Indonesia Genomic Diagnostics Market Analysis

Indonesia Genomic Diagnostics Market Executive Summary

Indonesia Genomic Diagnostics Market was valued at $195.90 Mn in 2023 and is predicted to grow at a CAGR of 16.5% from 2023 to 2030, to $570.58 Mn by 2030. 

Genomic diagnostics is a rapidly evolving field that uses an individual's genetic information to diagnose diseases, assess predisposition to future health problems, and guide treatment plans by analyzing DNA or RNA for disease-linked variations. This includes karyotyping to examine chromosome abnormalities, targeted mutation analysis for specific disease-related genes, and next-generation sequencing (NGS) for a comprehensive genetic analysis. Applications encompass disease diagnosis, carrier testing for informed family planning, predictive testing for disease risk assessment, and pharmacogenomics for personalized medication treatments. The benefits of genomic diagnostics include early disease detection, personalized medicine, and improved disease management and prognosis.

In Indonesia, chronic non-communicable diseases (NCDs) are on the rise, with hypertension, cardiovascular disease, diabetes mellitus, chronic kidney disease (CKD), asthma, and cancer being the most prevalent. The 2018 Indonesian Basic Health Research (RISKESDAS) reported prevalence rates for these conditions, including hypertension at 4.81% and diabetes at 1.16%. Multimorbidity is common, especially among middle-aged and elderly populations, with hypertension, arthritis, diabetes, and cardiovascular diseases frequently coexisting.

Market is therefore driven by significant factors like prevalence, technological advancements, and government initiatives. However, the innovation-to-commercialization gap, limited incentives, and shortage of skilled professionals restrict the growth and potential of the market.

A prominent player in this field is Illumina, which has partnered with AstraZeneca to leverage genomics and AI for faster drug development by identifying new therapeutic targets and biomarkers, 23andMe acquired Lemonaid Health to enhance its personalized healthcare offerings through telehealth and prescription drug delivery services based on genetic information. Other contributors include Myriad Genetics, and Amgen among others.

Market Dynamics

Market Growth Drivers

Prevalence: The growing awareness of healthcare and the increasing incidence of chronic diseases such as cardiovascular disorders, diabetes, and cancer are driving demand for advanced diagnostic services. With NCDs responsible for 73% of deaths in Indonesia in 2020, including cardiovascular diseases (35%) and cancer (12%), there is a critical need for frequent monitoring and early diagnosis to manage these conditions effectively.

Technological Advancements: Advances in diagnostic techniques and equipment, along with significant investments in healthcare infrastructure, are enhancing diagnostic capabilities across Indonesia. The development of genomics sequencing, particularly since the COVID-19 pandemic, has markedly improved, though it remains in its early stages.

Government Initiatives: Government efforts to improve healthcare access and quality, exemplified by the Biomedical and Genome Science Initiative (BGSi) launched in August 2022, are crucial in accelerating the adoption of genomic technologies and expanding their integration into healthcare systems.

Market Restraints

Innovation-to-Commercialization Gap: There is a significant gap between innovation and commercialization in genomics, with new technologies such as vaccines and drugs often taking 8 to 12 years to reach the market. This lengthy duration challenges the sustainability and impact of new technologies.

Limited Incentives: The genomics sector faces hurdles due to unclear regulatory requirements and a lack of incentives for research and development. Additional challenges include the need for large, diverse study populations due to Indonesia's varied ethnicities and concerns over data security.

Shortage of Skilled Professionals: The shortage of skilled laboratory professionals is a significant constraint, with the ratio of medical doctors to the general population in Indonesia being only 1:1,333. This scarcity hinders the effective utilization of advanced diagnostic technologies and slows market growth.

Regulatory Landscape and Reimbursement Scenario

In Indonesia, the primary regulatory body overseeing healthcare and medical technologies, including genomics, is the Badan Pengawas Obat dan Makanan (BPOM). BPOM is responsible for ensuring the safety, quality, and efficacy of medical products and devices, including genomic tests.

Reimbursement for genomic diagnostics in Indonesia is complex, reflecting the mix of public and private healthcare systems. The Jaminan Kesehatan Nasional (JKN) public health insurance covers a significant portion of the population but offers limited coverage for genomic diagnostics, typically focusing on tests with proven clinical utility. Private health insurance plans vary in their coverage of genomic tests, and many individuals must pay out-of-pocket for these services, which can be a substantial financial burden.

Competitive Landscape

Key Players

Here are some of the major key players in the Indonesia Genomic Diagnostics

• Illumina, Inc.
• Myriad Genetics, Inc.
• Amgen, Inc.
• 23andMe
• AncestryDNA
• Helix OpCo LLC
• F. Hoffmann-La Roche AG
• Abbott Laboratories
• Danaher Corporation
• Bio-Rad Laboratories Inc.