Market Study

As part of this Asia Invest project we have commissioned a Market Study on the Indonesian market for Analytical and Lab Equipment. In the course of the preparation of this project we found that there was very little accurate data available. This Market Study was carried out by the Small and Medium Enterprise Development Institute (SMEDI) in Jakarta in conjunction with SPECTARIS and will be ready shortly. The Market Study will be available to all participants as soon as they register for the event. We believe that this will be very helpful in preparation for your trip to Jakarta and the Matchmaking Event. 

The target industry can be divided into three main sectors:

• Laboratory Equipment - data systems and documentation, automation, Lab furniture and fittings, reagents and chemicals
• Analysis Quality Control -  microscopes and optical image processing, industrial process control, material testing, petrochemical analysis, quality control in pharmacology, food safety testing
• Biotechnology/Life Sciences -  Diagnostics in medical research, Equipment for Biotechnology, Biochemicals, Lab technology for Biotech, Bio process technology, Bio Analysis

And additionally the " End Customers": Environmental/ Pollution Control; Water Quality Control; Food Quality Control; Healthcare Sector; Pharmaceutical Industry; Certification Bodies and State Departments

A Brief Overview of the Indonesian Market

Up until the Asian financial crisis the Indonesian economy was stable and growing steadily.  Since the crisis the economy has been struggling and the country is in need of investment from abroad.  Indonesia relies on industry for 40% of its GDP. The Analytical and Lab Equipment Industry  can be characterised  as follows: low-level instruments are being produced locally to supply the domestic market. Some of these products are exported to other Asian countries; high level and more sophisticated products are being imported from the rest of the world though.   There are currently about 200 manufacturers producing locally.

In 2004 the total market for analytical and laboratory equipment was valued at approx. 123 million USD. Most of the products were imported, mainly from Japan (23 million USD), the USA (19 million USD), Singapore (13 million USD), the Republic of South Korea (13 million USD) and Germany (11 million USD). The main import products are machinery, plants or laboratory equipment for the treatment of materials with temperaturer controle equipment (without refrigerating) - with an import value of approx 44 million USD in 2004.   

The Import Market (2004) can be divided as follows:

Temperature Control Equipment: 44 million USD
Refrigerating or Freezing Equipment: 11.1 million USD
Centrifuges for laboratories: 11 million USD.
Equipment for Physical or Chemical analysis: 10.4 million USD

The market can be divided into the following Customer Segments:

Source: Estimation SMEDI

The Indonesian Export Market is  dominated by microtomes and parts of scientific analysis equipment. The import value of this product group was 1.7 million USD in 2004. Followed by vacuum pumps (0.7 million USD) and equipment for the treatment of materials by a process involving a change of temperature (0.7 million USD).

A Brief Overview of the European Market

The European Market for Analytical and Lab equipment is a very strong and dynamic market. In Germany, there are approx. 327 SMEs employing a work force of 35.000. In the UK - 210 companies; France -110; and Italy-120. The mostly medium-sized German companies active in the field of analytical and laboratory equipment are characterized by a significant level of research and development. They concentrate on sophisticated high-tech products. This high degree of specialization on niche products enables them to successfully offer „tailor-made" technological solutions made in Germany. With an average share of 9,5 % of the total revenue, the expenditures for research & development are very high. More than 12 % of the employees are working in this field. Over 40 % of the products are younger than 5 years. These are clear signs for the innovativeness, the future ability and international competitiveness of the German industry for analytical and laboratory equipment. German exports of analytical and laboratory equipment to Indonesia in 2004 increased with a growth rate of 114 % to 6,5 million EUR. 
The French market for analytical and laboratory equipment has a value of 1.2 billion EUR and employees about 10.000 people. 25 % of the equipment bought is "made in" France and the rest is imported. The companies which manufacture their products in France export 50% of their production which means that the French industry has an annual turnover of 600 million euros. About 110 companies manufacturing and most of them are small companies highly specialised and have strong connections to the research and development activity in Europe. Furthermore companies invest from 10 to 15% of their turnover in R&D.They have concentrated their activity in the fields of: Environment monitoring; Food and beverage quality control and Biotechnology development. The turnover in Italian Market is approx 0,8 billion EUR - new instruments accounting for 60 % and 40 % can be attributed to after sales services. The UK Market experienced growth in the industry in 2004. Total output of the industry is £2.8 billion.