Indonesia Radiology Service Market Analysis

Indonesia Radiology Service Market Executive Summary

The Indonesia Radiology Service market is at around $24 Mn in 2023 and is projected to reach $62.7 Mn in 2030, exhibiting a CAGR of 14.7% during the forecast period.

There are many techniques used in radiology. MRI (Magnetic Resonance Imaging) scan is a powerful imaging technique that uses magnets instead of radiation to create images of the body. It is excellent for visualizing soft tissues like the brain, muscles, and organs. Areas investigated through MRI scanning include spinal cord and brain abnormalities, cysts and tumors, joint injuries, breast tissue anomalies, and abdominal and liver irregularities. Radiography is a type of radiological imaging technique which applies X-ray radiation. X-ray mammograph is also a type of radiological imaging technique which is used specifically to identify abnormalities or lesions in the human breast. MRA (Magnetic Resonance Angiogram) scan is an examination that produces detailed versions of the blood vessels in the body. Compared to X-rays, CT (Computed Tomography) uses a low dose of radiation and also provides a better overview of the interior of the body. An ultrasound or sonography is a technique that uses high frequency ways to produce images. As it does not involve the use of radiation it is the most widely used technique for monitoring pregnancy. A Positron Emission Tomography (PET) scan is an advanced technique used to reveal the metabolic or biochemical functions of tissues and organs. Lastly, a Single-Photo Emission Computerized Tomography (SPECT) uses a radioactive substance and a special camera to create 3-D images.

Indonesia faces a significant challenge in managing the burden of chronic diseases on its healthcare system, which has directly led to increased rates of morbidity and mortality in the country. The Indonesia Radiology Service Market is thus driven by significant factors such as the increasing burden of chronic diseases, aging population, and healthcare infrastructure development. However, high cost, radiation exposure concerns, and shortage of radiologists restrict the growth and potential of the market.

The major players of the Indonesia Radiology Service Market are Rumah Sakit Cipto Mangunkusumo (RSCM), Rumah Sakit Pondok Indah, Rumah Sakit Siloam, Rumah Sakit Mitra Keluarga, and Rumah Sakit Pusat Pertamina (RSPP), among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: In Indonesia, NCDs are responsible for 73% of deaths in Indonesia and the proportions are: cardiovascular disease (35%), cancer (12%), chronic respiratory diseases (6%), diabetes (6%). Radiology services play a critical role in the diagnosis and monitoring of these medical conditions which allows for better chronic managements. Moreover, Radiology Service helps prevents potential complications and leads to long-term health outcomes. Due to the significant role of radiology services in chronic disease treatment, the Radiology Service Market is at its full potential growth.

Aging Population: As of 2022, Indonesia’s senior population comprised of 19 Mn elderly citizens. This geriatric population is more susceptible to chronic health conditions such as diabetes, heart disease, and chronic kidney disease, compared to the younger population and adults. Radiology services help with effective disease management of the patients. Overall, the aging population increases the demand for radiology services, which contributes to the growth of the Radiology Service Market.

Healthcare Infrastructure Development: Indonesia is considered an emerging or developing country which is investing in upgrading its healthcare facilities and infrastructure to meet the rising demand for the medical services, including diagnostic imaging. Diagnostic imaging services help cater to the needs of the patients in every stage, from disease diagnosis up until treatment evaluation. The role of radiology is indispensable in the healthcare field, due to which the market grows.

Market Restraints

High Cost: Radiology is costly as it requires expensive equipment, such as MRI, CT, and PET scanners, which can cost millions of dollars each. Additionally, maintaining and operating these machines demands significant financial investment in terms of regular maintenance, software updates, and the need for specialized technical staff. These factors make radiology services one of the costliest in the medical sector, ultimately affecting the growth of Radiology Service Market.

Radiation exposure concerns: Even though the benefits of the radiology services exceed the risks, there remain certain concerns regarding radiation exposure during the scanning. The concerns of exposure include skin burns, loss of hair, and increased incidence of cancer. Despite the fact that there is no evidence of definite relationships that due to the radiation exposure, there has been increased incidence of cancer, people resist radiology. The resistance from patients can thus negatively affect the growth of the market.

Shortage of Radiologists: In Indonesia, with only 2161 registered radiologists across nations, the ratio is 1.2 per 100000 individuals; thus, the demand for radiological services often exceeds the available manpower. As supported by this statement, Indonesia does not have a sufficient number of radiologists for the population of 277 Mn. Thus, due to the insufficient supply of the radiologists, demand decreases, and the Radiology Service Market growth suffers.

Regulatory Landscape and Reimbursement Scenario

In Indonesia, the regulatory agency is called the National Agency of Drug and Food Control (NADFC), also known by its Indonesian name, Badan Pengawas Obat dan Makanan (BPOM) which operates under the Ministry of Health. It plays a critical role in ensuring the safety, efficacy, and quality of pharmaceuticals available in the nation.

The NADFC conducts detailed review and analysis of the applications from pharmaceutical companies to register and market the new drugs. It includes a thorough evaluation of the safety, efficacy, and quality of pharmaceutical products. After the NADFC is ensured of these characteristics, does it allow the drugs to be marketed. The NADFC is also responsible for post-marketing surveillance of the drugs in case of any reporting of adverse drug reactions.

Indonesia’s healthcare reimbursement system is a complex mix of public and private insurance schemes. The mandated national health insurance scheme in Indonesia is called Jaminan Kesehatan Nasional (JKN), or National Health Insurance. It attempts to give access to basic healthcare and covers a sizable section of the populace. The JKN reimburses healthcare costs for outpatient and inpatient services at the designated healthcare facilities. For the private sector, compared to the JKN, private health insurance plans may provide greater coverage and better reimbursement rates.

Competitive Landscape

Key Players

Here are some of the major key players in the Indonesia Radiology Service Market:

• Rumah Sakit Cipto Mangunkusumo (RSCM)
• Rumah Sakit Pondok Indah
• Rumah Sakit Siloam
• Rumah Sakit Mitra Keluarga
• Rumah Sakit Pusat Pertamina (RSPP)
• Rumah Sakit Dr. Sardjito
• Rumah Sakit Umum Daerah (RSUD) Dr. Soetomo
• Rumah Sakit Hasan Sadikin
• Ruman Sakit Abdi Waluyo
• Rumah Sakit Umum Pusat (RSUP) Adam Malik
• Rumah Sakit Umum Pusat (RSUP) Sanglah