Brand & Commercial Strategy (B&CS), Strategy & Portfolio Analysis (S&PA), Pricing & Market Access (P&MA), Health Economics & Outcomes Research (HEOR), and Competitive Intelligence (CI). It leverages the foundation of IMS data assets.
We facilitate our clients’ success:
- The MC team is committed to high-quality engagement, which supports both company and product issue resolution, ultimately facilitating clients’ personal successes.
We provide unsurpassed opportunities for our people and teams:
- Our MC team is a high-performing culture, comprised of 500 people on five continents, all of whom share common values and goals.