Mapping Indonesia’s key healthtech players

The Indonesian healthcare industry is alive and kicking. In 2021 alone, for instance, the domestic market was valued at US$41.8 billion.

The pharmaceutical segment is particularly promising as it’s set to grow by over 10% to reach a value of US$11.6 billion in 2025. In fact, all healthcare subsectors have shown fairly steady gross domestic product (GDP) growth in recent years.

This marks an array of opportunities for fledgling, tech-enabled firms to grow and prosper in Indonesia. To fully capture these opportunities, startups need to bridge multiple gaps and offer a variety of related services simultaneously.

For example, a startup may act as an online-to-offline (O2O) platform, offering doctor-booking and medical consultation services as well as creating health insurance bundles and delivery channels for routine drugs.

Implementing a holistic business strategy is especially vital as multiple functions exist in the healthtech sector, including:

• Insurance service providers
• Pharmaceuticals
• Herbal medicine manufacturers
• Medical device makers

Combinations of these verticals have given rise to various healthtech models in Indonesia’s startup space, including e-pharmacies, teleconsultation providers, and enterprise resource planning (ERP) systems for hospitals and clinics.

Based on Tech in Asia‘s funding data, Halodoc and Alodokter are the country’s two largest O2O health service players. Halodoc has raised US$158 million from backers such as Gojek, Temasek, Astra, Telkomsel, and Singtel. Meanwhile, Alodokter received investor support from SoftBank and has secured a total of US$48.1 million from various investors to date.

See also: Temasek-backed Halodoc enabled sale of restricted drugs

Halodoc​​ and Alodokter reportedly have over 20 million monthly active users each.