VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian Industry Ministry is committed to realizing independence in the health sector. The strategic moves will include the 35% import substitution policy by  2022. This policy was supported by the National Product Use Increase (P3DN) program. Minister of Industry, Agus Gumiwang in a press conference about the Health Equipment National Product Use on Tuesday (15/6) said that his side had encouraged the pharmaceutical and medical equipment industries in Indonesia to increase their productivity.

To strengthen the domestic industry while reducing import dependence, Minister Agus stated that he also encourages the optimization of local content rate (TKDN); namely by changing the local content rate calculation in each sector. Take for instance, the pharmaceutical sector which previously used to be a cost-based method has been replaced with a process-based one. After the change, the local content rate rose by 15 percent.

For medical equipment, the Industry Ministry will adjust the local content rate calculation. Currently, its local content rate is still cost-based, including the working equipment, working capital, and manpower. It will be adjusted with full costing, a combination among the bases of cost, design, logistics, and research as well as development.

Meanwhile, in the Industry Ministry Strategic Plan of 2020-2024, the average local content rate target by 2024 was set on 53 percent from the 2020 baseline with 49 percent. The target increase is set at around 2 percent year on year.

Minister Agus Gumiwang added there are 79 domestic health equipment priority products to be used in the National Budget on health equipment. Some of the products' local content rates have surpassed 40 percent; namely these domestic products are obligatory for purchase while the import product is banned. These products include nasal oxygen cannula, medical lighting, syringe, emergency trolley, medical table and chair, surgery table, orthopedic implant, surgery instruments, urine bag, and general purpose disinfectant.