Rapid growth for Indonesian pharma market, but weak IP enforcement poses threat

Driven by increased government health care spending and growing life expectancy, the Indonesian pharmaceutical market value will climb from around $5 billion in 2013 to $9.9 billion by 2020, expanding at a compound annual growth rate (CAGR) of 10.2%.

According to forecasts from research and consulting firm GlobalData, this growth is due to the introduction of government health care reimbursement programs, such as Jamkesmas and the Family Hope Program. Their aim is to provide health insurance to all Indonesians by 2019.

Joshua Owide, GlobalData’s director of health care industry dynamics, says: “Patented drugs account for the majority of the Indonesian pharmaceutical market. Therapeutic segments, such as infectious and respiratory diseases, are expected to grow significantly in the future, thanks to the increasing incidence of certain communicable diseases.”