Tangerang. Indonesia is working to reduce its reliance on imported pharmaceutical raw materials (BBO), which currently make up 90 percent of the country’s needs, primarily from China and India.

Elfiano Rizaldi, Executive Director of the Indonesian Pharmaceutical Companies Association, praised the government’s efforts to regulate BBO imports but stressed the importance of strengthening research and development (R&D).

“Law No. 17 of 2023 on Health and Government Regulation No. 28 of 2024 aim to reduce dependency on imported chemical drug raw materials. However, increasing R&D funding from both the government and industry is crucial for supporting these efforts,” Elfiano said during a Focus Group Discussion at B-Universe Office in Tangerang Regency, Banten, on Wednesday.

Elfiano also highlighted the need for Indonesia to develop its basic chemical industry, calling for the establishment of chemical plants capable of producing pharmaceutical chemicals. He expressed confidence that Indonesia has the necessary infrastructure and human resources.

“The infrastructure and workforce are ready. The challenge now is to build a comprehensive ecosystem involving around 12 ministries and agencies,” he added.

Acting Head of the National Agency of Drug and Food Control (BPOM), Rizka Andalusia, revealed that BPOM is collaborating with industry players to develop the domestic BBO industry, aiming to cut imports by Rp 1.5 trillion through domestic production of 22 BBOs.

“Achieving this reduction within this year could significantly lower import values next year,” Rizka said.

BPOM is also preparing a Regulatory Impact Assessment with the Industry Ministry to guide import regulations for BBO, potentially benefiting the national private sector. Rizka noted that domestic manufacturers like Kimia Farma and Brightgene are already producing BBOs, which could further reduce import values.

Meanwhile, Noffendri Roestam, Chairman of the Indonesian Pharmacists Association (PP IAI), expressed concerns about the low drug prices set under the National Health Insurance (JKN) scheme, which he believes hinders R&D funding in the pharmaceutical industry.

“We hope the government will revisit and adjust JKN drug prices to provide more financial flexibility for R&D, especially for raw materials,” Noffendri said.

He also agreed with Prof. Raymond R. Tjandrawinata of Dexa Group that improved drug quality contributes to increased life expectancy in Indonesia.

“Higher life expectancy is influenced by better health and quality medications. The quality of drugs provided in Indonesia plays a crucial role in maintaining public health,” Noffendri concluded.