Presentation (CTI)

OBJECTIVES: Value-Based Healthcare (VBHC) emphasizes optimizing patient outcomes relative to costs, shifting focus from volume to value delivered. As an operational extension, Value-Based Procurement (VBP) evaluates technologies based on lifecycle value rather than upfront price. This study aims to assess Indonesia’s policy landscape supporting VBP for medical devices (MDs) and identify key implementation gaps and propose tangible next steps.
METHODS: A qualitative policy analysis was conducted reviewing national regulations, procurement frameworks, and healthcare financing mechanisms relevant to MD procurement in Indonesia. Key policy instruments analyzed included Health Technology Assessment (HTA), Value for Money (VfM) provisions, and digital procurement platforms (e.g. national e-catalog). Recent implementation initiatives, including the Pharmaceutical and Medical Device Dictionary, Stakeholder-Led Submission for HTA topic proposals, and Operational Cooperation Schemes, were also examined. Evidence was synthesized to map alignment with VBP principles and identify systemic constraints.
RESULTS: Indonesia has established a strong policy foundation consistent with VBP principles. HTA is increasingly used to evaluate value-add for national health insurance. Procurement regulations mandate VfM beyond lowest price, incorporating quality, lifecycle cost, and supplier performance. Digital transformation efforts, including e-catalog enhancements, aim to integrate after-sales service, maintenance, and compliance. Operationally, progress is observed in product standardization, increased HTA engagement, and innovative procurement schemes, particularly in high-cost services like hemodialysis. However, significant implementation gaps persist. Fragmented data systems limit the ability to measure value, including costs, clinical and reimbursement outcomes. Financial oversight still emphasizes lowest price and regulatory fragmentation, creating inconsistencies in value assessment. Additionally, procurement workforce competencies remain limited in applying VBP.
CONCLUSIONS: While Indonesia has made notable progress in embedding VBP, implementation remains largely price-driven rather than value-driven. Advancing VBP requires cross-functional partnership and defining first pilots to scale up to a national level. Other countries show implementing total cost of ownership principles is a first practical step towards achieving systematic healthcare value.