Pathology Laboratories or Testing Centers

Test tubes in a clinic

By Mufid Majnun on Unsplash

Pathology Laboratories or Testing Centers
Focus on carrying out genomic and molecular testing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Business Model Description

Invest in establishment of accessible B2C pathology laboratories or testing centers that carry out genomic and molecular testing, connected to epidemiological data and digital information systems, thereby also supporting national vaccination / immunization drives. Examples of companies active in this space are:

PT Nusantara Genetic Semesta, founded in 2019, is a biotechnology company which analyzes microbiome profiles for skincare, personal care, food and beverage industries. In 2020, it raised USD 0.7 mn from East Ventures Pte. Ltd. (14)

GSI Lab was established to help Indonesia control Covid-19. It focuses on a high-throughput PCR (polymerase chain reaction) diagnostic laboratory with a capacity of up to 5,000 tests per day. It is powered by highly trained staff, automated PCR equipment, and digital systems for maximum accuracy and large-capacity same-day results, if required.

PT Prodia Widyahusada Tbk (PRDA) is a Clinical Laboratory chain and the national referral lab, operating through 151 branches and outlets in >96 cities (39.2% revenue market share). It provides laboratory and panel test services, along with other diagnostics support services. Initial Public Offering (IPO) of PRDA on the Indonesian Stock Exchange raised proceeds of USD 120 mn. (15)

Expected Impact

Affordable diagnostic service provision to ensure timely diagnosis and treatment of diseases contributing to improved healthcare systems in Indonesia.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • (1) Bappenas. 2021. Indonesia's Voluntary National Review 2021. https://sustainabledevelopment.un.org/content/documents/280892021_VNR_Report_Indonesia.pdf. (2) Republic of Indonesia. 2019. Roadmap of SDGs Indonesia Towards 2030. https://www.unicef.org/indonesia/media/1626/file/Roadmap%20of%20SDGs.pdf. (3) SEKRETARIAT NASIONAL SDGS. 2019. Indonesia's SDG National Action Plans-RAN SDGs 2021-2024. https://sdgs.bappenas.go.id/category/dokumen/rencana-aksi-nasional-ran/. (4) MAMPU-AIPEG. 2020. Consequences of Child Marriage in Indonesia. https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0004/3491923/MAMPU-Child-Marriage-in-Indonesia.pdf (5) BPS. 2018. 2018 Socio-economic National Survey (Susenas). https://www.bps.go.id/publication/2018/11/26/81ede2d56698c07d510f6983/statistik-kesejahteraan-rakyat-2018.html. (6) Healthcare Resource Guide: Indonesia. 2019. The U.S. Department of Commerce’s International Trade Administration. https://2016.export.gov/industry/health/healthcareresourceguide/eg_main_108589.asp. (7) EY Indonesia. 2017. Ripe for investment: the Indonesian health care industry post introduction of universal health coverage. https://persi.or.id/wp-content/uploads/2017/12/ripe-for-investment.pdf. (8) Macrotrends. 2021. Indonesia Healthcare Spending 2000-2022. https://www.macrotrends.net/countries/IDN/indonesia/healthcare-spending. (9) World Bank. 2018. Is Indonesia ready to serve? https://openknowledge.worldbank.org/bitstream/handle/10986/30623/130496-WP-P154841-PUBLIC-Is-Indonesia-Ready-to-Serve-21Sep2018-lores.pdf?sequence=1&isAllowed=y (10) Ministry of Health of the Republic of Indonesia. 2021. The 2020-2024 Minister of Health Strategic Plans. https://farmalkes.kemkes.go.id/2021/03/rencana-strategis-kementerian-kesehatan-tahun-2020-2024/. (11) Suara. 2021. Eijkman Sebut Lab di Indonesia Terbatas, Kasus Covid-19 Banyak Belum Terdeteksi. https://www.suara.com/news/2021/08/26/151421/eijkman-sebut-lab-di-indonesia-terbatas-kasus-covid-19-banyak-belum-terdeteksi (12) The Jakarta Post. 2020. Poor, rich Indonesians do not get equal access to COVID-19 tests: Why it’s a problem This article was published in thejakartapost.com with the title "Poor, rich Indonesians do not get equal access to COVID-19 tests: Why it’s a problem". https://www.thejakartapost.com/academia/2020/04/23/poor-rich-indonesians-do-not-get-equal-access-to-covid-19-tests-why-its-a-problem.html (13) Ken Research. 2018. Indonesia Clinical Laboratory Market Outlook to 2022 - By Type (Public Clinical Lab, Private Hospital Labs and Private Independent Labs), By Type of Test (Routine, Non Laboratory and Esoteric). https://www.kenresearch.com/healthcare/diagnostics/indonesia-clinical-lab-market/143543-91.html
IOA Sources
  • (14) Crunchbase. 2021. Seed Round - Nusantics. https://www.crunchbase.com/funding_round/nusantics-seed--b91c0829 (15) Avant Garde. 2016. Selected Transaction - PT Prodia Widyahusada Tbk. https://avantgarde-corp.com/selected_transaction/PT%20Prodia%20Widyahusada%20Tbk (16) MNC Sekuritas. 2021. INITIATE REPORT. https://www.mncsekuritas.id/po-content/po-upload/Research/Company_Update/2021/MNCS_Initiate_Report_-_PRDA_(220721).pdf (17) Prodia. 2020. 2020 Annual Report. https://prodia.co.id/ViewerJS/#../Assets/pdf/AR%20PRDA%202020_FINAL%20(1).pdf (18) WHO. 2021. Why genomic sequencing is crucial in COVID-19 response. https://www.afro.who.int/news/why-genomic-sequencing-crucial-covid-19-response#:~:text=How%20crucial%20is%20genomic%20sequencing,the%20start%20of%20the%20pandemic. (19) IDX. 2020. PAPARAN PUBLIK (PUBLIC EXPOSE) - IDX. https://www.idx.co.id/StaticData/NewsAndAnnouncement/ANNOUNCEMENTSTOCK/From_EREP/202011/65c790cc42_e8772c008b.pdf (20) Ken Research. 2018. Indonesia Clinical Laboratory Market Outlook to 2022 - By Type (Public Clinical Lab, Private Hospital Labs and Private Independent Labs), By Type of Test (Routine, Non Laboratory and Esoteric). https://www.kenresearch.com/healthcare/diagnostics/indonesia-clinical-lab-market/143543-91.html (21) Republic of Indonesia. 2021. Annexes Indonesia’s Voluntary National Review . https://sdgs.bappenas.go.id/laporan-voluntary-national-review-vnr-indonesia-2021/ (22) WHO. 2019. INDONESIA - A community-led advocacy campaign to mobilize local funding for tuberculosis. https://cdn.who.int/media/docs/default-source/documents/tuberculosis/engage-tb-indonesia-case-study5ec459ba-a954-4016-b438-a37cb458b1b0.pdf?sfvrsn=41414a18_1&download=true (23) Republic of Indonesia. 2017. Kepmenkes No. HK.01.07/MENKES/650/2017. http://hukor.kemkes.go.id/uploads/produk_hukum/KMK_No._HK_.01_.07-MENKES-650-2017_ttg_Rumah_Sakit_dan_Puskesmas_Uji_Coba_Program_Telemedicine_.pdf (24) Menteri Kesehatan Republik Indonesia. 2021. Peraturan Menteri Kesehatan Republik Indonesia Nomor 14 Tahun 2021. https://persi.or.id/wp-content/uploads/2021/05/pmk14-2021.pdf. (25) Republic of Indonesia. 2022. APBN 2022. https://www.kemenkeu.go.id/media/18316/advertorial-rapbn-2022.pdf (26) BPS. 2020. PERATURAN BADAN PUSAT STATISTIK NOMOR 2 TAHUN 2020 TENTANG KLASIFIKASI BAKU LAPANGAN USAHA INDONESIA. https://legalitas.org/KBLI-2020.pdf. (27) Ministry of Health. 2018. THE MINISTER OF HEALTH OF THE REPUBLIC OF INDONESIA NUMBER 40 OF 2018 CONCERNING GUIDELINES FOR IMPLEMENTING COOPERATION WITH THE GOVERNMENT AND BUSINESS ENTITIES IN THE PROVISION OF HEALTH INFRASTRUCTURE. https://peraturan.bpk.go.id/Home/Details/139666/permenkes-no-40-tahun-2018. (28) Ministry of Health of the Republic of Indonesia. 2021. MoH Regulation No. 62/2017. https://peraturan.bpk.go.id/Home/Details/112243/permenkes-no-62-tahun-2017 (29) Ministry of Finance. 2019. MOF Regulation Number 128/ PMK.010/2019. https://jdih.kemenkeu.go.id/fullText/2019/128~PMK.010~2019Per.pdf (30) Ministry of Finance. 2021. MoF Regulation no. 92/PMK.04/2021. https://jdih.kemenkeu.go.id/download/dccabf84-7ffe-41cb-a580-ba21f6e27848/92~PMK.04~2021Per.pdf (31) Ministry of Health. 2021. PROFIL KESEHATAN INDONESIA TAHUN 2020. https://www.kemkes.go.id/downloads/resources/download/pusdatin/profil-kesehatan-indonesia/Profil-Kesehatan-Indonesia-Tahun-2020.pdf.