JAKARTA (Yosefardi) – Representatives of the Indonesian Pharma Industry declared that the government must offer incentives and widen the door to foreign direct investment in the country’s pharmaceutical industry to reduce dependence on imported raw material for medicine.

Meanwhile, in a bid to encourage the industry, the Investment Coordinating Board (BKPM) gauged a plan to allow foreign investors to hold more shares in pharmacy companies, from currently a maximum of 85%, to 100%.

The Indonesian Pharmaceutical Association (GP Farmasi) business development committee head Vincent Harijanto acknowledged that most raw material are imported to produce medicine. At the same time he is optimistic that the country can become a production base for such overseas manufacturers given its large market, including toll manufacturing.

Indonesian Health Ministry data show that the number of pharmacy companies stood at 239 last year, up from 206 in 2013. GP Farmasi projected investment in the pharmacy sector to reach Rp215 trillion (US$15.34 billion) by 2025. The sector itself had potentials worth up to Rp700 trillion, which consisted of Rp450 trillion for the domestic market and Rp250 trillion in exports, by 2025.