The number of new applications of domestic products grew 400% in H1 2020.
Indonesia's medical consumables market is expected to gain from the government's move to speed up the application process for licences to produce certain medical devices and household supplies, according to a report from Fitch Solutions.
Following the Ministry of Health's policy, the number of medical consumables that were approved by Indonesia's regulatory body for medical devices in H1 2020 was more than double that of the same period last year, latest official data revealed.
The number of new applications of domestic products grew by over 400%, whilst approvals grew by nearly 200%. Some imported products, such as masks and surgical gloves, have also recorded an increase in approvals.
Indonesia has relaxed its trade regulations of health equipment and personal protective equipment (PPE) in order to tackle the shortages of critical medical equipment amidst the pandemic, the report noted.
"The government also removed import duties on 73 types of medical and disease prevention products in response to the pandemic," the report stated.
Indonesia's consumables market is expected to expand by a 2019-2024 CAGR of over 10% in both local currency and US dollar terms, to $319.6m (IDR4.5t) by 2024. It is projected to grow over 15% in 2020 alone, driven by high PPE demand.
"That said, we do highlight that market growth will be restricted by an economic contraction in 2020, following a further economic downslide in Q220 as the Covid-19 pandemic continues to affect economic activity in Indonesia," the report added.
Do you know more about this story? Contact us anonymously through this link.