Indonesia Still Imports Pharmaceutical Raw Materials, Mostly from India and China

JAKARTA - Indonesia is said to still be dependent on importing pharmaceutical raw materials from several countries. These countries include India and China.

According to the Ministry of Industry (Kemenperin), approximately 85 percent of pharmaceutical raw materials are still imported from these two countries.

"Currently, around 85 percent of our pharmaceutical raw materials are imported, primarily from India and China," said Minister of Industry Agus Gumiwang Kartasasmita in a written statement quoted on Saturday, November 15.

Agus explained that Indonesia has great potential to produce medicinal raw materials from local natural resources, such as medicinal plants and essential oils found throughout the region.

"This potential is crucial for strengthening the structure of the national pharmaceutical industry, so that Indonesia is not solely dependent on imported raw materials but is also able to meet domestic needs through its own production," he said.

He cited the example of active ingredients based on medicinal plants, such as meniran, which has been exported to the UK. According to Agus, the domestic pharmaceutical industry can already meet high standards, given that the UK has one of the strictest drug regulations.

"This is proof that our research and innovation capabilities are beginning to be recognized globally," said Agus.

Meanwhile, the chemical, pharmaceutical, and traditional medicine industry sector continues to record solid growth. According to data from the Central Statistics Agency (BPS), the sector grew 11.65 percent year-on-year in the third quarter of 2025, surpassing the national economic growth of 5.04 percent.

Investment in this sector reached IDR 65.9 trillion, with exports valued at US$15.22 billion. This contribution also strengthens the performance of the national manufacturing industry, which contributes 17.39 percent to GDP and employs more than 20 million workers.

"This achievement demonstrates that the manufacturing industry sector, including pharmaceuticals and cosmetics, continues to be a major pillar of the national economy. We need to maintain this momentum by strengthening the supply chain and adding value domestically," he explained.

According to the former Minister of Social Affairs, the development of the national pharmaceutical and cosmetics industry must go hand in hand with innovation and the implementation of sustainability principles.

The Ministry of Industry continues to strengthen the green industrial ecosystem, promoting energy efficiency, the use of environmentally friendly raw materials, and the application of green chemistry in production processes.

Furthermore, the cosmetics and natural medicine industries are preparing for the implementation of mandatory halal certification in October 2026, which will strengthen the position of national products in the global market.