Magister ManagementUniversitas Gadjah Mada Jakarta

presents

Indonesia Healthcare Business Outlook and Opportunity 2015

& Medical Equipment Factory Visits

Company Visit:PT D&V Medika (Medical equipement) Factory Visits

Seminar Topic Outline:

The operating environment for the pharmaceutical industry in Indonesia will be complicated and

uncertain as the country moves towards universal health cover, not least because of major new

developments in drug procurement (the E-catalogue) and reimbursement (the national drug formulary

and extension of the INA CBG/case mix system). Also, the end of President Yudhoyono‟s term in 2014

means added uncertainty about the longer-term political direction as the first stage of the NHI scheme is

put in place. Expansion of health cover under the NHI will inevitably boost the pharmaceutical market.

However, the infrastructure will have to be sufficiently developed to meet the new demand for health

services and this will take time. The private sector will have to be engaged and issues relating to

reimbursement of private hospitals will need to be resolved. “They need to extend to the private sector

and if this is not attractive enough the system might break down. Because as it is, given the serious

shortage of infrastructure, there are huge queues. So it‟s not healthcare for all, if it doesn‟t work

properly, it will just become healthcare for the poor.” (Industry Consultant). In the early years of the NHI

scheme, coverage is not expected to expand dramatically as it involves bringing together the two

schemes already in place (Askes and Jamkesmas). “It‟s basically going to be the same group of people

who get covered. It‟s not dramatically expanding coverage in any fashion.” (Industry Consultant) The

private market is considered unlikely to change much in the early years of the new scheme. Thus,

demand for original brands is expected to continue. “Even though most MNC products are not listed in

the national formulary they will still have a big market because, at least for the next two or three years

there will not be much change in terms of the private sector. So it must be a challenge because of

introduction of the NHI, but also the private market will keep growing, because GDP keeps growing.

Especially for people who have money, they would like to have more sophisticated treatment that might

not be available in the public sector.” (Distributor) Overall demand for medicines will grow as coverage

expands, but the emphasis will increasingly be on low cost generics, with domestic companies likely to

be the main beneficiaries. These companies are already gaining ground in the hospital market where

listing requirements are becoming tougher. Amid the uncertainties, underlying drivers for growth remain

strong. New hospitals are being built by the government and by private providers, and the primary care

infrastructure is being strengthened. The economy continues to perform well, with economic and

infrastructure growth expanding beyond Java and Sumatra, opening up opportunities in 10- 15 new

cities. Multinational companies are already beginning to expand their reach to these new cities. With a

population of over 248 million, Indonesia is the fourth most populated country in the world, and the

population‟s health awareness is likely to increase amid publicity about the new NHI scheme. The

market for OTC medicines is also growing strongly. “The bulk of our sales is in the regular, self-paid

market and that is going to continue to grow. Because of the middle class. […] There is a lot of pressure

from the middle class and there are a lot of new hospitals opening and that is where we operate most

successfully.” (Multinational Company Executive)Market Prognosis 2014-2018, Indonesia 78 The

government is expected to revise its negative investment list and ease the restrictions in respect of the

pharmaceutical industry before the end of 2013, although the details are not yet clear. The multinational

industry will welcome easing of the rules on foreign investment, which is currently set at a maximum of

75%. As considerable capital, technology and intellectual property are involved, companies are reluctant

to share control of decision-making with local partners. It can be also challenging to find suitable local

partners for the obligatory 25% share. Companies are generally optimistic about future growth. “I think

we have been growing very healthily in the last ten years. It will develop at least as fast as that […] I say

„at least‟ because the economy is growing, it‟s becoming stronger and that gives people more money to

finance their healthcare, and also the fact that healthcare is becoming an issue for the government and

politics […] and from that angle I would expect that development is still positive.” (Industry Association

Executive)

Seminar Objective :

Sharpening Indonesia’s Healthcare Business Knowledge

1. Target Audience

All Magister Management Universitas Gadjah Mada Students and Exclusive Inivitation from Healthcare Industry

2. Seminar Content

Indonesia Pharmaceutical Outlook 2015

Speaker:Mr. Anand Srinivasan (Managing Director IMS Health Indonesia)

Anand Srinivasan is the GM for IMS Indonesia. Prior to his current role, Anand has been the

GM for IMS Malaysia & Singapore. Anand has also been a part of the IMS consulting group

and has supported numerous healthcare players globally in both strategic and operational

areas. During his various roles in the industry, he has been responsible for implementing

market activities as well as developing strategic solutions. Before IMS Anand was with

AstraZeneca Pharma in the India office where he was responsible for Corporate Strategy &

Business Development. His contributions at AstraZeneca India include defining the AZ India

growth model and developing long-term forecasting framework for AstraZeneca India. Anand

holds an MBA (General Management) from the University of Sheffield and a graduate degree

in Electrical and Electronics Engineering

“Herbal Medicine - The Business Opportunity in Indonesia”

Speaker:Mr. Dr. Hindrianto Lukas, MBA

Dr. Hindrianto Lukas, MBA former Managing Director of PT. Soho Industri Pharmasi, former

Managing Director PT. Ethica Industri Pharmasi and Mr. Lukas also former Managing Director

of SOHO Global Medika.

Moreover in Mr Lukas is widely known as the “PIONEER and TREND SETTER Natural

Medicine in Ehtical and Prescription Market.

“Medical Device and Equipment Business in The Middle of BPJS & e-catalogue system”

Speaker:Mr Vincentius Lianto (Founder & CEO of D&V MEDIKA Healthcare Group)

DV MEDIKA is a private national enterprise operates on medical and hospital equipments,

establishes in the mid june 1999 in denpasar bali, supported by the entire staff members hard

work and high dedications, the company developed well and this is gift of almighty god that

really thank-full for that.

3. Date & Class Size

The Factory visits & seminar would most likely be held on March 28th, 2015. The Factory Visit will be in the morning, followed by the seminarwill take about 140 minutes of durations.

Class Size would be a minimum of 100 participants