80% of Raw Materials Imported: Medical Device Business Threatened by Rupiah Weakening

Disruptions in the global supply chain due to geopolitical tensions, which have also contributed to the weakening of the rupiah exchange rate, pose a challenge for the medical device and laboratory business. Deputy Chairman I of Gakeslab Indonesia, Ary Gunawan, stated that 60-80% of the raw materials for Indonesia’s healthcare industry are imported, so when the rupiah weakens, the impact on performance and business sustainability will be significant. Currently, the medical device industry is still relying on old stock, but if this situation continues, production costs and operational burdens will increase. Consequently, price increases for medical devices, medicines, and laboratory services cannot be avoided, and the cost of medical care will also rise. Business players are hoping for government support in developing the domestic medical device and diagnostic industry by promoting the Domestic Component Level (TKDN) to spur the advancement of local products. One of the factors needed to attract investment and technology from abroad is regulatory certainty and a stable investment climate.