EIBN Pharmaceutical Info Session
EU-Indonesia Business Network (EIBN) organised the info session “Pharmaceutical Industry in Indonesia” on Tuesday, May 9th, 2017 at EKONID office. The info session was supported by the Indonesia Ministry of Health, International Pharmaceutical Manufacture Group (IPMG), and PT. Novartis Indonesia.
Indonesia is a promising market for the pharmaceutical industry. There are several factors driving the growth of the national pharmaceutical industry, namely the large population of Indonesia; increasing public awareness of health; the continuous economic growth in the last several years; and improving health access in line with the implementation of BPJS Health.
The national pharmaceutical market grew at an average of 12% per year (CAGR) in the period 2010-2014. The national pharmaceutical market in 2015 reached approximately USD 4.6 billion and increased to USD 5.1 billion by 2016. The Government of Indonesia has launched their social security program of health in 2014 by which the implementation is expected to elevate the pharmaceutical industry in Indonesia. The participation of country’s population has reached 175 million by 2017 (60% of population). The JKN program has made Indonesia one of the fastest growing pharmaceuticals markets in the region as the growth is expected to reach 10% by 2017.
On another hand, the government has revised the Negative Investment List in 2016 and now foreign investors are allowed to have 85% ownership in pharmaceutical industry. This action should definitely make the industry more interesting for direct investment; however, it hasn’t peaked up accordingly.
The session was opened by the EIBN Project Director, Mr. Jan Roennfeld and the session was followed by presentations on:
- “Indonesia’s Pharmaceutical Situations” by Mr. Muhammad Zulfikar Biruni, s.farm, apt. representative from Ministry of Health Republic Indonesia
- “Pharmaceutical Industry in Indonesia” by Mr. Jorge Wagner, Chairman of IPMG
- “Discover new ways to improve and extend people’s lives”, Mr.Milan Paleja, President Director of PT. Novartis Indonesia
All presentations and discussions were welcomed by the participants with high enthusiasm.
This info session was part of the EIBN Info Session series programme exclusively for EU embassies, EU chamber of commerce and industries and EU business support organisations in Indonesia.