SOUTH-SOUTH TRADE PROMOTION PROGRAMME
INDONESIA SUPPLY AND DEMAND SURVEY ON PHARMACEUTICALS AND NATURAL PRODUCTS
July 2005
Supply and demand survey on pharmaceuticals and natural products – Indonesia
The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the International Trade Centre (ITC) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. While every effort has been made to verify the information contained in this document, ITC cannot accept any responsibility for any errors that it may contain.
This report has not been formally edited by the International Trade Centre (ITC).
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Supply and demand survey on pharmaceuticals and natural products – Indonesia
The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the International Trade Centre (ITC) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. While every effort has been made to verify the information contained in this document, ITC cannot accept any responsibility for any errors that it may contain.
This report has not been formally edited by the International Trade Centre (ITC).
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Supply and demand survey on pharmaceuticals and natural products – Indonesia
Table of contents Page
I.
INTRODUCTION
1
A. B. C.
1 5 5
Objectives and scope of the report Methodology Significance
II.
SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS
III.
MAIN REPORT
10
A. B. C. D. E. F. G. H. I. J. K. L. M. N. O.
10 10 16 20 33 35 42 43 45 48 51 52 56 58 60
Industry overview Production capacity Market characteristics characteristic s External trade Standards and technical regulations Trade and industry policy environment Export policies and incentives Import practices Distribution system Pharmaceutical sales promotion and pricing Maritime transport services Packaging Export credit and finance Trade promotion Conclusions and recommendations
6
REFERENCES
70
Annex: Company/Product profile forms
73
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Supply and demand survey on pharmaceuticals and natural products – Indonesia
NOTES The following abbreviations are used: ACCSQ
ASEAN Consultative Committee for Standards and Quality
ACTD
Common Technical Dossier
ACTR
Agreement on Common Technical Requirements
APEC
Asia Pacific Economic Cooperation
ASEAN
Association of Southeast Asian Nations
ATL
Accelerated Tariff Liberalization
CEPT
Common Effective Preferential Tarriff
CIF
Cost, Insurance and Freight
EDL
Essential Drug List
FOB
Free on Board
GMP
Good Manufacturing Practices
ITC
International Trade Centre
MRA
Mutual Recognition Agreement
NEDL
National Essential Drug List
OTCs
Over-The-Counter Drugs
R&D
Research and Development
TRIPS
Agreement on Trade-Related Aspects of Intellectual Property Rights
VAT
Value Added Tax
WHO
World Health Organization
WTO
World Trade Organization
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Supply and demand survey on pharmaceuticals and natural products – Indonesia
I. INTRODUCTION A. Objectives and scope of the report This report was prepared based on the terms of reference prepared by the International Trade Centre (ITC) initially in 2004 and subsequently updated to the current year 2005. The objectives of this survey are as follows: •
•
•
To outline the current market size and be able to project the future potential To understand the complexities of the market structure and its characteristics viz. the distribution channels employed and their relative importance, layers of middlemen, etc. To highlight the Import Policy and procedures, i.e. rules and regulations, duties, customs valuation, and practices, etc.
•
To identify the major impediments affecting imports, and suggest remedial action
•
To identify the major impediments affecting exports, and suggest remedial action
•
Indicating possibilities for augmenting supplies and new investment opportunities
•
Determining technical assistance requirements in the areas of product development, packaging, market promotion, joint export marketing, export financing, costing and pricing, training in export marketing, etc.
This report consists of nine parts and appendices. The first part of the report deals with the objective, methodology and sources of information and product description. The second part concerns with the domestic industry of pharmaceutical products and materials. The third part discusses the import aspect and the fourth part deals with export aspect. The fifth part of the report concerns with the market structure and volume as well as key players. The sixth part focuses on demand analysis including issue on health condition, health system, per capita consumption of pharmaceuticals and others. Part seven covers the distribution system of pharmaceuticals while Part 8 covers the government regulation related with investment, trading and import of pharmaceuticals. Following are the 21 categories of medicines (covering 128 groups) that are manufactured in Indonesia and a subject of this survey:
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Supply and demand survey on pharmaceuticals and natural products – Indonesia
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