Foreign direct investment in chemical and pharmaceuticals in Indonesia 2017-2023

In 2023, the foreign direct investment in the chemical and pharmaceutical industry in Indonesia amounted to approximately 4.8 billion U.S. dollars. This was a slight increase compared to the previous year and represented the highest foreign direct investment in the industry in the period observed.How big is the Indonesian pharmaceutical industry?The pharmaceutical industry in Indonesia has grown at a steady pace in recent years. The industry is expected to expand to more than 4.5 billion U.S. dollars in annual revenue by 2028 from 3.6 billion U.S. dollars in 2022. The continued growth in the industry has been mainly driven by the government health insurance scheme (JKN-KIS) that covers a large portion of Indonesia’s population. In addition, the coronavirus (COVID-19) further spurred industry growth due to a significant increase in demand for pharmaceutical products. In 2021, the industry recorded its highest annual revenue growth of about 50 percent. Challenges in the Indonesian pharmaceutical industryDespite witnessing stable growth, the Indonesian pharmaceutical industry still relies heavily on imports for both raw materials and patented pharmaceutical products. This, in turn, causes the trade balance in the industry to remain in deficit, with import values far exceeding export values. These conditions make local pharmaceutical production more challenging and expensive. As a result, Indonesia depends highly on imported pharmaceutical products to meet domestic demands, which are naturally more expensive than locally produced ones.

于2023年，印度尼西亚化工及制药行业的外国直接投资额约为48亿美元。与上一年相比，这一数额略有上升，并成为观察期内该行业最高的外国直接投资额。印度尼西亚制药行业规模究竟有多大？近年来，印度尼西亚制药行业以稳健的步伐持续增长。预计到2028年，该行业的年度收入将扩展至超过45亿美元，从2022年的36亿美元增长而来。行业的持续增长主要得益于政府健康保险计划（JKN-KIS），该计划覆盖了印度尼西亚大部分人口。此外，由于对药品需求的大幅增加，新冠疫情（COVID-19）进一步推动了行业的增长。2021年，该行业录得年度收入增长率高达约50%。印度尼西亚制药行业面临的挑战尽管见证了稳定增长，但印度尼西亚制药行业仍严重依赖进口，无论是原材料还是专利药品。这导致行业贸易平衡持续处于逆差状态，进口额远超出口额。这些条件使得本地制药生产更具挑战性和成本高昂。因此，印度尼西亚高度依赖进口药品来满足国内需求，这些药品自然比本地生产的药品更为昂贵。