Updated on 13 May 2016
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Singapore: The pharmaceutical market in Indonesia more than doubled from just under $3 billion in 2008 to reach approximately $7 billion in 2015 and is anticipated to increase further to $12.6 billion by 2020, driven primarily by the Indonesian government's economic and healthcare initiatives, according to research and consulting firm GlobalData.
The company's latest report states that Indonesia's pharmaceutical sector will be boosted by the establishment of a universal healthcare scheme, known as the Jaminan Kesehatan Nasional.
This was launched in January 2014 with the aim of providing health insurance to 250 million Indonesian citizens by 2019, which would make it the world's largest social health insurance.
Mr Adam Dion, GlobalData's Senior Industry Analyst, says new economic policy packages, the high prevalence of infectious diseases, widespread generic drug supply, increasing affordability of healthcare products and the large over-the-counter medicines market will also help to drive growth in Indonesia's pharmaceutical sector.
He explains: "The government implemented two economic policy packages in 2015, as GDP growth slowed and inflation increased. These policies mainly focus on raising investment in Indonesia and offering more industrial facilities to attract the investors.