Tuesday, July 16, 2024

Indonesia reduces reliance on imported pharmaceutical raw materials

Reading Time: < 1 minute
Journalist IBP




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.

Journalist IBP






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


State-owned construction and investment company PT Pembangunan Perumahan (PP) is set to undertake a significant energy sector project valued at approximately Rp2 trillion (US$123.4 million).
PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, is working on several strategic gas pipeline projects, including the Cisem Phase II project in which PGN will synergize with the government to distribute gas from East Java to West Java.
PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2.
Indonesia’s utilization of geothermal energy has reached just 2.4 gigawatts (GW), a mere 10 percent of its total potential of 23.9 GW that industry players call for clearer regulations and incentives from the government to optimize this significant renewable energy resource.
A senior officer with PT Bank Danamon Indonesia (BDMN) reveals that the bank aims for double-digit loan growth in 2024 upon monitoring positive trend of the bank’s lending so far.
French mining company Eramet SA is in discussions with Zhejiang Huayou Cobalt Co (Huayou) to produce nickel for electric vehicle batteries in Indonesia.