Rupiah Slump and Global Turmoil Squeeze Indonesia's Medical Device Industry

The weakening Rupiah and global supply chain disruptions are putting significant pressure on Indonesia’s medical device industry. Febie Yuriza Poetri, Vice Chair of the Indonesian Medical Device Manufacturers Association (ASPAKI), explained that the sector is facing a dual shock from both the supply and demand sides.

On the supply side, the depreciation of the Rupiah has made imported raw materials, which the industry heavily relies on, increasingly expensive. This is compounded by rising logistics costs driven by ongoing geopolitical conflicts.

On the demand side, government budget efficiency policies have led to a decline in orders. This is particularly impactful as approximately 70% of the products manufactured by ASPAKI members are absorbed by government procurement. The combination of soaring production costs and falling demand is creating a major test for the resilience of the domestic medical device business.