Keywords: Pharmaceutical, Medicine, Health, Wellness, Pharmacy
What are the opportunities of the Indonesian Pharmaceutical Industry?
Source: Agence Francais Development
In 2021, the global pharmaceuticals market is expected to grow at USD 1250.24 billion. This growth is included with a 1.8% compound annual growth rate, in which major companies in the pharmaceutical market include Pfizer, F. Hoffmann-La Roche Ltd, Sanofi, Johnson & Johnson, and Merck & Co.
This industry has been a center of focus in the COVID-19 crisis because this industry develops, produces, and markets pharmaceutical drugs for medications to cure, vaccinate, or alleviate patient symptoms following COVID-19.
Is Indonesia a prospective country for investing in the pharmaceutical industry? What are the prospects of the Indonesian pharmaceutical industry? Read more to find out!
Overview of the Indonesian Pharmaceutical Industry
In the past years, Indonesia’s pharmaceutical drug industry utilization has been the lowest compared to other neighboring markets; however, with its significant population growth and the ongoing COVID-19 pandemic, the country is seeing increasing demand for its access to safe and effective medication services. In addition to that, the Indonesian Ministry of Health is currently giving out self-medication packets for citizens who have COVID-19, which makes the need and demand for pharmaceutical medicine higher.
In the antibiotic market, other than amoxicillin, ampicillin, tetracycline, chloramphenicol, and erythromycin in Indonesia shows the largest values. Cephalosporin antibiotics are also very high in Indonesia, so it is necessary to develop the cephalosporin raw material industry to fulfill the supply in Indonesia. Since Indonesia’s import rate is still higher than its export rate, it creates an imbalance that causes a halt in the development of pharmaceutical industries in Indonesia. On the contrary, it creates a bigger opportunity for investors to create projects for pharmaceutical materials in Indonesia.
International Pharmaceutical Companies Who Have Penetrated the Indonesian Market
Given the scalability of the pharmaceutical industry and the future prospects of the Indonesian pharmaceutical industry, there are several international pharmaceutical companies who have penetrated the Indonesian market. Among them include:
- Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. In 2020, Johnson & Johnson had worldwide sales of USD 82.6 billion. In the first quartile of 2021, they were able to garner a revenue of USD 22.3 billion.
- Merck
Merck is an American multinational pharmaceutical company which develops and produces medicines, vaccines, biologic therapies, and animal health products. In 2020, its revenue reached USD 47.994 billion globally. They were able to garner EUR 17,534 million for its net sales in its Europe branch.
- Pfizer
Lately, Pfizer is in the world’s focus due to its COVID-19 vaccine. This was the first COVID-19 vaccine widely approved by health authorities and is also considered the third-largest pharmaceutical company based on prescription drug revenue. In 2020, the company generated total revenue of USD 42 billion globally.
Future Prospects of the Indonesian Pharmaceutical Industry
There are currently approximately 208 pharmaceutical industries in indonesia. Specifically, 4 state-owned corporations, 35 multinational corporations, and 169 private corporations. Seeing that most of those corporations are focused on the formulation or manufacturing of drugs, it must be understood that it causes a high demand for important pharmaceutical raw materials. Since Indonesia is still dependent on imported pharmaceutical raw materials, it could be noted that there is a great potential to invest in raw pharmaceutical materials in Indonesia.
Enter the Indonesian Pharmaceutical Industry with BRIGHT Indonesia
With the constant shift of consumer behavior and demands, it would need a lot of in-depth research about the Indonesian pharmaceutical industry. Therefore, to enter the Indonesian market, you would need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Assist you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email info@brightindonesia.net.