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JAKARTA - The Indonesian government prioritizes the development of the pharmaceutical and medical device industry so that it can be more globally competitive.

This is in accordance with the direction of the Making Indonesia 4.0 roadmap, RIPIN 2015-2035, the Job Creation Law, and the Program to Improve the Use of Domestic Products (P3DN).

Moreover, Indonesia is targeted to become a manufacturing hub for the pharmaceutical and medical device industry.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said, there are several main factors that make Indonesia attractive to manufacturers of medical devices, including large markets that continue to grow, the population of the younger generation, the increasing middle class, the government's pro-business policies, and the availability of skilled industrial workers.

"Indonesia will be an attractive destination for medical device investors. In recent years, there has been a significant increase in the number of health equipment producers operating in Indonesia," said Minister of Industry Agus in a written statement received by VOI, Friday, October 6.

Agus said the growth of the medical device industry in Indonesia is growing rapidly.

In 2021, the market is worth USD 3.5 billion and is estimated to grow to USD 6.5 billion by 2026.

In order to support the import substitution policy, the Ministry of Industry continues to open up promising opportunities for companies to invest in the raw material sector for the pharmaceutical and medical device industry.

These efforts are considered to strengthen the manufacturing structure in the country so that it can be globally competitive.

To achieve this target, one of the key steps is to provide incentives to spur investment in research and development in the pharmaceutical and medical device industry sector.

"This incentive aims to attract more investment in these sectors and encourage the development of new and innovative products that can improve the results of health services for the Indonesian people," said Agus.

In addition to research and development incentives, the government also continues to prioritize the development of local production capacity for essential drugs and medical devices.

"This includes efforts to attract more investment into this sector, as well as incentives for local producers to improve their facilities and improve their production capabilities," he added.


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