Indonesia’s pharma sales-to-GDP ratio expected to shrink in 2015

At present, Indonesia’s pharmaceutical market value is estimated at $6.24 billion, reflecting pharmaceutical spend of $26 per capita per annum.

National companies control 75% of the market share, according to the Indonesian trade group the International Pharmaceutical Manufacturers Group (IPMG). Ethical drugs contributed 55%, or $3.2 billion, to the total market, while the over-the-counter drugs made up the remaining 41%, or $2.2 billion.

However, the country’s ethical drugs industry is expected to see a decline in sales this year as more people will be turning to generics under the National Health Insurance (JKN) scheme, a government program which promoted the prescription of generic medicines. Another contributing factor is the expected increase in production cost due to the fact that 95% of raw materials are still imported.