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Clinical Care – How to Set Up a Clinic Business in Indonesia
Healthcare is trending! 3E Accounting has some insights on how to set up a clinic business in Indonesia.
Healthcare is big business the world over, and Indonesia is no exception. It is considered one of the largest and most lucrative industries in Indonesia. The government has implemented a universal healthcare programme or JKN (Jaminan Kesehatan Nasional). This is one of the largest in the world, providing healthcare for more than 200 million people. A rising middle class is also incentivising the private sector, leading the push for future demand. If you want to get in on the action, 3E Accounting shows you how to set up a clinic business in Indonesia.
The Rise of Healthcare
Most of the healthcare industry in Indonesia consists of Puskesmas or government-run community health centres. Healthcare also includes manufacturing, pharmaceuticals, research and development as well as medical tourism. Hybrids of resorts and clinics are common here, making it a very enticing sector for both local and foreign investors.
The Indonesian government is actively encouraging foreign and local investment by:
- Amending its Negative Investment List, which, amongst others, has opened up laboratory and medical clinics to more foreign investment.
- Establishing the BPJS (Badan Penyelenggara Jaminan Sosial or Social Security Administrator for Health) to administer the JKN, which is mandatory to all Indonesians and expatriates in Indonesia.
To get started with your clinic business, consider the legal structure of your company. Having a legal entity status is a safer bet as the nature of the business carries high liability risk. Your incorporated company can include:
- Local Limited Liability Company (Perseroan Terbatas or PT) which is locally owned
- Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) which is foreign-owned
Foreign investors are required to follow specific regulations and investment amounts, as per the Negative Investment List. PT PMA companies will also need to apply for the Permanent Business License from the Capital Investment Coordinating Board (BKPM). By doing so, foreign investors and entrepreneurs contribute effectively to the economic sustainability and development of the country.
Company incorporation and licensing is via the Online Single Submission (OSS) system, which will issue a Business Identification Number (NIB). After incorporation, you will need to get tax registrations done as well as getting a Letter of Domicile where applicable.
To set up a clinic business in Indonesia, you will need to apply for one or all of the following licences:
- Hospital License – from the Ministry of Health in Indonesia
- Pharmaceutical License and Medical Devices Registration License – from the Agency of Drug and Food Control
- Medical Devices Distributor Permit – from the Health Sciences Authority
The Future of Medicine
A multi-billion-dollar opportunity awaits the discerning entrepreneur in the healthcare industry. 3E Accounting can assist you in your journey to set up a clinic business in Indonesia. The right partnership can help you go the distance. 3E Accounting has the required industry expertise to assist in every stage of the business ecosystem.
Contact 3E Accounting today for essential solutions towards a great business.