Indonesia Pushes for Increased Local Drug Production

Jakarta, VIVA – Indonesian health ministry is currently focused on boosting domestic drug production to reduce Indonesia’s dependency on imported products.

Budi Gunadi Sadikin, the Minister of Health, expressed his hope that more medical equipment and pharmaceutical industries can be established within Indonesia.

"If another pandemic arises, we can rely on our own products instead of importing – just buy our own products," he stated during the Health Innovation Festival (HAi Fest) at the Jakarta Convention Center on Friday (Nov 8).

On the other hand, Minister Sadikin clarified that the intention is not to monopolize production but to build Indonesia's health resilience.

The push to increase domestic drug production is being carried out through three main strategies.

First, by simplifying licensing processes. Second, by inviting foreign entities to collaborate with Indonesian companies.

"We’re not refusing foreign brands – we welcome them if the quality is good and the price is affordable. However, production should happen locally, in partnership with Indonesians," Minister Sadikin emphasized.

Third, the government will actively support domestic production by prioritizing locally made products in its procurement processes.

The Ministry of Health has already secured a state budget allocation of IDR 105.64 trillion for this purpose.

"So, licensing, inviting experts, easing processes, and supporting local purchases are our key steps," he added.

Additionally, the domestic drug production mechanism has been in place since President Joko Widodo’s administration through the Domestic Component Level (TKDN) program.