Global Life Sciences Cluster Report 2011 - Jones Lang LaSalle

0.1%
R&D expenditure
(% of GDP, 2005)
Emerging cluster
Indonesia
205
Researchers in
R&D (per million
people, 2002)
Reflecting the rising disposable incomes of the population, Indonesia’s
pharmaceutical sector has seen double digit growth since 2009 and
expects 14 percent growth for 2011. Change in legislation regarding
investment will give the industry renewed growth.
Overview
13.0%
High technology
exports (% overall
exports, 2009)
88 Asia Pacific | Jones Lang LaSalle
2.4%
Total health
expenditure
(% of GDP, 2009)
The value of the market, estimated at Rp 34,508.8 billion
($4 billion) 1 in 2010 with 10 percent CAGR in the last five years,
remains very small for a country of 240 million people. The
sector is held back by a lack of local raw materials, increased
competition in the generic drugs market, regulatory barriers
against international investment, and a lack of innovation.
However, economic prospects and changes in lifestyle added
to the sheer size of the population make the Indonesian
pharmaceutical market attractive.
36
World economic
forum’s innovation
rank (out of 142)
Of the roughly 200 pharmaceutical manufacturers, the majority
located in Java, the top 20 companies account for 80 percent
of total production. The industry is largely domestic; four
state-owned enterprises play an important role in generics and
vaccine production through Kimia Pharma, Indofarma and Bio
Farma. Seven out of the top ten companies are local, with the
leader, Kalbe Pharma, holding a 14 percent share.
Indonesia imports more than 90 percent of the pharmaceutical
raw materials it needs and exports of pharmaceutical products
are very limited, with more than 75 percent of locally produced
drugs consumed domestically. Exports might increase under
terms of the ASEAN Free Trade Area (AFTA).
Tof C