Ahad 17 Apr 2016 18:46 WIB

BPKM eyes German pharmaceutical companies to invest in Indonesia

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Obat-obatan kini juga bisa dibeli secara daring atau online.

REPUBLIKA.CO.ID, JAKARTA -- The Investment Coordinating Board (BKPM) will invite German pharmaceutical companies to invest in Indonesia when President Joko Widodo (Jokowi) visits Germany as part of his four-European nation tour this month.

"We will invite German pharmaceutical companies to expand their investment and make new investment in Indonesia as Germany is the world's fourth largest source of investment in the pharmaceutical sector, with a total investment of US$4.33 billion," BKPM Chief Franky Sibarani said in a press statement released on Sunday.

Several German pharmaceutical companies have started realizing their investment plan in Indonesia and are now in the process of constructing their plants, he said.

He believed that Indonesia has the potential to become a large market for pharmaceutical products.

"The Indonesian market for pharmaceutical products has the potential to double in 2018 from 2013 and to make the country the world's 20th largest pharmaceutical producer due to the growth of middle class people," he said.

Meanwhile, per capital health fund in Indonesia increased to US$108 in 2012 from US$68 in 2008. However, it is still lower than those of Malaysia (US$410), Thailand (US$215), and the Philippines (US$119).

He said the government also has opened investment opportunity, particularly in the industry which produces raw materials for the production of medicines by allowing foreign investors to hold shares by up to 100 percent compared to 85 percent previously.

The policy is expected to increase the competitiveness of investment in the pharmaceutical industry, he said.

Data from the BKPM show that domestic investment commitment in the pharmaceutical sector in 2015 reached Rp5.14 trillion, up from Rp2.47 trillion in 2014. Meanwhile, foreign investment commitment in 2015 reached US$106 million, up from US$46 in 2014.

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