 "Indonesian pharmaceutical market to reach $9.9 bn by 2020")
Driven by increased government healthcare spending and growing life expectancy, the Indonesian pharmaceutical market is expected to reach $9.9 billion by 2020 from approximately $5 billion in 2013, at a compounded annual growth rate (CAGR) of 10.2%, according to a report of GlobalData – a research and consulting firm. This growth, added the report, is due to the introduction of government healthcare reimbursement programs, such as Jamkesmas and the Family Hope Program, which aim to provide health insurance to all Indonesians by 2019.
Joshua Owide, Director of Healthcare Industry Dynamics, GlobalData, said, “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. The generic market is also undergoing rapid expansion, boosted by government incentives and the loss of patent protection for several high-selling products. The over-the-counter drug sector reached a 48% share of the pharma market in 2013.”
However, the increasing use of generics, coupled with counterfeit medicines, could slow down the Indonesian pharmaceutical industry expansion.
According to Owide, the country’s regulatory system for Intellectual Property (IP) enforcement is problematic on a number of levels, due to inadequate observation and enforcement, and the lack of an effective customs recordal system to discourage infringement of IP rights.
“Non-efficient and non-transparent IP protection for pharmaceutical products and medical devices leaves major loopholes in Indonesia’s healthcare system. Infringement is common, and penalties include imprisonment for up to seven years and/or a significant fine, but only minor charges are imposed in practice,” said Owide.
Joshua Owide, Director of Healthcare Industry Dynamics, GlobalData, said, “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. The generic market is also undergoing rapid expansion, boosted by government incentives and the loss of patent protection for several high-selling products. The over-the-counter drug sector reached a 48% share of the pharma market in 2013.”
However, the increasing use of generics, coupled with counterfeit medicines, could slow down the Indonesian pharmaceutical industry expansion.
According to Owide, the country’s regulatory system for Intellectual Property (IP) enforcement is problematic on a number of levels, due to inadequate observation and enforcement, and the lack of an effective customs recordal system to discourage infringement of IP rights.
“Non-efficient and non-transparent IP protection for pharmaceutical products and medical devices leaves major loopholes in Indonesia’s healthcare system. Infringement is common, and penalties include imprisonment for up to seven years and/or a significant fine, but only minor charges are imposed in practice,” said Owide.