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Opinion | Regulatory Sandbox for Health Technology in Indonesia

Updated: Apr 19, 2022

First published in The Jakarta Post (8/10/21)

Recent data leakages from PeduliLindungi and the Electronic-Health Alert Card (E-HAC) has exposed cybersecurity risks on consumers' health records in the digital space and therefore the adoption of a regulatory sandbox in technology-enabled healthcare (health tech) services could help address this weakness by fostering innovation to improve security in the sector.

Indonesia’s booming digital health is unlocking numerous societal benefits. Teleconsultation service, for example, increases efficiency, puts downward pressure on prices, and eases consumers’ access to the service. The sector is rapidly growing and it is expected to reap revenue of $973 million by 2023.

However, as with other digital services, it faces challenges in guaranteeing data privacy and data security. Innovation is central to address these challenges, and regulatory sandboxes may help provide an ecosystem that allows disruptive innovation to materialize.