The government hopes to increase locally made pharmaceutical products, ingredients and medical equipment through the 11th economic policy package, which was issued on Tuesday, a minister says.

Two hundred and six companies control 76 percent of the local pharmaceutical industry. Ninety-five companies produce 60 types of pharmaceutical products using middle- to low-tech methods. However, 90 percent of the ingredients are imported.

"Regarding the import-dominated industry and the government program to provide universal health care, the government wants medicine and its ingredients to be made locally," said Coordinating Economic Minister Darmin Nasution in Jakarta on Tuesday.

At least 939 types of medicine and supplements were used in the national healthcare program last year, he said. Most were basic remedies, such as painkillers, paracetamol and penicillin and vitamins.

Pharmaceutical sales reached Rp 62.1 trillion (US$4.6 billion) last year. '€œWe want the medicine and ingredients made locally. We will issue a presidential decree to speed up deregulation of the pharmaceutical industry,'€ Darmin said.

Five product categories will be focused on for local production, he continued, such as biotechnology, vaccines, herbal extracts, active pharmaceutical ingredient and medical devices.

The government will encourage business development in the industry through private investment, synergy between private companies with state-owned enterprises and synergy among state-owned pharmaceutical companies Bio Farma, Indofarma and Kimia Farma.

To support the use of locally produced medicine, the government has removed the pharmaceutical sector from the negative investment list, allowing foreign investors 100 percent ownership. The government will extend e-catalogue and medicinal standard usage and provide a tax holiday, a special economic zone and an integrated logistics center. (ags)

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