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Jakarta Post

Regulatory issues limit RI's role in pharma value chain

  • Dzulfiqar Fathur Rahman


Jakarta   /   Tue, July 14 2020   /  01:00 am
Drug prescription for treatment medication. Businesspeople and government officials have stated that they hope the raw material segment will further develop to cater to more than 250 million population.(Shutterstock/File)

With 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 ...