Minister of Industry Agus Gumiwang Kartasasmita highlighted the significant contribution of the chemical, pharmaceutical, and traditional medicine industries to foreign exchange earnings. During the fourth quarter of 2023, exports from these sectors reached USD 543.7 million, marking an increase of 8.78% compared to the same period the previous year (year-on-year or YoY). Kartasasmita emphasized the prioritization of herbal and natural product industries as part of the industrial development plan from 2020 to 2035. This focus aligns with the National Medium-Term Development Plan (RPJMN) 2020-2024, emphasizing strategic issues such as increasing economic value through downstream development of agriculture and forestry industries. The strategy includes processing main commodity derivatives, such as medicinal plants and spices, developing geographical indications for herbal medicines, and standardizing processes and natural ingredient products.
Bank Indonesia's data on the Prompt Manufacturing Index-BI (PMI-BI) for the chemical, pharmaceutical, and traditional medicine industries showed optimism, with a PMI BI value of 52.50 in the fourth quarter of 2023, indicating expansion. Global natural medicine market in 2023 reached USD 200.95 billion, with anticipated growth. Kartasasmita stressed the need to enhance the natural medicine industry's competitiveness globally, particularly leveraging Indonesia's cultural heritage of traditional herbal medicine, notably jamu, officially recognized as Indonesia's 13th Intangible Cultural Heritage by UNESCO on December 6, 2023. Currently, Indonesia's natural medicine industry comprises various components including Small Traditional Medicine Businesses (UKOT), Micro Traditional Medicine Businesses (UMOT), Natural Ingredient Extraction Industry (IEBA), and Traditional Medicine Industry (IOT). These entities have produced 17,000 herbal jamu products, 79 standardized herbal medicines, and 22 types of phytopharmaceuticals. The Ministry of Industry is committed to supporting and nurturing small industries to upscale their operations, particularly in natural medicine production, emphasizing phytopharmaceuticals as a potential substitute for imported raw materials towards achieving national pharmaceutical self-sufficiency.
