How can technology accelerate the digitisation of the Indonesian healthcare sector?

Jakarta, 2 February 2023 - COVID-19 was the first truly global pandemic in the age of artificial intelligence (AI) and big data. However, when the pandemic struck, the healthcare industry frequently had trouble locating the fundamental data they required to react, be it statistics on sickness and mortality or the accessibility of hospital beds and vital supplies. This experience demonstrates the necessity for future-looking models that are fed by a consistent stream of data as close to real-time as is feasible. A recognition of the power of data analytics to improve care, enhance the patient experience and lower costs is driving a convergence between the tech, health services, pharmaceutical and life sciences industries.

One of the current health problems in Indonesia is fragmented health data due to the many applications and limited regulations in standardisation and data exchange. Based on the current mapping results from the Indonesian Ministry of Health, there are more than 400 health applications developed by the central and regional governments. This condition means health policy still has rooms for optimisation based on fully comprehensive data and makes health services more efficient.

The Indonesian Ministry of Health formulated the 2024 Digital Health Transformation Strategy, a blueprint which is based on the spirit of creating an ‘Indonesia Sehat’ collaboratively with the entire ecosystem of health industry players in a SATUSEHAT platform (Indonesia Health Services). The SATUSEHAT platform is a digital health ecosystem platform that provides data connectivity, analysis, and services to support and integrate various health applications and resources in Indonesia.

Daniel Oscar Baskoro, The COO of Digital Transformation Office at the Indonesian Ministry of Health, stated, “The Ministry of Health of the Republic of Indonesia captured a positive opportunity for health investment. The health expenditure in Indonesia grew 124.5% from 2013 - 2021 with 10.4% compounded annual growth and health spending per capita in Indonesia is constantly growing from $97 in 2015 to $120 in 2019 (23% growth).”

“However, the main challenge was that Indonesia has more than 60.000 healthcare institutions and the Minister of Health released a regulation no. 24 year 2022 on electronic medical records and required all to be integrated with SATUSEHAT. This presented a stellar opportunity for us to use standardisation, integration, and digitalisation.”

To effectively use technology in healthcare, the industry needs systems to interact with one another to provide the data required to make informed decisions about the delivery of care. Digital healthcare is not just about the technologies; it is about new ways of solving healthcare problems, creating unique experiences for patients and accelerating healthcare providers’ growth. Over the longer term, digital healthcare will help system-wide operations and organisations to deliver more powerful healthcare.

Joseph Ho, PwC Strategy& South East Asia Consulting Healthcare Partner, stated, “Indonesia has immense opportunities to improve healthcare infrastructure and medical doctor / specialist supply to both lift the quantity and quality of services and to drive productivity gains. In order to improve hospital beds, infrastructure, and doctor shortages, technology solutions will be important to complement traditional services. This will also be important to help close the gap in serving a geographically spread population - to reach directly to the home or patient across geographical boundaries e.g. concept of a virtual hospital. To mitigate challenges associated with new opportunities, it will be paramount to work out the commercial and operating models to ensure future implementation  success.”

Based on the PwC report “Closing the Health Equity Gap”, four key insights from the COVID-19  experience provide a platform for moving forward. These insights are: 1) data is the first step in understanding where to focus, 2) approaches must be tailored to the community, 3) digital technology is an essential tool, and 4) partnership amplifies the impact.

Dr. Zubin Daruwalla, PwC Singapore Health Industries Leader, added, “The one most important lesson? That you can do it. Even though Indonesia has a large population spread across a vast geography with a not too strong payor market, we are seeing many solutions that are making healthcare affordable and accessible to households and provide them quality care. However, for success, collaboration will be a key. Not just within the public and private sectors but more importantly, between them.”

The need for healthcare enterprises to transform is increased by newer, non-industry entrants into this economy, which account for 10% to roughly 20% of GDP in industrialised nations. Technology companies have a role to play in this. Around the world and in Indonesia, changes in this new health economy are already becoming apparent. We must enhance the functioning of the entire digital healthcare system and implement stronger healthcare initiatives.

Meita Laimanto, PwC Indonesia Risk Assurance Partner, added, “The pandemic has spurred amazing advancement in the healthcare industry, particularly in the area of digital health or digital healthcare. An interdisciplinary notion called "digital healthcare" incorporates ideas from the areas where technology and healthcare converge. The digital requirements expected by health policy or by consumers and other stakeholders must be addressed by today's health providers in addition to their current technology demands and objectives.”

Aristo Setiawidjaja, PT Medikaloka Hermina Tbk Managing Director, added, “The role of digital players will surely help because digital and technology will improve the productivity of doctors and increase access. And as healthcare providers, we embrace technology and digitisation across. So I do believe, since it is still in the early stage, and the increasing demand, this situation will stay for 10-20 years and still have a long journey.”