The pharmaceutical industry in Indonesia plays a crucial role in ensuring the availability and accessibility of essential medicines for all societal levels. The increased domestic production capacity has bolstered resilience against global health crises, such as the COVID-19 pandemic. According to the Indonesian Ministry of Health, local pharmaceutical industries can meet domestic demand without excessive reliance on imports, which are often susceptible to international supply chain disruptions. With an annual production capacity of 40 billion tablets, Indonesia can independently fulfill its medicinal needs. This capability negates the need for significant foreign investment or importation of finished drugs. Furthermore, Indonesia successfully produced large quantities of vaccines rapidly during the COVID-19 pandemic, supported by proactive government policies providing incentives and support through Government Regulation No. 1010 of 2020.
The Indonesian pharmaceutical industry also focuses on developing herbal-based medicinal products, known as phytopharmaceuticals. Utilizing over 30,000 plant species, 940 of which have medicinal properties, the industry can reduce dependence on imported chemical raw materials and sustainably harness Indonesia's natural resources. This approach benefits the entire supply chain, from farmers to distributors. Recent highlights include the emphasis on developing modern Indonesian medicines (OMAI) to enhance public health and reduce dependency on imported drugs. By leveraging Indonesia’s rich biodiversity, the country can innovate in biotechnology, producing high-value products like enzymes, vaccines, and antibiotics. Comparative insights show Indonesia's strategic position alongside countries like India, China, Japan, South Korea, and Vietnam, which have thriving pharmaceutical industries backed by substantial R&D investments and government support. Government Regulation No. 1010/2020 offers vital incentives, such as import duty exemptions and tax benefits, to boost local pharmaceutical production and innovation. This policy aims to ensure affordable, quality medicines, fostering economic welfare and industry competitiveness on a global scale.
Source: https://www.kompas.id/baca/opini/2024/06/04/industri-farmasi-indonesia-sebagai-industri-strategis
