10,000 Pharmaceutical Products Need to Meet Local Content Requirements: Industry Minister

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 3 Oktober 2020
Category: News
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Minister of Industry Agus Gumiwang Kartasasmita (Photo by: Ministry of Industry Public Relations Archive)

Ministry of Industry has renewed its commitment to support the country’s pharmaceutical and medical device industry players through certification, according to Minister of Industry Agus Gumiwang Kartasasmita.

The certification, he added, is aimed at increasing the use of local products from the two strategic sectors.

The certification is also expected to boost national industry’s independence and spur its competitiveness in the global arena, he added.

“The certification is very important given that currently as many as 10,000 pharmaceutical products need to be certified to meet local content requirements (TKDN),” Agus said Saturday (3/10).

Agus has also proposed that costs for TKDN certification will be sourced from the State Budget.

“With the prepared budget, we will certainly support the industrial sector. Moreover, we have included pharmaceutical and medical device industries in additional sectors which are a priority on the road map for  Making Indonesia 4.0,” he said.

The move, he continued, also serves as proof of the Ministry’s commitment to immediately realize Indonesia’s self-sufficiency in the health sector which is of particular importance, particularly amid the current state of health emergencies.

The move is also expected to contribute to the Government’s program to reduce import rate by 35 percent by the end of 2022, he said, adding that both sectors need to be pushed for to meet domestic needs.

The Minister also pointed out that the pharmaceutical and medical device industry has seen a high demand during the COVID-19 pandemic, while other sectors had to bear the brunt of the pandemic.

The Ministry, he added, has also noted that in the first quarter of this year the chemical, pharmaceutical, and traditional medicine industries grew by 5.59 percent and manufacturing sector deposited a significant investment value amounting to Rp9.83 trillion.

“Innovation and application of Industry 4.0 in medical device and pharmaceutical industry can increase productivity,” he said, adding that domestic market is potential for various pharmaceutical products and medical devices with high local content given that it can be a preference in procurement through the national health insurance program (JKN). (BUREAU OF PUBLIC RELATIONS OF MINISTRY OF INDUSTRY/UN)



Translator: Muhardi
Reviewed by: M. Ersan Pamungkas

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