The Indonesian medical device market is worth about $500 million in 2010 and is largely dominated by imports. Foreign companies who want to sell their medical devices in Indonesia need to obtain two licenses — a Distributor’s License and a Product License. For distribution, foreign companies can set up their own local entities in Indonesia or utilize an Indonesian distributor with a medical device Distributor’s License issued by the Ministry of the Health (MOH).
Foreign medical device companies (or their Indonesia distributors) must also apply for Product Licenses from the MOH before products can be imported, sold, and used in Indonesia. Medical device Product Licenses are valid for a maximum of 5 years but need to be renewed. On the other hand, the Distributor’s License is valid for an indefinite period of time.
In addition, Indonesia’s weak currency and low labor costs makes it an attractive location for device manufacturing. Reports reveal that Indonesia’s most popular medical device export products include contact lenses, electrometrical equipment, and hearing aids.