Indofarma Boss: 90 Percent Of Indonesian Pharmaceutical Raw Materials Are Imports From China And India

Illustration. (Photo: Doc. Antara)

JAKARTA - President Director of Indofarma Tbk Arief Pramuhanto conducted a mapping of investment opportunities in the pharmaceutical industry after the COVID-19 pandemic. According to him, this mapping was carried out to find out which opportunities could be worked on.

Arief said that there were around 4 state-owned companies (BUMN), 212 private companies and 24 foreign investment companies (PMA). So, he said, the level of competition is already high. Therefore, according to him, it needs to be mapped in more detail.

"I said earlier that, like wellness, the opportunity is still big. Then there are several other classes like Ken which are also still large and there are not many players, maybe that's an opportunity for investors who want to enter the finished drug manufacturing industry," he said at the Investor Daily Summit 2021, Thursday, July 15.

Then, said Arief, the long-term opportunity for the pharmaceutical industry will lead to the need for standardized herbal medicines or phytopharmaca. According to him, domestically produced herbal medicines can be included in the e-catalog.

"Later it can be financed by BPJS. This is interesting so that not only pharmaceutical drugs can be financed by BPJS but herbal medicines can also be financed by BPJS," he said.

Then, continued Arief, regarding pharmaceutical raw materials. He said this could be an investment opportunity. Because, currently Indonesia is still dependent on pharmaceutical raw materials from China.

"How do we reduce dependence on pharmaceutical raw materials, 90 percent of which are still imported from both China and India. This is a very big opportunity," he said.

The weapon, said Arief, is also contact research (CRO) which has made many clinical trials conducted in Indonesia. According to Arief, the clinical trial market with the increase in the pharmaceutical industry will certainly increase.

"Not only pharmaceuticals actually, cosmetics can also use CRO," he said.

Then, said Arief, the next opportunity is biological products. Like, vaccines, biotechnology or antibodies. Because, until now the production is still minimal in Indonesia.

"For example, if the COVID-19 vaccine is expected to be a red and white vaccine or a BUMN vaccine, it is hoped that in the first quarter of 2022 it will enter clinical trials. So that in the second or third quarter of 2022 we can produce our own vaccine. There is no need to import the COVID-19 vaccine, " he said.