What’s next in Indonesia’s healthcare landscape: Digital transformation, preventive care, and early detection

The Indonesian healthcare landscape has improved significantly in the past decade. It has strengthened access to funding through the successful rollout of the BPJS Kesehatan, or universal healthcare, and the successful reforms implemented through the Omnibus Law that we will see in the coming years.

At the East Ventures Summit 2024, we had the honor of having Mr. Budi Gunadi Sadikin, Minister of Health of the Republic of Indonesia, share his opening speech. In his remarks, Mr. Budi highlighted that the healthcare sector is promising and highly abundant, and investors are invited to capitalize on this. 

The demographic bonus is expected to peak in the next 10 to 20 years from now, presenting a unique window for growth and opportunities. The current advantageous investment climate in Indonesia notes that high interest rates elsewhere have led to attractive, lower prices for investors, exposing a market that is posed for expansion.

Mr. Budi also highlighted specific focuses on digital health and biotechnology, including the development of comprehensive clinical and genomic databases. The sector is set for transformative advancements and substantial investment returns.

Watch his full speech below.

Supportive healthcare regulatory framework to nurture innovations

After the COVID-19 crisis throughout 2020-2021, World Health Organization (WHO) data shows that 74% of deaths per annum are caused by non-communicable diseases (NCDs), which include heart diseases, stroke, cancer, diabetes, and chronic lung diseases.

Mushrooming NCDs in the nation also highlights the urgency of healthcare priorities and regulations by the Ministry of Health. 

Prof. dr. Dante Saksono Harbuwono Sp. PD-KEMD., Ph.D, Vice Minister of Health of the Republic of Indonesia, shares the six pillars of health in the Ministry of Health: Primary Care Transformation, Secondary Care Transformation, Health System Resilience and Information, Health Financing Transformation, Health Talent Transformation, and Health Technology Transformation.

These pillars are pivotal in strengthening the bridge between the public and private sectors, which Mr. Budi also urged previously.

Shifting focus toward preventive care

Moving forward, the Minister also encourages spending and investing more in preventive actions and promoting healthy lifestyles and well-being. These actions are focused on being proactive and preventive to keep people healthy.

In accordance with that, three East Ventures-backed startups focusing on preventive care and chronic disease management, NalaGenetics, Mesh Bio, and Aevice Health, address different branch diseases with their unique innovations and preventive measures which also drive the digital transformation in the region.

Singapore’s Aevice Health, which focuses on chronic obstructive pulmonary disease (COPD), is reducing hospital readmission processes and costs through AeviceMD, a wearable stethoscope that monitors patients’ respiratory conditions in the comfort of their homes. 

Also based in Singapore, Mesh Bio is creating the world’s first clinically validated ‘digital twin,’ which models the patient’s biological health states using all available clinical data. It aims to predict whether a patient will develop chronic kidney disease with the highest accuracy to date.

Meanwhile, focusing on genetics, NalaGenetics offers advanced genetic testing for complex chronic diseases including cancer, cardiometabolic, and neurodegenerative conditions.

Check out how these companies support preventive care in Southeast Asia.

Democratizing cancer diagnostics and early detection

Every 22 September, the world commemorates the Welfare of Cancer Patients Day, also widely known as World Rose Day, and remembers 12-year-old Melinda Rose, who suffered from cancer and passed in 1996. Indonesia is on an ongoing journey to eliminate cancer – a journey that would not be possible without the contributions of local innovation and investment to par with global standards.

The third panel also underscores the importance of cancer awareness and education. The founders of Nusantics and PathGen gave their nuance on early detection, prevention, and finding effective cancer treatments. 

Bonanza Perwira Taihitu, Director of the Centre for Global Health and Technology Policy at the Ministry of Health of the Republic of Indonesia, who moderated the panel, mentioned how cervical cancer has become the second most common ‘killer’ for women in Indonesia. 

In line with that, Indonesia-based Nusantics is developing domestic screening tests for cervical cancer, including innovative methods to improve accessibility and reduce costs. 

Meanwhile, PathGen endeavors to provide affordable molecular diagnostics for cancer in resource-limited settings. The company also conducts cancer research and diagnostics to achieve a cancer-free Indonesia, so we will not lose another Rose.

Learn more about how the two companies develop early detection for cancer disease on this panel below.

East Ventures’ commitment to the sector and what lies ahead

With the launch of the Indonesia PASTI BISA (IDPB) program in 2020, East Ventures has been agile in supporting the nation’s healthcare system and its efforts to combat the COVID-19 pandemic through test-kits development, as well as personal protective equipment (PPE) and oxygen concentrators distribution across the country.

East Ventures has also taken part in supporting the journey of genomics development in Indonesia. Starting with the donation to the Biomedical & Genome Science Initiative (BGSi), an initiative of Indonesia’s Ministry of Health to provide precision medicine services for the community in August 2022 and provide sequencing needs in the form of reagents and consumables worth more than Rp1 billion.

Moreover, East Ventures also launched a white paper “Genomics: Leapfrogging into the Indonesian healthcare future” in collaboration with the Indonesian Ministry of Health to provide a comprehensive understanding of how genomics can improve the healthcare system in Indonesia.

In 2023, East Ventures announced its first healthcare-focused fund, amounting to US$30 million, dedicated to supporting innovative healthcare solutions in Indonesia. 

In addition to that, East Ventures collaborated with the Indonesian Ministry of Health of the Republic of Indonesia for the Health Innovation Sprint Accelerator (HISA) 2023, an incubation program for digital health innovators in the fields of health tech and biotech by Digital Transformation Office of the Ministry of Health. 

Since then and through other healthcare-related endeavors, East Ventures has functioned as a bridge between the private sector funding and the public. Looking ahead, East Ventures is beyond eager to continuously support digital transformation in healthcare and reshape the industry for more generations to come.

To date, East Ventures has also been listed as the most active healthcare investor in Indonesia by Tech in Asia since 2017.

If you are a startup founder building in the healthcare sector, send your pitch here.