Indonesia has managed to cut its dependency on imported pharmaceutical raw materials from 95 percent in 2019 to 90 percent this year, despite the challenges brought by the COVID-19 pandemic. However, this figure still falls short of the government’s target of 65 percent.
The Ministry of Industry said that the slower-than-expected reduction was due to the economic disruptions caused by the COVID-19 pandemic, which slowed down the national economy during 2020-2021.
“During the two years of the COVID-19 pandemic, certain raw materials for the pharmaceutical industry achieved self-sufficiency,” Reni Yanita, Acting Director General of the Chemical, Pharmaceutical, and Textile Industries at the Ministry of Industry, told a hearing at the House of Representatives (DPR) on Monday, June 24, 2024.
Reni said that currently, around 23 industries are producing pharmaceutical raw materials domestically in Indonesia.
Lucia Rizka Andalucia, Director General of Pharmaceuticals and Medical Devices at the Ministry of Health, noted that time is a significant challenge in achieving self-sufficiency in pharmaceutical raw materials. The pharmaceutical industry needs time to adjust drug formulations to suit local raw materials.
This adjustment process is time-consuming due to the need for pharmaceutical research results. Lucia mentioned that the government has allocated funding for this research to speed up the adoption of local raw materials as it requires time and financial resources.
On a positive note, the National Agency of Drug and Food Control (BPOM) reported that the investment climate for domestic pharmaceutical raw material production is favorable. The government has issued regulations to facilitate investment in this sector.
Rita Endang, Deputy for Processed Food Supervision at BPOM, said that the investment process for pharmaceutical raw materials has been streamlined at her office. Therefore, she believes that investing in domestic pharmaceutical raw materials is now relatively straightforward.
