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Indonesia Revamps e-Catalogue Procurement System
Published on: March 12th, 2022
Updated on: April 11th, 2022
Indonesia Announces Open Enrollment for E-Catalogue Procurement System
On April 7th the Ministry of Health announced a new e-Catalogue open enrollment policy whereby applications can be submitted for any medical device type on any business day. Applications are now accepted upon submission with on-line publication the same or next day. There will be no advanced verification of application documents. However, application documents are subject to review post publication, and subject to de-listings if anything is found to be incorrect.
A major rework of the e-Catalogue system was just implemented in February of 2022 (see associated article here). While the software platform itself seems to be struggling to keep up with increased demand for new listings with frequent “suspension of service” reports, the Ministry of Health has been tweaking the enrollment policies. The latest being the third and most liberal in the past 8 weeks.
Review of New Treatment of Medical Devices on E-Catalogue
On February 11th, the Indonesia government implemented significant structural and procedural changes to the medical device sector of the procurement system known as e-Catalogue (KN.01.04/3/630/2022). The changes go a long way to increasing ease of access and should be welcomed by hospitals, healthcare works and medical device manufacturers.
Summary of Changes:
- E-Catalogue pricing determined solely by manufacturer
- Increase the number of device categories that can apply
- Increase the length of time the application window is open
- Application simplification
- Decreases categorization discrepancies with Import License
Perhaps the most significant change is that manufacturers or their local agents are now able to set their own product price in the e-Catalogue. Previously, pricing was set through negotiations with the LKPP or MOH which restricted the price to a controlled markup from landed cost. Elimination of the price negotiation meeting gives full price control to the manufacturer; and is a key element to getting more products on the system faster. In fact, in a speech on February 11th, the Minister of Health set a target of 20,000 products to be included in the e-catalog by June 2022 in support of presidential reformations.
Product categories specified for 2022 enrollment has been expanded to 1,482 types of medical devices. The enrollment window will be open from February 11th to November 2nd, 2022 and once listed, manufacturers can update their listing, including the price, daily. Listing changes will be automatically approved and should the MOH find the product’s documentation to be incorrect, the item(s) in question may be frozen.
Structurally, medical device listing in e-Catalogue will be moved to a new Healthcare Sector administration of which will be done by the Ministry of Health. Sectorial administration comes with a simplify application process. Importantly, the requirement for any documents to be Authenticated by the Indonesian Embassy in the country of origin has been eliminated. This will significantly reduce the time for application preparation. Also, with application review by Ministry of Health staff, and no longer by the Indonesian Government Goods and Services Procurement Organization (LKPP), discrepancies between product categorization between the Import License and c-Catalogue application will be eliminated.
Access to the Healthcare Sector is still done via the existing e-catalog portal (https://e-katalog.lkpp.go.id), but now there are options to access ‘national’, as well as new ‘sectoral’ and ‘local’ sub-sties. Any medical devices currently listed on e-Catalogue irrespective of these changes.
What is the e-Catalogue?
Indonesia’s e-Catalogue is a central purchasing portal used by all government organizations to purchase goods. Initiated in 2013, the system was established to bring transparency and prevent corruption in the government procurement sector, including public hospitals. It took parties some time to understand the implications on sales and at first international and local companies seemed weary to participate in the voluntary system. Eventually, the benefits of listing in the e-Catalogue became obvious and there was a rush on listings, creating delays during the short annual enrollment windows.
It will be important for manufacturers to develop and implement an optimal e-catalogue pricing strategy.
Enrolling in the e-Catalogue and Developing a Strategy
Under the new process, enrolling in the e-Catalogue will be easier than ever for manufacturers. MOH not only removed the price negotiation step but has also extended the enrollment window to almost 9 months. Manufacturers will need to work with their local partner to submit the necessary documents which includes the company deed, the medical devices license (AKL), and more.
It will also be important for manufacturers to develop and implement an e-catalogue pricing strategy. Manufacturers still have a month or two before all products have been moved over to the Sectoral catalogue but once this has been completed, manufacturers and their partners will be able to update daily if they want. Prices will be non-negotiable and products will be sold at the listed price. This varies from the similar system in Vietnam where prices can be negotiated down from the listed price but since hospitals are required to publish the final price publicly, everyone is still able to see the final price.
To learn more about the Indonesia e-Catalogue system, please see our landing page here.
Come Grow With Us
Asia Actual works closely with clients to optimize pricing and obtain the fastest e-Catalogue listing for your devices. Contact Asia Actual to see if our Indonesia e-Catalogue Strategy and Registration services are right for your business. Asia Actual has offices staffed by experienced, bilingual regulatory and commercial professionals in the major capital cities of Asia including Jakarta.