In the ever-expanding global healthcare market, Indonesia is emerging as a pivotal player, offering a world of opportunities for medical device manufacturers and distributors. Yet, to successfully penetrate this promising market, an intimate understanding of Indonesia's unique and complex regulatory environment is vital. This comprehensive guide aims to examine the intricacies of Indonesia's medical device regulations and illuminate how PCI, a distinguished electronics manufacturer, can assist businesses in working with the relevant authority to navigate this complex landscape.

Understanding the Indonesian Regulatory Landscape

Indonesia's medical device market is controlled by a trio of major regulations: The AKD (Alat Kesehatan Dalam Negeri), the TKDN (Tingkat Komponen Dalam Negeri), and the Ministry of Health Regulation No. 62/2017. Let's delve deeper into these regulations to better grasp their importance and implications.

1. The Role and Importance of AKD

The distribution licence for domestic medical devices, known as AKD, is a key requirement for any business intending to distribute medical devices in Indonesia. AKD is issued by Indonesia's food and drug regulatory agency (Badan Pengawas Obat Dan Makanan or BPOM) and signifies the holder's compliance with specific regulations concerning product safety, efficacy, and quality.

Obtaining an AKD licence is a detailed process involving product registration, the submission of technical data, and quality system documents. BPOM undertakes an in-depth evaluation, potentially including testing processes, to ensure all necessary standards are met.

2. Navigating TKDN Compliance

Another crucial regulation to comprehend is the TKDN. This regulation stipulates a minimum requirement of domestic components in medical devices to be eligible for sale within the Indonesian market. The TKDN is a testament to Indonesia's commitment to bolstering its local industries, fostering domestic manufacturing capabilities, and reducing over-reliance on imports.

The regulation impacts a broad spectrum of medical devices, and the specific percentage of required local content can vary based on the product type. Failure to comply can result in penalties or restrictions, reinforcing the need for careful adherence.

3. Deciphering Ministry of Health Regulation No. 62/2017

Introduced by the Indonesian Ministry of Health, Regulation No. 62/2017 governs virtually all aspects of medical devices and household health supplies in Indonesia. It provides comprehensive guidance on their registration, licensing, distribution, importation, manufacturing, labelling, advertising, use, and post-marketing surveillance.

• Registration and Licensing - Before a medical device can be distributed, imported, or manufactured in Indonesia, it must be registered with the BPOM. This process is often extensive, requiring thorough documentation, testing, and evaluation.
• Distribution and Import - Regulation No. 62/2017 also outlines the standards for distribution and importation, including licensing, labelling, storage, and transportation practices. Importers and distributors must adhere to Good Distribution Practices (GDP), underlining their commitment to distributing safe, effective, and quality-assured products.
• Manufacturing - For manufacturers, the regulation lays down the requirement of obtaining a production licence from BPOM and compliance with Good Manufacturing Practices (GMP).
• Advertising - The regulation also extends to the advertising of medical devices, providing detailed guidelines on ethical standards and content accuracy. Unregistered or unlicensed medical devices cannot be advertised, emphasising the importance of regulatory compliance.
• Post-Marketing Surveillance - One unique aspect of this regulation is its requirement for post-marketing surveillance to monitor the safety and effectiveness of medical devices in the market. Any adverse events or incidents related to product use must be promptly reported to BPOM.
• Labelling - The regulation outlines labelling requirements for medical devices, ensuring clarity and accuracy. Labels must be in Bahasa Indonesia, among other requirements.
• Classification - The risk-based classification of medical devices, from Class A (low risk) to Class D (high risk), determines the regulatory compliance requirements. Understanding these classes is crucial.
• Enforcement and Penalties - For non-compliance, the regulation establishes a spectrum of penalties, including fines, product confiscation, and potential legal actions.

The Impact of Regulatory Compliance on Business Operations in Indonesia

When it comes to medical devices, regulatory compliance in the Indonesian healthcare sector is not just a matter of adherence to legalities, but a strategic lever for successful business operations. Non-compliance can lead to severe consequences, including financial penalties and licence revocation, underscoring the necessity for businesses to fully understand and adhere to the AKD, TKDN, and the Ministry of Health's Regulation No. 62/2017. Consistent compliance shapes a company's reputation, fostering trust among consumers, investors, and government entities, thereby facilitating business growth and increased market share. Notably, effective navigation through this complex regulatory landscape can also serve as a competitive advantage, leading to smoother operations, reduced regulatory-associated downtime, and improved future planning. Moreover, a comprehensive understanding of these regulations can foster innovation within regulatory boundaries, enabling businesses to develop new products and services, streamline the regulatory approval process, and achieve faster market entry.

Your Strategic Partner in Navigating Indonesia's Medical Device Regulations

With existing medical certifications and a deep understanding of Indonesian regulations, PCI stands ready to help you localise your medical devices. Our turnkey service includes setting up product lines, handling document submission, and managing local content calculations, ensuring your products are recognised as "Made in Indonesia".

Recognising the need for reliable, high-quality supplies in the diagnostic and emergency care sectors, PCI leverages decades of electronics manufacturing experience to assure supply chain stability and flexibility, without compromising quality or cost efficiency. Our additive manufacturing capabilities, combined with comprehensive expertise in design, supplier qualification, and component sourcing, empower our partners to deliver efficient, cost-effective solutions. With a track record of manufacturing various medical components and compliance with quality standards like EN ISO 13485:2012/AC2012, we ensure every product meets the highest quality and regulatory standards.

For locally manufactured products, we assist in securing marketing authorisation, while for imported goods, we facilitate obtaining the necessary credentials for assembling and repackaging. As your trusted partner, PCI is committed to helping you navigate the vibrant Indonesian healthcare market successfully. Contact us today to learn how we can support your journey.

Summary

Navigating Indonesia's medical device regulations can be a complex task, as it involves understanding and complying with multiple regulatory frameworks such as the AKD, TKDN, and the Ministry of Health's Regulation No. 62/2017. These regulations govern everything from product registration to post-marketing surveillance, and non-compliance can result in significant penalties. It's in this challenging landscape that PCI's knowledge and experience in global market access and expertise in electronics manufacturing become invaluable. With PCI as your partner, you can confidently navigate these regulations, ensuring your products meet the highest standards of safety, efficacy, and quality for successful entry into the thriving Indonesian healthcare market.

Disclaimer

The content provided on this blog is intended to furnish readers with general information on the regulatory environment for medical devices in Indonesia. This information on this blog and those from externally referenced internet sites should not be relied upon as legal or professional advice. For specific guidance, please consult with a qualified professional in the respective field. PCI is not responsible for any errors or omissions, or for the results obtained or not obtained from the use of this information. All information on this blog is provided "as is" with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, or of fitness for any particular purpose.