Industry Questions New Governance for Medical Device Procurement
National medical device associations have highlighted concerns over the current new procurement governance, which they believe could potentially disrupt the independence of the domestic industry and impact patient safety. They also assess that a number of new fiscal policies and business regulations are adding to operational burdens. The statement emerged during a press conference held by the Indonesian Health Laboratory Companies Association (Gakeslab Indonesia), the Indonesian Medical Device Manufacturers Association (ASPAKI), the Indonesian Medical Gas Industry Association (AIGMI), and the Indonesian Medical Device Developers and Providers Association (HIPELKI) at Sebelas Maret University (UNS) in Solo, Central Java, on Thursday, 18 June 2026. The event was part of the Health Ecosystem Week series held at the UNS Faculty of Engineering Campus in Solo on Thursday, 18 June 2026.
The associations assess that centralised procurement policies are reducing the participation of local businesses. They state the impact is visible in the declining economic multiplier effect in the regions and the disparity in business opportunities between areas. A more rigid bureaucratic system is also said to slow the response to healthcare service needs in the regions.
Additionally, the national fiscal pressure occurring since 2025 is another major concern. They assess that cuts to regional transfer funds and the centralisation of procurement have narrowed the fiscal space for regional governments and slowed economic turnover in the areas. This condition is said to make regions increasingly dependent on central government policy for the procurement of goods and services, including medical devices.
On the other hand, economic conditions still under pressure due to the weakening rupiah, rising logistics costs, and raw material prices are said to be worsening the situation for the medical device industry. The associations assess that these pressures directly affect production and distribution costs in the health sector.
Another sticking point is the increased burden of business regulations and taxation in 2026. Rules such as the tightening of MSME taxes, mandatory business legality reporting, changes to tax restitution mechanisms, KBLI adjustments, and industrial licensing reform are considered to add to the compliance burden for businesses. “Businesses must bear many regulatory adjustments amidst unstable economic conditions,” said HIPELKI Chairman Randy H. Teguh.
HIPELKI also assesses that the tax restitution policy could potentially disrupt company cash flow. According to them, the increasingly strict restitution process means funds that were previously part of capital turnover are not easily disbursed. This condition is considered to impact the company’s ability to maintain financial stability.
Another highlight is the product listing process on the LKPP E-Catalogue version 6.0. The associations state that administrative curation, which can take up to six months, is a barrier for businesses wanting to participate in procurement through the mini-competition mechanism. This is considered to limit industry players’ access to government procurement.
They also criticise the procurement system, which is deemed too oriented towards the lowest price. According to the associations, this approach does not fully consider aspects of quality, product safety, after-sales capability, and the risk of provider failure. “Efficiency is important, but patient safety and service quality must not be ignored,” said ASPAKI Chairman Imam Subagyo.
ASPAKI requests the government provide consistent support for the national medical device industry, including incentives for raw materials, components, and production machinery. They assess this support is important to maintain the industry’s independence, which has grown since the Covid-19 pandemic.
Meanwhile, Gakeslab Indonesia asserts that medical device distribution is a crucial element in ensuring optimal healthcare services. They assess that distribution is not merely an additional cost, but a key factor so that quality medical devices can reach all regions of Indonesia. “The distribution channel is a critical driver in maintaining patient safety,” said Gakeslab Indonesia Chairman Raden Kartono Dwidjosewojo.
AIGMI highlighted budget limitations post-procurement of medical devices, particularly for installation, calibration, and maintenance. They assess this condition still occurs in a number of hospitals, including the use of oxygen cylinders in ICU and emergency rooms due to the lack of an adequate medical gas installation system. “We hope the government ensures adequate budgets for the installation and maintenance of medical devices post-purchase,” said AIGMI Chairman Deviatri Syam.