Medicinal raw materials still have to be imported from China and India, while Indonesia's pharmaceutical industry has been able to produce medicines domestically.

Jakarta (Indonesia Window) – A team from the Agency for Foreign Strategy Policy (BSKLN) of Indonesia’s Ministry of Foreign Affairs (MOFA), has visited PT. Kimia Farma Sungwun Pharmacopia (KFSP) in South Cikarang, West Java province, to observe production of medicinal raw materials.

In its press release received by Indonesia Window, the agency said the visit on Thursday (June 15, 2023) aimed to collect data for the preparation of an independent policy review under the theme ‘building the resilience of medicinal raw materials of Paracetamol Indonesia’.

The agency had the opportunity to discuss with KFSP’s president director along with his team and make observations at the medicinal raw materials production plant.

Ahmad Syofian, Head of the BSKLN Study Team said that pharmaceutical resilience has become an increasingly urgent issue, especially since the COVID-19 pandemic caused disruption of Global Value Chains (GVCs).

In conditions of global crisis, countries that dominate the pharmaceutical industry tend to reduce export supply and increase prices to secure domestic needs.

Dependence on pharmaceutical imports is also a threat to Indonesia's national health and economy, he noted.

Indonesia's pharmaceutical industry has been able to produce medicines domestically. However, 90 percent of medicinal raw materials still have to be imported from China and India.

As global uncertainty increases, Indonesia needs to boost the development of the domestic medicinal raw materials industry to build its pharmaceutical resilience.

Medicinal raw materials for Paracetamol were chosen as a role model for medicinal raw materials production development project in the country.

KFSP has been assigned by the Indonesian Government to develop domestic medicinal raw materials Paracetamol production. It was explained that the potential for alleged predatory pricing from medicinal raw materials producers who have established their industries is the main challenge for domestic medicinal raw materials development.

Indonesian pharmaceutical producers, 90 percent of which come from the private sector, certainly prefer medicinal raw materials imports because of cheaper prices.

However, KFSP remains optimistic about the development prospects of the national medicinal raw materials industry.

"As long as the business perspective is put forward, it is impossible to produce domestic medicinal raw materials," KFSP’s President Director Pamian Siregar said.

Pamian added the importance of using a national resilience approach. Various interventions from the government are also needed to make the domestic medicinal raw materials industry competitive.

In this case, the MOFA will support each of these medicinal raw materials resilience processes. The ministry will also provide benchmarking assistance with other countries which are also developing the medicinal raw materials industry.

Diplomacy will likewise be intensified to secure the supply of basic ingredients and intermediate medicinal raw materials, before the domestic pharmaceutical industry can be fully independent, he said.

Editing by Indonesia Window