Indonesia’s pharmaceutical manufacturing capabilities have expanded significantly, with ProSpace Indonesia’s Healthcare Industry Report indicating that domestic production now meets 78% of national drug requirements, up from 63% in 2023. Investment in pharmaceutical manufacturing reached $1.9 billion in 2024, reflecting growing confidence in the sector.
Active pharmaceutical ingredient (API) production shows the most dramatic improvement, with 47 new APIs manufactured domestically since the government launched its pharmaceutical independence initiative. Meanwhile, vaccine manufacturing capacity has doubled, with Indonesia now producing COVID-19, influenza, and dengue vaccines for domestic use and export.
“The pandemic fundamentally changed Indonesia’s approach to pharmaceutical manufacturing, prioritizing supply security alongside cost considerations,” explains Dr. Rahmat Hidayat, Healthcare Industry Analyst at ProSpace. “The resulting ecosystem is more resilient and increasingly innovation-oriented.”
Research and development investments have increased by 87% since 2023, with 23 Indonesian pharmaceutical companies now conducting clinical trials for novel formulations and biosimilars. University-industry partnerships have strengthened, with five collaborative research centers established.
Export values for pharmaceutical products reached $820 million in 2024, primarily to ASEAN, Africa, and Middle Eastern markets. Meanwhile, the domestic market continues to expand at 7.3% annually as health insurance coverage improves access.
Regulatory reforms have accelerated approval processes for locally manufactured products while maintaining quality standards, reducing time-to-market by an average of 7 months.
For pharmaceutical industry insights: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates