The national pharmaceutical industry is preparing for the ASEAN free trade within the framework of ASEAN Economic Community (AEC) 2015. Preparations were mostly done on improvement of technological capabilities in order to compete with foreign pharmaceutical industry. Technological improvement is also useful for production efficiency. Data of Indonesian Pharmaceutical Association (GP Farmasi) mentioned that the pharmaceutical industry in Indonesia has been gradually making investment of around Rp 3.5 trillion in facing opportunities and challenges ahead of AEC 2015. The investment is used for setting up new industrial units, significant renovations in order to increase production capacity and human resource development. Hopefully, with the implementation of AEC, pharmaceutical industry can be a host in its own country, will still exist, and has high competitiveness.
Of course, there are still many things that must be addressed by the national pharmaceutical industry in order to deal with AEC 2015. Executive Director of GP Farmasi, Darodjatun Sanusi, in Jakarta, on Friday, April 25), admitted that currently Indonesia is still inferior in terms of pharmaceutical industry growth compared to Vietnam. However, at the time of the implementation of AEC 2015, he was optimistic that the industry is expected to grow to 42% - 45% of the total ASEAN market. "The pharmaceutical industry in the country will be tightly competing with Vietnam in seizing market at the time of the implementation of AEC 2015," said Sanusi.
Sanusi said that the growth of the pharmaceutical industry market in ASEAN countries on average per year during the past six years is that Vietnam is able to grow by more than 20%, followed by Indonesia which recorded a 12% - 15% growth. The growth of the domestic pharmaceutical market in 2013 ranged between 9% and 12%. The target of growth of this industry in 2014 is 13% -14%. He said that total Indonesian domestic market of approximately 65% -67% comprises of local industry products, while foreign pharmaceutical industry from foreign investment (FDI) is about 33% - 35%. He added that investment in the pharmaceutical sector is also earmarked for the implementation of National Health Insurance Program (JKN). Sanusi said that along with the implementation of the program of Health Social Security Provider (BPJS) this year, projection of sales turnover of drugs would increase compared to last year.
According to Sanusi, the weakening of the rupiah against the U.S. dollar (USD) has a major effect on the production of drugs. In fact, drug manufacturers last year were forced to raise the price of drugs by 3% - 7%. But, the rise in drug prices depends on each company in raw materials supply. That is, a company that has been stocking raw materials prior to the weakening of the rupiah will sell the products at a fixed price.
He asked the government to provide acceleration and ease in obtaining a registration number or Distribution License Number (NIE) for the domes tic pharmaceutical industry. According to him, there needs to be an intensive guidance and direction, especially in terms of acceleration of production permit for industries that made an investment to improve its ability in the latest GMP (Good Drugs Manufacturing Practices). For Sanusi, the primary key in facing AEC 2015 is maximum control of the domestic market and increase of competitiveness to enter the regional market.
Meanwhile, Minister of Health, Andi Walinono Nafsiah Mboi, said that when the national pharmaceutical industry is able to control 70% of the total domestic pharmaceutical market whose value reached Rp44 trillion per year, he will be proud of the success of the domestic pharmaceutical industry in the midst of flow of imported health products.
Nafsiah also appealed to pharmaceutical entrepreneurs to participate in government program, i.e. even distribution of availability of medicines to remote areas in Indonesia in relation to the application of JKN. For the Minister of Health, AEC 2015 is an opportunity and a challenge. It is said that technological advances and socio-political development is a challenge that must be handled. The pharmaceutical industry is required to improve its ability to meet the standards in ASEAN to work professionally in facing competition with imported products. (E)
Business New - April 30, 2014