An important, new consideration to sales success in Indonesia is the e-Catalogue listing. This on-line procurement system was established to bring transparency and prevent corruption in government purchases, including public hospitals, as administered by the Indonesian Government Goods and Services Procurement Organization (LKPP).
Although initiated in 2013, it took parties some time to understand the implication on sales. At first, companies seemed weary to participate in the voluntary system. Those that did enjoyed strong sales results and so now there is a rush for all to be listed.
After an Import License for a device is issued, the License Holder can apply to the Ministry of Health for an e-Catalogue listing meeting at which the listing price will be negotiated. A required element for the meeting is a commercial invoice from at least one device shipment to Indonesia. Price negotiations are for a percentage mark-up from the invoiced landed cost typically between 25% to 35%. There is no government application fee for the application process, but the queue can be 6 months or longer for the price negotiation meeting.
Implementing an optimal pricing strategy will be critical to successful public hospital sales. The e-Catalogue system also increases the importance of independent license holding in Indonesia because there is little room for regional dealer margin under the price scheme.
Asia Actual works closely with clients to optimize pricing and obtain the fastest e-Catalogue listing for your devices.