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Indonesia Pharmaceutical Market Research Report to 2022: Ken Research

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What is the Potential of Indonesia Healthcare Market?

Indonesia Healthcare Market has shown a positive incline during 2012-2017 but with respect to the expanding population of Indonesia, the market is still underserved especially in the underdeveloped and rural areas as of 2017. People across Indonesia are facing several health care issues due to a sedentary lifestyle and fast food consumption habits, such as obesity, diabetes, and other cardiovascular diseases, which are demanding for technologically advanced healthcare infrastructure. The healthcare market has increased on the account of increasing healthcare facilities, innovation in pharmaceutical manufacturers and clinical laboratory services and expansion of pharmacy retail chains across the country. The market has witnessed innovation in the nutritional health segment, biopharmaceuticals, and specialty pharmaceutical products.

Indonesia Pharmaceutical Market

The report provides information on market size for Indonesia Healthcare and pharmaceutical…

Hospitals in the country contributed to the maximum share of the overall healthcare market as of 2016. Over ~% of the market revenues were generated from the hospitals’ segment followed by the pharmaceutical market with ~% in 2017.

Indonesia Healthcare market revenue has increased from USD ~ billion in 2012 to USD ~ billion in 2017 primarily due to rising prevalence of non-communicable and lifestyle diseases including diabetes, asthma and heart disorders. The industry has undergone various deregulation programs that have encouraged foreign investment in the industry. Furthermore, an increase in demand for generic medicines has led the major players in the industry to expand their production capabilities.

How Has the JKN Scheme Impacted the Indonesia Pharmaceutical Market?

The market size of the Indonesia pharmaceutical industry has increased from USD ~ million in 2012 to USD ~ million in 2017 at a CAGR of ~%. The market is in the growing stage supported by favorable government regulations and entry of foreign players in the space.

During 2017, domestic players dominate the market with a major focus on the production of generic drugs. This is driven by the implementation of a universal healthcare system. The program has led to an increased demand for generic medicines from public and private hospitals participating in the program.

Further, the industry witnessed various deregulation programs that encouraged foreign investment in the industry. For instance, the government removed the pharmaceutical industry from its negative investment list implying 100% foreign ownership is allowed. Major therapeutic segments were anti-infective due to the prevalence of communicable diseases such as TB, influenza, and others followed by Gastrointestinal, cardiovascular, Central nervous system, respiratory, musculoskeletal and dermatology.

How Have the Various Segments Performed in Indonesia Pharmaceutical Market?

Anti-infective drug sale has contributed to the largest share of ~% in the revenue share of Indonesia Pharmaceutical industry in 2017. This is mainly due to the high prevalence of bacterial and communicable diseases. This segment is dominated by prescription drugs since the patients infected with bacterial and viral diseases need to consult a doctor for proper treatment of the particular disease. This is followed by Gastrointestinal and metabolism drugs with ~%, cardiovascular system drugs with ~%, Central Nervous system drugs with ~%, Respiratory system drugs with ~%, Musculoskeletal system drugs with ~%, dermatology drugs with ~%, genitourinary and hormonal drugs with ~%, blood-related drugs with ~%, oncology with ~% and rest of the therapeutic segments with ~% of the revenue share in 2017.

Domestic players have accounted for ~% of the revenue in the Indonesia pharmaceutical market in 2017 driven by the implementation of JKN (National Health Insurance System) in 2014. The product portfolio of the majority domestic pharmaceutical companies is dominated by generic drugs. International players have captured ~% of the revenue share in 2017 driven by favorable government norms for foreign ownership.

How Major Segments in Indonesia Pharmaceutical Market have performed?

Generic drugs have accounted for the major revenue share of ~% in 2017 driven by the increased demand from government-run hospitals and clinics. The share of patented drugs has increased from ~% in 2013 to ~% in 2017. Further, ethical generic drugs have accounted for ~% of the Indonesia generic drug market revenue in 2017 followed by free sale drugs with ~% and unbranded drug sales with ~%. Prescription drug sales have accounted for ~% of the revenue share in Indonesia Pharmaceuticals Market. OTC drugs have accounted for ~% of the revenue share in 2017 as more people took to self-medication. Domestic sales have accounted for a majority revenue share of ~% in 2017 whereas exports have accounted for a small share of ~%. The domestic market is dominated by the sale of low priced ethical generic medicines. West java has accounted for ~% of the pharmaceutical companies in 2016. This is followed by Jakarta with ~%, East java with ~%, Central Java with ~% and others with ~% of the companies

What are the Major Trends and Growth Drivers in Indonesia Pharmaceutical Market?

Growth in animal pharmaceuticals has added to the overall market revenue. The animal pharmaceutical industry has benefitted from opportunities in terms of new legislation for animal pharmaceuticals. With the launch of the 11th economic package, the government has aimed to boost the domestic production of medicines’ raw materials. Moreover, the government has removed the pharmaceutical industry from its negative investment list (which lists the sectors that are closed, or partially closed, for foreign ownership) implying 100% foreign ownership is allowed. The policy also encourages joint ventures between foreign pharmaceutical companies and local ones in order to transfer knowledge and technology. In addition to this, the government is planning to offer fiscal incentives and making the investment procedure easier to attract foreign players in the industry.

The Universal healthcare system launched by the government in 2014 has led to an increase in the production of generic medicines. This has led to lower margins as people have shifted from ethical drugs to prescribed generic drugs but at the same time, the sales volume has increased. The market has witnessed a rising number of mergers and acquisitions as a part of an expansion strategy by major domestic and international players.

How is the Competitive Landscape of Indonesia Pharmaceutical Market?

There are ~ pharmaceutical companies (~ domestic and~ international companies) located in Indonesia and ~% of them are located in Java in 2016. These players compete on the basis of distribution network, product portfolio, marketing activities and research and development. The domestic players dominate the generic drug and OTC drug segment. The domestic players dominate the generic drug and over the counter drug segment. International players have better expertise, skilled labor and infrastructure to produce such medicines at competitive prices.

What is the Future Potential of Indonesia Pharmaceutical Market?

The Indonesian pharmaceutical industry is expected to increase from USD ~ billion in 2018 to USD ~ billion at a growth rate of ~%. The industry growth will be led by Indonesia’s large population and growing middle-income class, supportive government policies and higher investment in the industry. With the increase in the incidence of communicable diseases such as HIV, TB, therapeutic segments such as anti-infectives and respiratory are expected to grow. Major companies are expected to increase investment in nutritional and herbal medicines due to changing preference in the industry. Apart from manufacturing generic and patented drugs, pharmaceutical companies will shift focus to other niche segments such as combined dosages, novel drug delivery areas. Further, in order to overcome the shortcomings, Contract Development and Manufacturing Organizations (CDMOs) will emerge as an attractive resource for manufacturers seeking to expand their capacities

For More Information on the research report, refer to below link:-

https://www.kenresearch.com/healthcare/pharmaceuticals/indonesia-pharmaceutical-market/143542-91.html

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