RI Partners with Philips, Panasonic to Localize High-Tech Medical Gear

RRI.CO.ID, Jakarta - The Indonesian Ministry of Health has taken a major step toward strengthening national healthcare autonomy through a high-level technology transfer agreement with global firms Philips and Panasonic Healthcare Indonesia, alongside local partner Graha Teknomedika.

The collaboration is designed to reduce Indonesia’s dependence on imported medical devices by localizing the production of advanced diagnostic equipment.

At present, around 80 percent of high-tech medical devices used in Indonesian hospitals are imported, despite the country’s ability to produce 80 percent of its low- to medium-tech needs domestically.

Director General of Pharmacy and Medical Devices Lucia Rizka Andalusia stressed that building an “end-to-end” domestic supply chain is crucial to avoid shortages during global crises such as pandemics.

“There will be no gaps or shortages. And, importantly, we support the Ministry of Investment and Downstream Development’s program to encourage investment in Indonesia,” Rizka said in Jakarta on Monday, January 26, 2026, as quoted by Antara.

She added that genuine investment is not only about financial figures but also about value-added benefits, including skill transfer to the local workforce.

The initial phase of the technology transfer will focus on two essential products: ultrasound machines and patient monitors. However, Rizka expressed hope that Philips would eventually localize production of more advanced equipment, including CT scanners, cardiac catheterization laboratories, and MRI machines.

By producing these devices domestically, Indonesia aims to achieve a Domestic Component Level (TKDN) of more than 50 percent. This shift is expected to lower healthcare costs while creating opportunities for highly skilled local workers in specialized manufacturing.

The Ministry of Investment and Downstream Development is supporting the initiative by streamlining permits and facilitating negotiations between international and local partners. Deputy Minister for Investment Promotion Nurul Ichwan emphasized that domestic production is key to building healthcare resilience and sustainability.

“We strongly encourage companies with good intentions to meet their local content requirements (TKDN), ensuring the resilience and sustainability of high-tech equipment for patients in Indonesia,” Ichwan said. He added that the move is expected to boost public confidence in the national healthcare system. ***