Indonesia's IVD industry strengthens expansion, eyes role as Southeast Asia's manufacturing base

Indonesia's in vitro diagnostics (IVD) industry is adapting its business strategies to navigate a landscape of reduced government health spending and global economic uncertainty. Companies are now prioritizing expansion into the private sector and boosting export activities to sustain growth.

Kurniasari Endah, Associate Commercial Director at PT Virtue Diagnostics Indonesia, noted the challenges of entering the Indonesian market in 2024, including market difficulties and the need to build trust in local IVD products against established global brands. The company is now focusing its efforts on hospitals, private clinics, and healthcare facilities as key areas for new growth.

“

We realize that entering the Indonesian market in 2024 was not an easy journey. Besides facing challenging market conditions, we also had to build trust in local IVD products amidst the dominance of global brands that have been present for decades.

This strategic shift is yielding results. Virtue Diagnostics Indonesia has manufactured over 150 diagnostic instruments and 31,000 reagent kits for use in various Indonesian healthcare settings by mid-2026. The company has also secured ISO 13485 certification for its quality management system and has begun exporting its VIRTUEDX reagents and VERCENTRA diagnostic instruments to the Philippines.

Johnson Zhang, Founder and Global CEO of Virtue Diagnostics, believes Indonesia holds significant potential as a Southeast Asian IVD manufacturing hub. He stressed that realizing this potential requires strong synergy between the government and the industry, supported by policies that encourage long-term investment. Virtue Diagnostics operates a 12,200 square meter manufacturing facility in Cikarang, capable of producing over 1,000 diagnostic instruments annually and 6,000 liters of reagents daily. The company holds distribution permits for 193 diagnostic products in Indonesia, many with a domestic component level (TKDN) exceeding 40 percent. Future plans include increased investment in research and development, expanding production capacity, and strengthening distribution networks both domestically and internationally.

“

Indonesia has great potential to become an IVD manufacturing center in Southeast Asia. To realize this, synergy between the government and industry is needed through policies that support long-term investment.