Indonesia’s medical device market, valued at US$7.6 billion in 2025, is projected to reach US$11 billion by 2030, according to a new Roland Berger report. The regulatory shift follows the COVID-19 pandemic, which exposed the risks of a market that imported over 90% of its medical devices. In response, the government elevated domestic production to a national priority and made local content compliance a primary criterion in public procurement.
Roland Berger’s report, “Indonesia’s Medical Device Market at a Crossroads: What TKDN Regulation Demands from MNCs,” finds that international manufacturers cannot capture growth in Indonesia’s public healthcare market through distribution alone.
The report shows that the conventional model, in which a local distributor imports, labels and sells foreign-made products, carries a structural ceiling of 20% under TKDN (Tingkat Komponen Dalam Negeri, or Local Content Requirement), falling short of the 25% minimum required for public procurement eligibility. With approximately 64% of the market public-sector driven and national health insurance (BPJS) now covering virtually the entire population, the shortfall puts access to the country’s largest buyer at stake.
According to the report, under Presidential Regulation No. 46/2025, procurement priority is determined by a combined score of TKDN and BMP (Bobot Manfaat Perusahaan, or Corporate Contribution Index). BMP measures a company’s broader economic contribution, including investment scale in Indonesia, local employment and workforce training, use of Indonesian suppliers and partners, and after-sales service infrastructure. It can add up to approximately 15 points.
“TKDN regulations have fundamentally transformed the Indonesian market. Whether companies are considering entering the market or are already established there, this is the biggest opportunity yet, and the key to success boils down to ‘acting quickly’,” said Yoshihiro Suwa, Senior Partner, Head of Healthcare Asia, Roland Berger.
From distribution to localisation
The report finds that reaching the 25% threshold requires manufacturers to extend localisation into raw material sourcing and, further still, into design and R&D. This calls for a partner with genuine manufacturing capability, design capacity and local supplier networks—a fundamentally different profile from the conventional medical device distributor.
Roland Berger recommends a two-fold strategy: first secure TKDN of 25% or above to qualify for procurement, then reach a combined TKDN and BMP score of 40% or above to enter the priority tier. While BMP serves as a useful supplement, allowing a manufacturer with TKDN of 30–35% to cross the 40% mark, it cannot substitute for a structurally low TKDN score. As the report suggests, localisation strategy must be built backwards from TKDN.
Industry leaders have a head start
Several global leaders have already moved. GE HealthCare partnered with Forsta, a manufacturing subsidiary of Kalbe Farma, Indonesia’s largest pharmaceutical group, to launch the country’s first domestic CT scanner production facility in 2025.
Backed by a manufacturing commitment of approximately IDR26 billion, the initiative achieved a TKDN score above 40% and secured eligibility for the government’s e-Katalog, positioning GE HealthCare to compete for the SIHREN programme’s planned procurement of over 320 CT scanners between 2022 and 2027.
In 2026, Philips announced a partnership with PHC Indonesia to establish a manufacturing facility in Batam for ultrasound and patient monitoring equipment, which the report describes as the most comprehensive localisation model yet seen in the market.
A narrowing window of opportunity
The report cautions that the window is open, but not for long. GE HealthCare required approximately two years from partner selection to operational production readiness, with Mindray and GTM following a comparable timeline. Because manufacturing OEM agreements typically run five to ten years, a partner secured by a competitor is, in practical terms, no longer available.
The report estimates that manufacturers beginning the process now can bring their first locally produced product to market in 2027 or 2028, while those that delay are unlikely to see that opportunity before 2030. Government relationships, e-Katalog registration, hospital-level clinical experience and distributor trust are built incrementally and are difficult to replicate quickly.
