The Pharmaceutical Market: Indonesia

Additional Information

THE PHARMACEUTICAL MARKET: INDONESIA - REVIEW

Environmentally, Indonesia is particularly prone to natural disasters, as the recent earthquakes, tsunamis and volcanic eruptions have illustrated. Politically, a dominant feature of President Yudhoyono’s presidency has been to curb the corruption that has so frequently plagued Indonesia. Economically, Indonesia’s economy is projected to become the sixth largest in the Asia Pacific region by 2017, but if the rupiah continues to devaluate against the dollar it could affect the Indonesian pharmaceutical market in US dollar terms. Legally, Indonesia remained on the USTR’s Special 301 Priority Watch List in 2011, due to the prevalence of counterfeit pharmaceuticals. Demographically, the population will be the third largest in the Asia Pacific region by 2017.

The Indonesian Pharmaceutical Manufacturers Association (GP Farmasi) announced that 20 of its members had increased the price of certain drugs by up to 10.0%, at the start of the 2011. Members of GP Farmasi have raised their drug prices in response to rising inflation, a decision by regional authorities to increase the minimum wage and an import tax imposed on raw materials for drug manufacturing. In February 2011, the Ministry of Health announced that it would review the prices of generic drugs, in light of the fact that the increase in tax on raw materials has prompted pharmaceutical companies to raise the prices of branded drugs. Many pharmaceutical companies have stated that, in their view, the prices of generic drugs are unreasonably low.

Due to the sheer size of the population, Indonesia cannot simply be dismissed. The Indonesian pharmaceutical market is projected to grow at a high single-digit CAGR in US dollar terms during the forecast period, and it will be the sixth largest pharmaceutical market in the Asia Pacific region by 2017. In 2010, there were around 250 pharmaceutical manufacturers, with the vast majority located in Java. However, despite the country possessing huge manufacturing capabilities, the complete lack of R&D in local companies could affect the market, especially if IPR regulations were tightened. Although multinationals will be unhappy at the legislation requiring all drugs in the Indonesian market to have been manufactured in Indonesia, it could potentially reduce costs in the long term for both the manufacturer and the consumer.

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Related Pages:

Pharmaceutical Market India

Pharmaceutical Market Japan

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HIGHLY DETAILED REPORT CONTENT

EXECUTIVE SUMMARY
Including Espicom's at a glance strategic analysis and key data projections

MACROENVIRONMENT
Political, economic, legal and demographic analysis

EPIDEMIOLOGY
Disease burden and prevalence

HEALTHCARE
Organisation, expenditure, infrastructure, services and workforce

REGULATORY AFFAIRS
Regulatory developments and marketing registration/authorisation

PRICING & REIMBURSEMENT

DISTRIBUTION CHANNELS

MARKET ANALYSIS
Projections, product development, manufacturing and trade

COMPETITION
Trade associations, trade fairs, company intelligence and competitive strategies

OTC PHARMACEUTICALS

GENERIC PHARMACEUTICALS

BIOLOGICS & BIOSIMILARS

OPPORTUNITIES & CHALLENGES
Espicom's unique strategic analysis

DIRECTORY

METHODOLOGY & SOURCES