Pharmaceutical companies from India have agreed to invest $135 million in medicinal raw materials production in Indonesia.
The agreement was reached after President Joko “Jokowi” Widodo met 20 chief executives of Indian pharmaceutical companies on Tuesday (13/12).
The investment to establish a facility to produce medicinal raw materials will be divided into two phases — in the first one, the companies will invest $35 million and in the second one $100 million, chairman of the Investment Coordinating Board (BKPM) Thomas Trikasih Lembong said, as quoted by Antara news agency.
Thomas did not disclose the names of the companies, but he said the plan was “quite concrete.”
He added that Indonesia will also look for an opportunity to invest in India’s pharmaceutical industry to strengthen the bilateral partnership.
In Indonesia, more than 90 percent of drug ingredients are imported, mainly from India and China, which exposes local producers to risks such as foreign exchange fluctuations. The local demand for medicines, on the other hand, has been increasing due to the government’s health insurance program, which has significantly broadened access to health care.