Wednesday, June 19, 2024 | 22:54 WIB

Govt pushes for pharma products import substitution

Pramuka Market
Pramuka Market
Pramuka Market
Pramuka Market
Pramuka Market
Pramuka Market
Pramuka Market
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Jakarta, IO – A vendor prepares medicinal products at Pramuka Market, Jakarta (30/5). The Health Ministry (Kemenkes) is aggressively pursuing increased use of domestically produced health equipment (alkes) in order to loosen import reliance.

Based on data from Kemenkes’ directorate general of pharmaceuticals and medical devices, until the end of the first semester of 2023, imported products still dominate e-catalogs with a share of 88 percent. Meanwhile, the Indonesian Medical Equipment Manufacturers Association (ASPAKI) noted that there are only 727 medical equipment manufacturers in the country, compared to the number of distributors which reaches 4,265 companies. In addition, local product permits are only 11,734, significantly less than 52,721 imported product permits.

This shows high dependence on imported products, even though the domestic market is very large. This is indicated by health spending which reached around 3 percent of GDP, while WHO guidance recommends 9 percent. This means that the prospects for the domestic medical equipment market are still wide open with promise of high growth.

However, domestic medical equipment industry players are still facing plethora of challenges, which include the availability of raw materials, production capabilities, as well as regulatory and government policy support. For this reason, synergy is needed between the government and industry players to increase domestic production capacity and reduce dependence on imports.

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Through import substitution, it is hoped that Indonesia can optimize the potential of the domestic pharmaceutical and medical equipment industry, create new jobs, enhance the independence and strengthen the resilience of the national health case sector.

(IO/Faisal Ramadhan)

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