According to the 2024 Macroeconomic Policy and Principles of Fiscal Policy (KEM-PPKF), the Ministry of Finance has increased the health budget from IDR 187.9 trillion to IDR 200.8 trillion.

Even though Covid-19 is no longer considered a pandemic, the 2024 state-budget amount is more than the health budget listed in the 2023 State Budget (APBN), IDR 178.7 trillion. According to Sri Mulyani Indrawati, minister of finance, the 2024 budget for the health sector aims to promote health reform and distribute health services evenly. As medical technology rapidly advances, "Indonesia's capabilities, not only in the hospital sector but also in the pharmaceutical industry, must be improved and ready for advanced technology utilization." 

The government has prioritized healthcare to support the goals of Indonesia Emas in 2045 in transforming Indonesia into a developed country. It can be seen that the budgeting in 2045 has a significant increase compared to the previous year. It will be an opportunity for the health business sector to focus on supporting the strategy called “Six Transformation of Healthcare.”  

The Ministry of Health's focal points cover insurance systems, health infrastructure, the capability of producing local medical devices, and the number of healthcare professionals. The healthcare business should shift its goals aligned with the government's goals. Healthcare businesses should be able to adapt to this transformation strategy. Rather than “importing”, businesses also have to strengthen their capability and concern about local components utilization. In 2024, businesses that uphold local component usage will have a higher success level than imports, as the government has stated in the regulation of TKDN “Tingkat Komponen Dalam Negeri” or local component level. 

Also, healthcare businesses gradually start to reinforce the research and development team, either the medical devices or pharmaceutical businesses. For the resilience of medical devices and pharmaceutical manufacturing, the state has also tried to provide holistic clinical testing for medical devices. 

Healthcare businesses that are anticipated to grow in Indonesia include telemedicine and digital health solutions in Indonesia. This is shown by the growth of Halodoc, goapotik, and other online platforms. The government's investment in healthcare infrastructure and pharmaceutical manufacturing and research could lead to opportunities for businesses in building hospitals, clinics, and facilities. This time, the government is pushing the healthcare business to independently produce their medical devices from local components, which leads to raw material production for medical devices and pharmaceuticals. 

Other than that, healthcare supply chain management could improve distribution flow by collaborating with health-tech startups. Since Indonesia consists of many islands, it needs the full support of technology to help them in goods flow and movement. The complexity of the distribution scheme includes all the planes, ships, and trucks, this made digitized distribution system will help communication and simplify the monitoring activities for the moving goods. 

Additionally, Indonesia's natural beauty and cultural attractions could attract medical tourists, elderly care services, health insurance and financing, precision medicine and genetic testing, and mental health services. Thus, with these new trends, new business opportunities will emerge. Entrepreneurs and Medipreneur should be ready for the shift of Indonesian health priorities ahead.

Contributor: Syifa Amirta Sani