Singapore, March 14, 2008: Dublin Research and Markets has added ‘Indonesia Pharmaceuticals & Healthcare Report Q3 2007' to their offering. The Indonesia Pharmaceuticals and Healthcare Report provides independent forecasts and competitive intelligence on Indonesia's pharmaceuticals and healthcare industry.

 

The Indonesian pharmaceutical market reached an estimated $2.6 billion in 2006, in terms of value. According to the Pharmaceutical & Healthcare Report Q3 2007, the market forecasts to reach nearly $3.9 billion at consumer prices, by the end of 2011. With its large population and growing economy, Indonesia should be an attractive market, but very low per-capita spending highlights the main obstacle to strong sales.

 

With no price controls or national insurance, around 85 percent of drugs are paid for out-of-pocket; this sector forms the main market for multinationals. However, a number of the products manufactured by large foreign drug makers are included in the $400 million state-run 'Askeskin scheme' for 60 million people on low incomes. While Indonesia runs a national essential-drugs list, the foreign industry continues to be frustrated over opaque inclusion criteria. Counterfeits and dubious marketing practices are among the most obvious negatives, but efforts are underway to reform these deficiencies.

 

Reinforcing the country's status as a regional manufacturing center, German firm Bayer has made Indonesia its Asia Pacific base for consumer healthcare production. A portfolio of over a dozen over-the-counter (OTC) products will be made at its plant in Cimanggis, West Java. The medicines will then be distributed for domestic consumption and also exported to neighboring countries. The author endorses this strategy and accordingly continues to view Indonesia as a promising market, both for manufacturing and for sales.

 

As part of his mission to improve public health, Indonesia's President Susilo Bambang Yudhoyono called upon local drug makers in August 2007 to participate in his ultra-cheap medicine program and improve the quality of their products. In addition, Mr Susilo wants domestic firms to increase output and ultimately raise export figures, to keep pace with the rapidly expanding capabilities of India and China.