Over the years pharmaceutical companies have continuously come up with new drugs to control and treat diseases as well as mitigate patients’ suffering. New diseases, however, have also continuously been identified. Therefore, IPMG members are committed to finding new drugs to treat them.
According to the Ministry of Health data in 2013, there were 206 pharmaceutical companies operating in Indonesia. The national average annual growth in prescription drugs sales is estimated at 12%-13%.
Today, Indonesia’s pharmaceutical market value is estimated at USD 6.24 billion, reflecting pharmaceutical spend of USD 26 per capita per annum, with national companies controlling 75% of the market share. Ethical drugs contributed 55%, or USD 3.2 billion, to the total market, while the over-the-counter drugs made up the remaining 41%, or USD 2.2 billion.
However, the country’s ethical drugs industry is expected to see a decline in sales next year as more people will be turning to generics under the National Health Insurance (JKN) scheme, a government program which promoted the prescription of generic medicines. Another contributing factor is the expected increase in production cost due to the fact that 95% of raw materials are still imported.
In 2015, the country’s pharmaceutical sales-to-GDP ratio is forecasted to shrink to 0.57% despite an expected increase in pharmaceutical sales to USD 6.89 billion from USD 6.18 billion in 2014. Pharmaceutical sales per capita is estimated to go up to USD 26.9 billion in 2015 from USD 24.5 billion in 2014. The pharmaceutical sales-to-health spending ratio is predicted to drop from USD 21.4 billion in 2014 to USD 20.5 billion next year.
Other Health Data