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Medical device firms raise concerns over centralized procurement

Industry representatives stated that fiscal pressures have narrowed spending capacity among regional governments, particularly for healthcare services and medical equipment procurement.

Maudey Khalisha (The Jakarta Post)
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Sun, June 21, 2026 Published on Jun. 19, 2026 Published on 2026-06-19T16:18:14+07:00

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A medical professional is using TeleCTG device on a pregnant woman's stomach in Kupang, East Nusa Tenggara, on Nov. 17, 2018. A medical professional is using TeleCTG device on a pregnant woman's stomach in Kupang, East Nusa Tenggara, on Nov. 17, 2018. (Courtesy of TeleCTG/-)

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ocal medical device businesses have called for improvements to healthcare procurement governance, arguing that purchasing decisions should prioritize not only budget efficiency but also product quality, patient safety and the long-term sustainability of domestic manufacturers.

Indonesian Medical Devices and Laboratory Companies Association (Gakeslab Indonesia) chairman Kartono Dwidjosewojo said distribution played a critical role in ensuring the availability of quality medical devices across the archipelago.

“Distribution is not merely part of the supply chain, but an essential element in ensuring medical devices reach communities safely, on time and in accordance with applicable quality standards,” he said on Thursday during Health Ecosystem Week 2026 discussion at Sebelas Maret University in Central Java, as quoted by Tempo. 

Industry representatives also raised concerns about fiscal pressures that have narrowed spending capacity among regional governments, particularly for healthcare services and medical equipment procurement.

They argued that fiscal policies and procurement mechanisms should be continuously evaluated to support equitable healthcare access, while also stimulating regional economic growth.

Since last year, President Prabowo Subianto implemented austerity measures by cutting transfers to regional governments to fund his priority programs, such as the free nutritious meal program and the Red and White Cooperatives, both of which are controlled by the central government.

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