The Jakarta Post
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsRegulatory issues limit RI's role in pharma value chain
CIPS is of the view that the Indonesian pharmaceutical industry has the potential to take advantage of slowing manufacturing activities in China because of restrictions during the pandemic.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Set as preferred source
W
ith the world racing to fight the COVID-19 pandemic, Indonesia may miss an opportunity to increase its role in the global value chain of the pharmaceutical industry because of regulatory issues, a think tank has said.
According to the Center for Indonesian Policy Studies (CIPS) highlighted, the lack of government enforcement on the mandatory local content for pharmaceutical products, as stipulated in Industry Ministerial Regulation no. 16/2020, has done little to spur the growth of the pharmaceutical industry.
“The problem with this kind of forced localization is that it does not actually encourage development in the industry,” Andree Surianta, associate researcher at CIPS, said on Thursday.
Meanwhile, the government’s incentives, like a tax reduction of up to 300 percent for pharmaceutical firms’ spending on research and development, also did not align with the trend in the global pharma value chain, Andree added.
Some pharmaceutical firms are outsourcing their research and manufacturing process to third parties, which means that the tax reduction might be misguided.
“This is a good initiative. However, this seems to have a traditional, integrated pharma [supply chain] model in mind,” Andree said.
