Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan ensured that the government would prepare an attractive incentive scheme to encourage investment in the pharmaceutical sector. In a virtual speech at the National Forum for the Independence and Resilience of the Pharmaceutical Preparation Industry, Monday, Luhut said incentives would be offered not only to SOEs but also to the private sector. "We also plan to provide incentives such as more attractive tax holidays (tax exemptions), we are also preparing industrial areas for the pharmaceutical industry sector, so that a better production ecosystem can be formed," Luhut said in a written statement in Jakarta, Monday.
Luhut emphasized the importance of Indonesia having the independence and resilience of the pharmaceutical industry nationally. Indonesia is considered to be able to realize the resilience of the domestic pharmaceutical industry following the experience of being hit by the Covid-19 pandemic. The Java-Bali PPKM coordinator also said that the Covid-19 pandemic has taught many valuable lessons for countries in the world, including Indonesia. The reason is, when the pandemic hit the world, many countries imposed restrictions on the export of drugs, vaccines and medical devices. This condition made it difficult for Indonesia at that time to meet domestic needs, especially when India was hit by the Delta variant of Covid-19 and China carried out massive vaccinations. "It is difficult for us to get vaccine supplies, even though there is an agreement to schedule delivery, for example from India at that time," he said.
Therefore, Luhut continued, Indonesia must build a domestic industry for the health sector. He said Indonesia could not only rely on supplies from abroad. Thus, if in the future a pandemic occurs again, then there will be no problem from the pharmaceutical side. "We are not stuck like yesterday and the government is ready to be an uptaker of domestic production through a procurement program. Domestic production will be a priority and I see this applies in many countries in the world, they prioritize domestic production," he explained. Luhut added that Indonesia should not be left behind or missed again to fix the pharmaceutical sector, generally the health sector. According to him, it is enough for Indonesia to feel the difficulties experienced during the Covid-19 pandemic. President Joko Widodo has also ordered himself and the Minister of Health to jointly carry out and bring the drug industry into the country. "I am the Head of TKDN (Domestic Component Level), I encourage this and we will make rules that protect our efforts and efforts," he said.
On the other hand, to encourage investment in the pharmaceutical sector, Luhut has communicated to serious assessments with foreign pharmaceutical companies such as Merck, Pfizer, and Johnson & Johnson. Luhut has even met directly with these pharmaceutical companies in New York, USA, and received a positive response. "I met with them and we invited them to invest in Indonesia in the pharmaceutical sector, especially drugs and vaccines that are needed in large quantities. And we are in the process of exploring so that we want the industry to be domesticated," he added.
Sources: https://www.antaranews.com/berita/2510141/luhut-siapkan-insentif-menarik-dorong-investasi-farmasi
