Rupiah Weakens, Raising Indonesia Medical Device Costs, Slowing Demand
Imported raw materials and logistics costs climb, while 70% of ASPAKI product absorption tied to government spending also softens.
The rupiah's weakness is squeezing Indonesia's medical device industry from two sides at once: production costs are rising and demand is falling. Febie Yuriza Poetri, deputy chair of the Indonesian Medical Device Manufacturers Association (ASPAKI), said the domestic medical device industry still relies on imported raw materials, so the rupiah's depreciation is making procurement more expensive. The pressure is compounded by global supply chain disruptions and higher logistics costs amid geopolitical turmoil, including war, which is pushing production costs even higher. On the market side, government budget efficiency measures are also weighing on demand. According to ASPAKI, about 70 percent of medical device product absorption comes from the government, so lower spending is directly hitting sales by domestic producers.