Investing in Indonesia’s

Healthcare and
Pharmaceuticals Sector

Directorat of Downstream Chemical and

Pharmaceutical Industries

Jakarta, February 14th 2023

 OUTLINE

● Investment Regulation of Industry Sector in Indonesia

● Investment of Pharmaceutical Industry in Indonesia

● Investment of Medical Devices Industry in Indonesia

2
 Law of The Republic of Indonesia. Number 3 of 2014.
on. Industrial Affairs

INVESTMENT Presidential Regulation No. 49 of 2021 regarding

Amendment to Presidential Regulation No. 10 of 2021 on
REGULATIONS Capital Investment Business Sector
OF INDUSTRY
Minister of Industry Regulation No. 64/M-
SECTOR IND/Per/7/2016 on the Amount of Labour and
Investment Value for the Industrial Businesses
IN INDONESIA Classification

3
 NATIONAL INDUSTRY DEVELOPMENT MASTER PLAN (RIPIN) 2015-2035
Industrial Development Goals
No Industrial Development unit 2015 2020 2025 2035
Indicators
KEY POINTS
1 Growth of Non-Oil and Gas % 6,8 8,5 9,1 10,5
Industries Sector

2 Contribution of Non-Oil and Gas % 21,2 24,9 27,4 30,0

Industries to GDP
● 2-digit growth of industries
parallel with GDP contribution
3 Contribution of Non-Oil and Gas % 67,3 69,8 73,5 78,4 up to 30% in 2035
Industries Products to Total
Export
● Strengthening Indonesia’s
position/market share in
4 Number of Industries Workforce n people 15,5 18,5 21,7 29,2 domestic and international
(million) markets through the
availability of local raw and
5 Percentage of Industries % 14,1 15,7 17,6 22,0 auxiliary materials
Workforce to Total Workforce
● Nationwide industrial
6 Ratio of Industries Raw Material % 43,1 26,9 23,0 20,0 extension and dissemination
Import to Non-Oil and Gas
Industries GDP ● Innovation development and
technological mastery
7 Value of Industrial Investment Billion Rupiah 270 618 1.000 4.150

8 Percentage of Industries added- % 27,7 29,9 33,9 40,0

value generated outside Java

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 NATIONAL INDUSTRY DEVELOPMENT MASTER PLAN (RIPIN) 2015-2035
Stages of Industrial Development Goals
and Determination of Prioritized Industries
VISION & MISSION OF
NATIONAL INDUSTRY DEVELOPMENT

Mainstay Industries

Pharmaceuticals, Textile, Leather, Transportatio Electronics and Energy

Food Cosmetics, and Footwear, and
Medical Devices Miscellaneous n instrument Telematics/ICT Generator
Industry
Industry Industry Industry Industry Industry PHASE
3
Supporting Industries

Capital Goods, Components, Auxiliary Material, and Service Industries RESILIENT

INDUSTRIAL
PHASE COUNTRY
Upstream Industries
2
Base metals and non-metallic Oil, Gas, and Coal based
Upstream Agro-Industry
minerals Industry Chemical Industry

PHASE COMPETITIVE
Basic Capital ADVANTAGES &
1 ENVIRONMENTA
Technology, Innovation, and L INSIGHTS
Natural Resources Human Resources
Creativity

INCREASING THE
Precursor
ADDED VALUE OF
NATURAL
Infrastructure Regulations and Policies Monetary RESOURCES
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 NATIONAL INDUSTRY DEVELOPMENT MASTER PLAN (RIPIN) 2015-2035
Prioritized Industries Development Programs
PHARMACEUTICAL AND COSMETIC INDUSTRY
Period 2015-2019
1. Improving mastery of processing
technology and product engineering
for pharmaceutical and cosmetic
industries through integrated
research and development;
2. Facilitating the development of
pharmaceutical and cosmetic raw
material industry for import
substitution;
3. Encouraging increased use of
domestic products, including
increasing linkages between large,
small, and medium industries;
4. Strengthening the infrastructure in
the context of implementing the
Indonesian Pharmacopoeia Standards
for pharmaceutical and cosmetic
industries;
5. Developing upstream petrochemical
sector to reduce dependency on raw
materials;
6. Developing research and
manufacture of standardized and
integrated biotechnology and herbal
products;
6
7. Building competency and
pharmaceutical research capabilities
for biotechnology and herbal
products;
8. Doing master of technology and
building the manufacturing
capabilities according to international
standard;
9. Improving clinical trial capabilities.
Period 2020-2035
1. Developing the national technology
to produce pharmaceutical and
cosmetic raw ingredients;
2. Facilitating the development of
large-scale pharmaceutical and
cosmetic industry with an export
orientation;
3. Developing the accredited test
laboratory;
4. Improving mastery of the latest
technology transfer for each
pharmaceutical preparation and raw
materials.
MEDICAL DEVICES INDUSTRY
Period 2015-2019
1. Developing policies to link mass medical
devices industry with healthcare
financing as a form of cross-subsidy;
2. Developing policies on the use of
domestic medical devices products in
health facilities and services funded by
the State Revenue and Expenditure
Budget (APBN);
3. Facilitating promotion of the use of local
medical devices products, including
training and spare parts/maintenance
guarantees;
4. Developing a roadmap for the medical
devices industry in an integrated manner
including components, raw materials,
and auxiliary materials;
5. Establishing a center of excellence that
cover research & development and mass
production of raw medical devices for
local needs;
6. Developing high competency in human
resources in medical devices product
design engineering, including
measurement and testing;
7. Facilitating the finances of mass raw
medical devices industry to increase
industry capacity through revitalization of
machinery and measurement tools;
8. Developing standardization and
intellectual property rights support on
local medical devices products;
9. Developing and strengthening small and
medium modern industries that produce
medical device components through
technical assistance and test equipment.
Period 2020-2035
1. Further development to strengthen
the capability, quality, and efficiency
medical devices industry;
2. Developing the technology and human
resources to design applications for
medical devices and bionics (artificial
organs) that combine aspects of
health, biology, materials, cognitive,
and micro/nanoelectronics;
3. Developing the center of excellence
which covers research and development
and mass production of raw medical
devices for local needs;
4. Further development of the
standardization and intellectual
property rights support on local medical
devices products;
5. Further development to strengthen
small and medium modern industries
that produce medical device
components through technical
assistance and test equipment.
 NATIONAL INDUSTRY DEVELOPMENT MASTER PLAN (RIPIN) 2015-2035
Pharmaceutical, Cosmetic, and Medical Devices Industry Zoning

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 INVESTMENT OF PHARMACEUTICAL, CHEMICAL PRODUCTS, AND TRADITIONAL
MEDICINE INDUSTRIES IN INDONESIA (KBLI 21)

Value of Investment (Thousand US$)

ASIA 396.528,0

AMERICA 17.767,2

EUROPE 225.923,7

AFRICA 230.907,4

TOTAL 871.126,3
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 CLASSIFICATION OF PHARMACEUTICAL PRODUCTS
CHEMICAL-BASED
Products containing active ingredients
from chemical synthesis
(petrochemicals > intermediate/fine
chemicals > active pharmaceutical
ingredients)
Pure synthesis:
Chemical medicines such as:
paracetamol, acetosal, amlodipin,
metformin, etc
Semi synthesis:
Antibiotics such as amoxicillin,
cefixime, azithromycin, etc
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BIOLOGIC-BASED HERBAL-BASED
Products containing biological materials from humans, animals, or Products containing materials or
microorganisms concoctions from plants, animals,
minerals, essence (galenics), or their
mixtures
Vaccines:
Derived from bacteria or viruses that have been weakened or killed, to
develop immunity in the body
Herbal medicine:
Biotechnological products: Safety and benefits proven empirically.
Products from fermentation, genetical engineering, or cloning; such as:
monoclonal antibodies and recombinant proteins, etc
Conventional products: Standardized Herbal Medicine:
Products from extraction, fractionation, reproduction, or cultivation; such Safety and benefits proven scientifically
as albumin, immunoglobulin, antivenom, serum anti tetanus, etc through preclinical test.
Cell/gene therapy:
• Hematopoietic stem cells: bone marrow cells that produce red blood
cells, white blood cells, and platelets Phytopharmaceuticals:
• Mesenchymal stem cells: multipotential stem cells that differentiated Safety and benefits proven scientifically
into bone, muscle, ligament, tendon and fat cells through clinical test.
 NATIONAL PHARMACEUTICAL INDUSTRY CURRENT INVESTMENT
INVESTMENT STATUS COMPANIES / INSTITUTIONS
Pharmaceutical Industries are
mostly centered in Java & Sumatera
3 BUMN companies:
- PT Bio Farma (Holding)
- PT Kimia Farma (4 plants)
- PT Indofarma

State-owned (BUMN) 5 BUMN subsidiaries:

- PT Phapros
- PT Kimia Farma Sungwun Pharmacopia
- PT Sinkona Indonesia Lestari
- PT Lucas Djaja
- PT Marin Liza Farmasi

Domestic investment
181 companies
(PMDN)

Foreign investment (PMA) 41 companies

3 pharma institutions:
Indonesian National Armed
- Pharmacy Institute of Army (TNI AD)
Forces Pharma Institutions
- Pharmacy Institute of Air Force (TNI AU)
(LF TNI)
- Pharmacy Institute of Navy (TNI AL)

Government Research 1 research institution – radiopharmaceutical products

Institutions - National Nuclear Energy Agency (BATAN)
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 PHARMACEUTICAL INDUSTRIES - FOREIGN INVESTMENT (PMA)

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 PHARMACEUTICAL INDUSTRIES - FOREIGN INVESTMENT (PMA)
ASIA - 19 Companies
COUNTRY OF
NAME PRODUCT TYPE
Produce Pharma Raw Material ORIGIN

Nonbetalactam Coated Tablets and Tablets,

COUNTRY Ampicillin sodium sterile powder
NAME PRODUCT TYPE PT. Meiji Indonesian Pharmaceutical
OF ORIGIN Japan Cloxacillin Sodium Hydrate Sterile Powder
Industries
Potassium benzylpenicillin sterile powder
PT. Inna Pharmaceutical China Semisolid Nonbetalactam Sulbactam Sodium Sterile Powder
Industry
PT. Etana Biotechnologies Indonesia Hongkong Small-Volume recombinant injection
PT. Amarox Pharma Global India Nonbetalactam Tablets

PT. BRIGHTGENE BIOMEDICAL Hongkong API raw material with chemical synthesis
PT. Rohto Laboratories
Japan External Nonbetalactam Liquid INDONESIA
Indonesia

PT. Prodia StemCell Indonesia Singapore Allogeneic stem cell injection

PT. Mitsubishi Tanabe Japan
Nonbetalactam Coated Tablets and Tablets
Pharma Indonesia
PT. Lloyd Pharma Indonesia Singapore Nonbetalactam Coated Tablets and Tablets
PT. Otsuka Indonesia Japan Nonbetalactam Coated Tablets and Tablets
Singapore
PT. Menarini Indria Laboratories Nonbetalactam Coated Tablets and Tablets
PT. Taisho Pharmaceutical
Japan External Nonbetalactam Powders
Indonesia Tbk South Korea Low Volume Oncology Injection
PT. CKD Otto Pharmaceuticals

PT. Takeda Indonesia Japan Nonbetalactam Coated Tablets and Tablets South Korea Eritropoetin Bulk
PT. Daewoong Infion

PT. Hisamitsu Pharma Japan Non-betalactam plaster

Indonesia PT Mega Lifesciences Indonesia Thailand Nonbetalactam Coated Tablets and Tablets

PT. Eisai Indonesia Japan Nonbetalactam Coated Tablets and Tablets PT. YSP Industries Indonesia Taiwan Semisolid Nobetalaktam

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 PHARMACEUTICAL INDUSTRIES - FOREIGN INVESTMENT (PMA)

Europe - 16 Companies

COUNTRY COUNTRY OF
NAME PRODUCT TYPE NAME PRODUCT TYPE
OF ORIGIN ORIGIN

PT. Boehringer Ingelheim Germany

PT. Abbott Indonesia Luxembourg Nonbetalactam Coated Tablets and Tablets Nonbetalactam Tablets
Indonesia

PT. Actavis Indonesia Netherland Nonbetalactam Tablets PT. Merck Tbk. Germany Nonbetalactam Tablets

PT. Smithkline Beecham UK Non-sterile inhalation and nasal powders

PT. Astrazeneca Indonesia Netherland Nonbetalactam Coated Tablets and Tablets
Pharmaceutical

PT Ferring Pharmaceuticals Netherland Nonbetalactam Nasal Fluids PT. Sterling Products UK

Industry Nonbetalactam Tablets
Indonesia

PT. Aventis Pharma Prancis Nonbetalactam Coated Tablets and Tablets PT. Glaxo Wellcome UK
Nonbetalactam Coated Tablets and Tablets
Indonesia
PT. B Braun Pharmaceutical Germany Large Volume Nonbetalactam Injection
Indonesia PT. Vitabiotics Healthcare UK Nonbetalactam Coated Tablets and Tablets

PT. Bayer Indonesia Germany Nonbetalactam Coated Tablets and Tablets PT. Novartis Indonesia Switzerland Nonbetalactam Coated Tablets and Tablets

PT. Beiersdorf Indonesia Germany Non-betalactam plaster PT. Nufarindo Spain Nonbetalactam Coated Tablets and Tablets

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 PHARMACEUTICAL INDUSTRIES - FOREIGN INVESTMENT (PMA)

USA- 6 Companies

COUNTRY
NAME PRODUCT TYPE
OF ORIGIN

USA
PT. Medifarma Laboratories Nonbetalactam Tablets

PT. Integrated Healthcare USA

Nonbetalactam Tablets
Indonesia

PT. Casper Pharmaceutical USA

Nonbetalactam Tablets
Industry

PT. Organon Pharma Indonesia

USA Nonbetalactam Tablets
Tbk.

PT. Pfizer Indonesia USA Nonbetalactam Coated Tablets and Tablets

PT. Pharos Indonesia USA Nonbetalactam Coated Tablets and Tablets

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 INVESTMENT OPPORTUNITIES FOR
PHARMACEUTICAL INDUSTRY IN INDONESIA

Intermediates
Industries
Predecessor in Pharmaceutical formulation
pharma ingredients industry in central and
production process eastern regions of Indonesia

Local Pharma Ingredients Ibu Kota Nusantara (IKN) as The Superhub for:
Industries
● 6 Economy Clusters
API Excipient ● Clean Technology Industry Cluster
● Integrated Pharmacy Cluster
● Sustainable Agriculture Industry Cluster
● Ecotourism and Health Tourism Cluster
● Chemicals and Chemical Derivative Products Cluster
● Low Carbon Energy Cluster

○ 2 Supporting Clusters
■ 21st Century Education Cluster
■ Smart City and Industry 4.0 Center
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 Roadmap of Pharmaceutical Products with Local Active Ingredients
THERAPEUTIC CLASS 2021 - 2025 2026 - 2030 2031 - 2035
Anti Hypertension Clopidogrel Candesartan Valsartan
Amlodipine Bisoprolol Telmisartan
Anti Hyperlipidemia Atorvastatin Rosuvastatin Pravastatin
Simvastatin
Anti Virus Entecavir Tenofovir Nevirapin
Efavirenz Remdesivir
Lamivudine
Zidovudine
Non Steroid Antiinflamation Parasetamol Meloxicam Diklofenac
Gastric Problem Omeprazole Injection Esomeprazole Injection Pantoprazole
Anti Diabetes Glimepiride Metformin Gliclazid
Acarbose
Antibiotic Ampicillin Injection Rifampicin
Kloksasilin Injection
Benzilpenicilin Injection
Sulbactam Injection
Anti Cancer Geftinib
Anti Pshycotic Risperidone
Biological Product Erythropoietin Injection Vaccines Vaccines
 Direction in Development of National Pharmaceutical Industry

Active Pharmaceutical Ingredients

PHARMA INDUSTRY
WITH IMPORTED
MATERIALS Excipients
Importing Raw
Materials

PHARMA INDUSTRY
WITH LOCAL
MATERIALS
Petrochemical Intermediate Active Pharmaceutical
Ingredients Formulation Production Distribution

RESEARCH BASED
PHARMACEUTICAL
INDUSTRY IN NEW
DRUG DISCOVERY
Research & Development Pre Clinical Trials Clinical Trials
of New Drug Discovery
 INVESTMENT OF MEDICAL DEVICES INDUSTRY IN INDONESIA

Global In Vitro Diagnostic Medical Devices

Industry in Indonesia

NAME COUNTRY OF PRODUCT TYPE

ORIGIN

Prodia Diagnostic Line Germany Clinical Chemistry

Reagent Kit,
Immuno-serology
Test System Kit

Mps Indonesia Berjaya China Contact lens

solution

PT Hisamitsu Japan Fever compress

patch

PT Standard Biosensor Korea FastClear Q Covid-

Healthcare 19 Ag

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 INVESTMENT OPPORTUNITIES FOR
MEDICAL DEVICES INDUSTRIES IN INDONESIA

01 02 03

Medication
Increasing Market Geographical Essentials
Advantage The massive need for
The IVD products market in Indonesia’s vast non-communicable
Indonesia continues to geographic region diseases test kits with a
requires accessible self- high prevalence (diabetes
grow post-covid due to mellitus, kidney failure,
diagnostic kits to reach
increased public awareness cardiac diseases, gout,
remote areas.
of health. and cancer), whether
through National Health
Insurance (JKN) or
independent.

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 INVESTING IN INDONESIA: ADVANTAGES & EXPECTATIONS

Ease of doing
business in
Indonesia
Local natural resources
processing to increase
value-added products and
grow into export-oriented
Tax holiday industry

Super Tax
Deduction

Non-fiscal incentive Increasing the

Technology and
including industry quality of local
knowledge
development area facility human resource
transfers

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 THANK
YOU

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