Jakarta. The conflict in the Middle East is sending shockwaves across multiple sectors, including healthcare, as rising oil and gas prices, currency depreciation, and supply chain disruptions force industry players to adjust strategies to stay resilient.

Head of Indonesia’s Food and Drugs Agency (BPOM), Taruna Ikrar, acknowledged that ongoing geopolitical tensions in the Middle East are having a significant impact on the domestic pharmaceutical industry, particularly due to continued reliance on petrochemical-based raw materials.

“More than 50% of drug packaging is based on petrochemicals. Around 30% of chemical drug ingredients also come from similar derivatives, including paracetamol and ibuprofen,” Taruna said following a meeting with Commission IX of the House of Representatives in Jakarta earlier this week.

BPOM said that higher global oil prices are directly affecting drug production costs. While medicine supplies remain stable, the agency has introduced two key mitigation measures: regulatory easing for drug packaging and diversification of raw material import sources.

Pharmaceutical companies are now allowed to adjust packaging types without undergoing lengthy procedures, while still maintaining drug safety and stability standards. Packaging accounts for about 30% of total drug costs, making the relaxation policy a crucial step in containing expenses. Indonesia is also expanding cooperation with countries including the United States, Pacific nations, and Russia to secure alternative raw material supplies.

These mitigation efforts are seen as critical to ensuring the healthcare industry remains stable, given its essential role in maintaining public health services across Indonesia, while also contributing significantly to GDP growth and employment.

Health Minister Budi Gunadi Sadikin reiterated the government’s commitment to strengthening the national health system while expanding its economic contribution.

“The Ministry of Health has three main priorities over the next five years: improving access to quality and affordable healthcare, strengthening health system resiliency, and ensuring the health sector contributes to GDP growth and job creation. The private sector plays a very important role in driving this development,” he said.

Indonesia’s healthcare industry is entering a more mature and selective phase, where growth is no longer driven solely by expansion or patient volume, but increasingly by service quality, patient safety, and long-term sustainability.

Demographic shifts are further reshaping the sector, with a growing urban middle-class population, rising chronic disease prevalence, and an aging society increasing demand for integrated and continuous healthcare services. President Director of PT Bundamedik Tbk, Agus Heru Darjono, said the industry must adapt strategically to these changes.

“As the healthcare industry enters a more mature phase, differentiation is no longer defined by rapid expansion, but by consistent service quality and patient safety over the long term,” he said.

Equal Access and Distribution Challenges
Access to healthcare services remains heavily dependent on equitable distribution of medicines and medical devices. With 38 provinces stretching across the Indonesian archipelago, disparities in infrastructure, healthcare workforce availability, and logistics continue to pose challenges.

Indonesia’s geography—comprising thousands of islands and limited transport connectivity in remote areas—remains a major obstacle in ensuring consistent distribution of pharmaceutical and medical products nationwide.

To address this, PT Medela Potentia Tbk (MDLA) is expanding its healthcare logistics hub in Medan through a new larger warehouse facility developed by its subsidiary PT Anugrah Argon Medica (AAM). The facility is targeted for completion in the fourth quarter of this year and is expected to strengthen pharmaceutical and medical device distribution across the region.

“This logistics hub reflects our commitment to expanding distribution reach and ensuring high-quality healthcare products are available across Indonesia. We believe strong and extensive coverage is key to successful distribution,” said AAM President Director Juliwaty.

AAM, part of MDLA, is a healthcare distribution company specializing in pharmaceuticals, medical devices, and global health products. With more than 45 years of experience, it operates a nationwide distribution network supported by two national distribution centers, dozens of branch offices, warehouses, and sales points across Indonesia.

The company holds multiple international certifications, including WHO Good Distribution Practice (GDP), BPOM standards (CDOB and CDAKB), halal certification from LPPOM MUI, ISO 9001, and Authorized Economic Operator (AEO). It also has cold chain capabilities for vaccines and biologics.

Juliwaty said trust remains the cornerstone of AAM’s operations, supported by partnerships with more than 70 national and global principals and distribution services reaching hospitals, pharmacies, and modern retail outlets.

“Through this network, we ensure timely availability of healthcare products in line with quality standards, while expanding access to healthcare services for the wider public,” she said.