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The Pharmaceutical Market: Indonesia
Management Report
Published: January 2010
Pages: 56
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 595.00 Buy Now!
Research from: Espicom
Sector: Prescription Medicines
Espicom’s in-depth pharmaceutical market reports are ideal for executives wanting to understand the key drivers in pharmaceutical markets and have access to a wealth of statistical data. Each report opens with an outlook section that provides analysis of the market, 5-year market forecasts, national data projections, market outlook and key developments such as regulation, pricing/reimbursement, intellectual property, health facilities and government policy. The report also provides extensive background information, population trends, health status, health expenditure, organisation & administration, hospital services, medical personnel, healthcare development, market access information, trade data for raw materials and finished products and essential industry contacts. Included with the report are 3 free quarterly updated outlook reports, enabling you to keep up to date with market developments for a year.
Espicom's highly regarded world pharmaceutical market reports have been redesigned to provide enhanced strategic intelligence in a user-friendly format. Each report provides in-depth information, setting the pharmaceutical market in context. The reports provide:
Five-year projections for economic, demographic, health expenditure, health workforce and pharmaceutical market indicators.
Specialised intelligence on OTCs, generics, biologics and biosimilars.
Exclusive economic and demographic data from the Economist Intelligence Unit (EIU) for each market in the series.
A separate statistical health file, comprising health expenditure, health infrastructure, health services and health personnel.
The reports are updated quarterly, providing you with the latest information for a full year. In addition, the service will keep you up to date with market and industry news on a regular basis.
INDONESIA - MARKET REVIEW
Indonesia is attempting to reform aspects of its healthcare sector, and its health expenditure will nearly double in the forecast period. A new public health insurance programme for the poor was started in 2008 by the Health Ministry. The major change is that it no longer uses the services of Askes, and that the money for the programme is now channelled directly from the State treasury to 842 participating hospitals. This is a serious effort to try and curb corruption, which is endemic in the country. In October 2008, work started on a US$677.9 million ‘medical city’, which will be built on a 72-hectare area near Jakarta. The Health Ministry hopes the Medical City will prevent local patients from going overseas to neighbouring countries for treatment; around 100,000 Indonesians went abroad for treatment over the past ten years. In November 2009, the health minister announced that the government will address the shortage of doctors in remote areas of the country. The government would offer special facilities to doctors, specialists and other medical workers who are willing to serve in remote and disadvantaged regions.
The Indonesian OTC market has a double-digit growth rate according to some estimates, which can be attributed to a number of factors that will continue to make it an attractive market. The first of these is that as Indonesia is generally a poor country, its citizens will continue to self-medicate. This can also be linked to a long history of self-medication in the country, albeit with traditional Indonesian medicines. Another factor that will help the OTC market grow is the fast-growing pharmacy sector, helped by companies such as Apotek K-24 and Century. Companies such as these have not only made OTC products more accessible and affordable, but they have also increased consumers’ knowledge of drugs, and their confidence to self-medicate. The success of pharmacy companies such as Apotek K-24 with franchising has forced the state-owned company, Kimia Farma, to follow suit. This is likely to increase sales of OTC products throughout Indonesia, making it an attractive market.
Due to the sheer size of the population, Indonesia cannot simply be dismissed. The country has a massive generics market, which is likely to see consolidation in 2010 as larger companies, such as Kalbe Farma, seek to maximise profits through acquisitions of smaller domestic companies. However, despite the country possessing huge manufacturing capabilities, the complete lack of R&D in domestic companies could cause the market to stagnate, especially if IPR regulations were tightened. Although multinationals will be unhappy at the new legislation requiring all drugs in the Indonesian market to have been manufactured in Indonesia, it could potentially reduce costs in the long run for both the manufacturer and the consumer. Although Indonesia is a poor country, foreign aid and government investment is improving the lives of many citizens, which will result in a greater access to affordable drugs. The balance of pharmaceutical trade remains negative, and is likely to grow throughout the forecast period.
Five-year projections for economic, demographic, health expenditure, health workforce and pharmaceutical market indicators.
Specialised intelligence on OTCs, generics, biologics and biosimilars.
Exclusive economic and demographic data from the Economist Intelligence Unit (EIU) for each market in the series.
A separate statistical health file, comprising health expenditure, health infrastructure, health services and health personnel.
The reports are updated quarterly, providing you with the latest information for a full year. In addition, the service will keep you up to date with market and industry news on a regular basis.
INDONESIA - MARKET REVIEW
Indonesia is attempting to reform aspects of its healthcare sector, and its health expenditure will nearly double in the forecast period. A new public health insurance programme for the poor was started in 2008 by the Health Ministry. The major change is that it no longer uses the services of Askes, and that the money for the programme is now channelled directly from the State treasury to 842 participating hospitals. This is a serious effort to try and curb corruption, which is endemic in the country. In October 2008, work started on a US$677.9 million ‘medical city’, which will be built on a 72-hectare area near Jakarta. The Health Ministry hopes the Medical City will prevent local patients from going overseas to neighbouring countries for treatment; around 100,000 Indonesians went abroad for treatment over the past ten years. In November 2009, the health minister announced that the government will address the shortage of doctors in remote areas of the country. The government would offer special facilities to doctors, specialists and other medical workers who are willing to serve in remote and disadvantaged regions.
The Indonesian OTC market has a double-digit growth rate according to some estimates, which can be attributed to a number of factors that will continue to make it an attractive market. The first of these is that as Indonesia is generally a poor country, its citizens will continue to self-medicate. This can also be linked to a long history of self-medication in the country, albeit with traditional Indonesian medicines. Another factor that will help the OTC market grow is the fast-growing pharmacy sector, helped by companies such as Apotek K-24 and Century. Companies such as these have not only made OTC products more accessible and affordable, but they have also increased consumers’ knowledge of drugs, and their confidence to self-medicate. The success of pharmacy companies such as Apotek K-24 with franchising has forced the state-owned company, Kimia Farma, to follow suit. This is likely to increase sales of OTC products throughout Indonesia, making it an attractive market.
Due to the sheer size of the population, Indonesia cannot simply be dismissed. The country has a massive generics market, which is likely to see consolidation in 2010 as larger companies, such as Kalbe Farma, seek to maximise profits through acquisitions of smaller domestic companies. However, despite the country possessing huge manufacturing capabilities, the complete lack of R&D in domestic companies could cause the market to stagnate, especially if IPR regulations were tightened. Although multinationals will be unhappy at the new legislation requiring all drugs in the Indonesian market to have been manufactured in Indonesia, it could potentially reduce costs in the long run for both the manufacturer and the consumer. Although Indonesia is a poor country, foreign aid and government investment is improving the lives of many citizens, which will result in a greater access to affordable drugs. The balance of pharmaceutical trade remains negative, and is likely to grow throughout the forecast period.