Indonesia Import Regulations for Pre-Owned (Used and Refurbished) Medical Devices - Customs Forum

**admin** · 07-23-2011, 17:36 PM

General Market Condition: No Restrictions, but Public Institutions Cannot Purchase
The Ministry of Health prohibits public hospitals from using used or refurbished medical equipment, however, this prohibition does not apply to private hospitals. Given the poor economic condition in Indonesia, the purchase of new medical equipment is no longer affordable for most hospitals. The situation has compelled private hospitals to seek alternative medical products at an affordable price.
Indonesian medical suppliers discovered that since 1999, the request for used/refurbished medical equipment has increased. This is because hospitals need to replace the old equipment, which was mostly purchased before the economic crisis. According to the medical suppliers, the purchases for used/refurbished equipment are still very low, however, they anticipate the demand will gradually increase in the future.
To protect their image, medical equipment suppliers refused to sell both new and used equipment, although they would do it on a case by case basis upon order. Hospitals were unwilling to buy used/refurbished medical equipment because they claimed that they did not get good service from the manufacturer, spare parts were hard to replace, and after sales service was poor. To take the greatest advantage of export opportunities, used/refurbished equipment suppliers should be able to provide training, technical assistance, spare parts, and after sales service.
The import tariff for medical equipment for both used and new ranges from 5 to 10 percent with a value-added tax of 10 percent.
The Ministry of Health (MOH) prohibits public hospitals from using used or refurbished medical equipment but there is no written regulation on this.
Private hospitals are not bound to the above policy. Imports of used or refurbished equipment had not been very significant in the past. Because of low purchasing power, private hospitals are beginning to show interest in used or refurbished medical equipment.
Local medical suppliers anticipate that the demand for used or refurbished medical equipment will gradually increase in the future.
The import tariff for both used and new medical equipment ranges from 5 to 10 percent. It is subject to a value-added tax (VAT) of 10 Percent.

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