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As Southeast Asia’s largest and fastest growing economy, Indonesia needs to prioritise healthcare for its over 275 million citizens to retain its growth momentum. The country’s high maternal and infant mortality rates, for instance, pose a significant challenge if it seeks to reap the benefits of its demographic dividend.
While the government works on multiple fronts to overhaul the healthcare system, private sector participation could prove imperative to plugging gaps and delivering a meaningful impact, finds a report by SALT Ventures and DealStreetAsia. The view is further strengthened by the results of a survey conducted among mothers and pregnant women in tier 1 to tier 4 cities. Cost and distance from the nearest healthcare centre are significant barriers for most in availing services, the survey found.
Private investors have pumped in at least $2.2 billion in the last three years into the country’s healthcare and health technology companies, indicating a growing interest in the segment. With the market projected to grow to $40 billion by 2025, there remains a large opportunity for the private sector to disrupt Indonesia’s healthcare system.