An important consideration to sales success in Indonesia is the e-Catalogue listing. This on-line procurement system was established to bring transparency and prevent corruption in government purchases, including public hospitals, as initiated by the Indonesian Government Goods and Services Procurement Organization (LKPP) and now administered by the Ministry of Health.
Although initiated in 2013, it took parties some time to understand the implication on sales. At first, companies were weary to participate in the voluntary system. However, when it became clear that those that did participate were enjoying strong sales growth, there was a rush of new applicants causing early admission delays.
After an Import License for a device is issued, the License Holder can apply to the Ministry of Health for an e-Catalogue listing meeting at which the listing price will be negotiated. A required element for the meeting is a commercial invoice from at least one device shipment to Indonesia. Price negotiations are for a percentage mark-up from the invoiced landed cost typically between 25% to 35%. There is no government application fee for the e-Catalogue application process, but the queue can be 6 months or longer for the price negotiation meeting.
Implementing an optimal pricing strategy will be critical to successful public hospital sales. The e-Catalogue system also increases the importance of independent license holding in Indonesia because there is little room for regional dealer margin under the price scheme.
Asia Actual works closely with clients to optimize pricing and obtain the fastest e-Catalogue listing for your devices.