ASSESSING BUSINESS VIABILITY FOR A PRODUCTION JOINT VENTURE IN THE INDONESIAN MEDICAL DEVICE INDUSTRY (CASE STUDY FROM DAENAMIC HEALTH INC. AND AND PT. KENARI JAYA PERKASA)

• Main Author: Putri Maryadi, Martya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84003
• Institution: Institut Teknologi Bandung

This research explores the feasibility of a joint venture between Daenamic Health Inc, a South Korean medical device manufacturer, and PT. Kenari Jaya Perkasa, an Indonesian distributor, that are aiming to establish a local production facility for high-end medical devices in Indonesia. The motivation behind this research is the need to reduce Indonesia's dependency on imported medical devices, which was highlighted during the COVID-19 pandemic. This initiative aligns with Indonesia's government policies to enhance local manufacturing capabilities and improve healthcare infrastructure. This research follows a structured approach surrounding multiple stages: identifying the compatibility of business models and strategic objectives between Daenamic Health Inc and PT. Kenari Jaya Perkasa, analysing the Indonesian medical device market dynamics, and evaluating the financial and operational viability of the proposed joint venture. The study employs a combination of qualitative and quantitative methods, including VRIO framework, and Analytic Hierarchy Process (AHP), to comprehensively assess the partners’ resources and capabilities as well as their strategic fit. Key findings suggest that both parties have complementary strengths that generate the venture a sustainable competitive advantage. The partners synergize in a way that Daenamic Health Inc's advanced medical technology and innovative products complemented PT. Kenari Jaya Perkasa's manufacturing initiative, in addition to their extensive distribution network and market knowledge. The joint venture is expected to leverage these strengths to become a leading local brand in Indonesia's medical device industry. However, potential challenges such as navigating Indonesia’s complex regulatory landscape, managing a layered cost structure, and educating local human capital in high-technology manufacturing must be addressed. Establishing this joint venture extend beyond the Indonesian market. by capitalizing on lower production costs in Indonesia, the venture can achieve competitive pricing and expand its market reach to other Southeast Asian countries and beyond. This move supports Indonesia's goal of self-sufficiency in healthcare, and positions the joint venture as a competitive player in the global medical device market. In conclusion, the venture between Daenamic Health Inc and PT. Kenari Jaya Perkasa has significant potential to transform Indonesia’s medical device industry, reduce reliance on imports, and enhance healthcare accessibility