Indonesia Pharmaceutical Industry Opens Door for Global Investors

A variety of pharmaceutical products, including vials of liquid medication, syringes, and blister packs of pills, representing the opportunities for foreign investment in the Indonesia pharmaceutical industry.

The Indonesia pharmaceutical industry is at a crucial period, facing both significant challenges and opportunities for growth. Currently, the sector is heavily reliant on imports, with around 90% of raw materials for medicines sourced from overseas, as revealed by the Food and Drug Monitoring Agency (BPOM).

To address these issues, the head of BPOM, Taruna Ikrar, stated, as reported by idxchannel.com, “We are open to foreign companies to invest in drug production in Indonesia.” By fostering international partnerships, Indonesia aims to strengthen its pharmaceutical landscape, enhance innovation, and improve access to affordable medicines.

This strategic move not only opens doors for global investors but also reflects Indonesia’s commitment to creating a more sustainable and self-reliant pharmaceutical sector.

 

Eradicating Drug Mafia Operations

In addition to the Import challenges, drug mafia operations proved to be another significant factor contributing to the inflated prices for pharmaceuticals.

The National Police Chief, General Listyo Sigit Prabowo, has emphasized that he will take firm action against the mafia that drives up medicine prices in the country. “We will jointly take action against violations that impact the safety of all members of the public, particularly those related to food and drug violations.” he stated, as reported  by metrotvnews.com.

This commitment to eradicating drug mafia operations is crucial for creating a fairer market and ensuring that the public has access to affordable medicines. Addressing these issues underscores the urgent need for local production capabilities and highlights the importance of foreign investment.

 

Investment Opportunities in Indonesia Pharmaceutical Industry

Foreign investors have significant opportunities to contribute to Indonesia’s pharmaceutical industry, particularly in local manufacturing and research and development (R&D). By establishing manufacturing facilities, investors can help reduce the reliance on imported medicines and ensure a steady supply of essential drugs. Additionally, investing in R&D can lead to the development of innovative products tailored to the local market’s needs.

The Indonesian government is known to offer various incentives to attract foreign investment, including tax holidays, streamlined licensing processes, and support for technology transfer initiatives. These policies create a favorable environment for investors, encouraging them to play a vital role in strengthening the country’s pharmaceutical sector and enhancing healthcare access for the population.

 

Future Outlooks for Indonesia’s Pharmaceutical Industry

If foreign investment is successfully achieved, Indonesia’s pharmaceutical industry could experience enhanced local production, reduced import dependency, and increased innovation through advanced technologies. This would lead to job creation, improved healthcare access, and stronger global partnerships. Additionally, a more robust industry could help in the eradication of drug mafia operations, as legitimate businesses would provide safer, regulated alternatives.

Conversely, if foreign investment is not realized, the industry may continue to rely heavily on imports, resulting in supply chain vulnerabilities and limited innovation. This stagnation could then hinder economic growth, create fewer job opportunities, and exacerbate healthcare challenges, ultimately affecting access to essential medicines for the population. Thus, the success of foreign investment is crucial for the industry’s future development and the overall health of the Indonesian population.

 

 

Source: metrotvnews.com, idxchannel.com

Image: Getty Images

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.