By The End Of 2011, The Indonesia Pharmaceuticals Market Is Forecast To Reach Nearly...

Thu Mar 13, 2008 10:00pm EDT

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By The End Of 2011, The Indonesia Pharmaceuticals Market Is Forecast To Reach Nearly US$3.9bn At Consumer Prices, According To The Pharmaceutical & Healthcare Report Q3 2007

DUBLIN, Ireland--(Business Wire)--
Dublin Research and Markets
(http://www.researchandmarkets.com/reports/c85958) has announced the
addition of "Indonesia Pharmaceuticals & Healthcare Report Q3 2007" to
their offering.

The Indonesia Pharmaceuticals and Healthcare Report provides
independent forecasts and competitive intelligence on Indonesia's
pharmaceuticals and healthcare industry.

The Indonesian pharmaceutical market reached an estimated US$2.6bn
in 2006, in terms of value. By the end of 2011, the market is forecast
to reach nearly US$3.9bn at consumer prices, according to the
Pharmaceutical & Healthcare Report Q3 2007. With its large population
and growing economy, Indonesia should be an attractive market, but
very low per-capita spending highlights the main obstacle to strong
sales.

With no price controls or national insurance, around 85% of drugs
are paid for out-of-pocket, this sector forms the main market for
multinationals. However, a number of the products manufactured by
large foreign drugmakers are included in the US$400mn state-run
Askeskin scheme for 60mn people on low incomes. While Indonesia runs a
national essential-drugs list, the foreign industry continues to be
frustrated over opaque inclusion criteria. Counterfeits and dubious
marketing practices are among the most obvious negatives, but efforts
are underway to reform these deficiencies.

Reinforcing the country's status as a regional manufacturing
centre, German firm Bayer has made Indonesia its Asia Pacific base for
consumer healthcare production. A portfolio of over a dozen
over-the-counter (OTC) products will be made at its plant in
Cimanggis, West Java. The medicines will then be distributed for
domestic consumption and also exported to neighbouring countries. The
author endorses this strategy and accordingly continues to view
Indonesia as a promising market, both for manufacturing and for sales.

As part of his mission to improve public health, Indonesia's
President Susilo Bambang Yudhoyono (SBY) called upon local drugmakers
in August 2007 to participate in his ultra-cheap medicine programme
and improve the quality of their products. In addition, SBY wants
domestic firms to increase output and ultimately raise export figures,
to keep pace with the rapidly expanding capabilities of India and
China.

We sympathise with the president's sentiments, but, like the
foreign multinationals, feels that government intervention in pricing
will stifle outside investment, ultimately to the detriment of
patients. The retail sector received a major boost in June 2007 when
the government launched a programme to increase the availability of
cheap, locally-made versions of patented pharmaceuticals. Under the
Apotek Rakyat (Peoples Pharmacy) scheme, restrictions on dispensing
drugs have been loosened and a network of small pharmacy outlets will
be encouraged.

Companies Mentioned:

- Combiphar PT

- Darya-Varia

- GlaxoSmithKline

- Kimia Pharma

- Merck & Co

- Novartis

- Pfizer

- PT Bio Farma

- PT Kalbe Farma

- PT SidoMuncul

- Sanofi-Aventis