1. Market Research
  2. > Pharmaceutical Market Trends
  3. > Indonesia Pharmaceuticals & Health Care Industry Report - H2, 2013

Indonesia Pharmaceuticals & Health Care Industry Report - H2, 2013

  • April 2014
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 31 pages

This report profiles the pharmaceutical and health care industry in Indonesia, with analysis of market trends through H2 2013 and market outlook through end-2020. The report also surveys the key firms in the sector, among them Kalbe, TSP, and Kimia.

Indonesia's pharmaceutical and health care sector has recorded double-digit growth over the last few years. However, in value terms, the domestic pharmaceutical industry was minuscule in size compared to markets like the USA and Japan. Low per capita income, the lower cost of drugs, and lower penetration and accessibility of health care were the main reasons for this low figure. Hence, immense potential exists for growth in Indonesia's pharmaceutical sector. However, the sector is often plagued by regulatory flip-flops, drug approval delays, currency fluctuations, unethical practices and pricing controls.

The pharmaceutical market saw a challenging period in 2013, with growth of only 9% after growing by 15% in 2012. Lower economic growth and higher inflation led to this subdued performance. Depreciation of the IDR, higher electricity tariffs, and higher minimum wages also led to erosion in the profit margins of pharmaceutical manufacturers during 2013. However, the implementation of National Health Insurance (JKN) program by the Social Security Agency (BPJS) in 2014 is expected to significantly boost sales of drugs, particularly generic drugs. According to the Association of Pharmaceutical Entrepreneurs (GP Farmasi), the size of the pharmaceutical market is expected to record a y/y growth of 13% in 2014. Such revenue growth will also offset the recent decline in profit margins. Both domestic as well as foreign companies are gearing up and expanding their production capacities to meet the expected demand growth after the implementation of JKN.

Going forward, the market is expected to return to a double-digit growth track, thanks to government support and various macro growth drivers including the rise in per capita income, the rise in health insurance penetration, the proliferation of health care services across the remote areas, the rise in lifestyle diseases, and the increase in foreign investments and in government as well as private expenditure on health. However, frequent policy changes and rising prices of raw materials may act as deterrents of growth for this sector.

Key Points:

o This report outlines the market position and financial information for leading sectoral players, including PT Kalbe Farma Tbk (Kalbe), PT Tempo Scan Pacific Tbk (TSPC), and PT Kimia Farma (Persero) Tbk (Kimia).

o The government sector accounted for around 34% of total health care spending and the private sector for the remainder. The health care industry saw a CAGR of around 20% during the period 2006-11 and is expected to surpass USD 30bn by 2015.

o The government aims to have every Indonesian covered by health insurance before 2019 under the new scheme known as Jaminan Kesehatan Nasional (JKN), with nearly IDR 20tn (US$1.6 billion) allocated to cover premiums for the poor in 2014. The scheme was launched on December 31, 2013, by President Susilo Bambang Yudhoyono.

o Despite ongoing improvements in its infrastructure, the health care system is still struggling with the shortage of medical professionals in all segments of the health care system. As of 2012, a single physician served 4,900 citizens in the country. The government of Indonesia has targeted to bring down this figure to 2,500 at the end of its universal health coverage program.

Table Of Contents

Indonesia Pharmaceuticals and Health Care Industry Report - H2, 2013
1. Industry Profile

1.1 Sector overview

1.2 Sector size

1.3 Competitive landscape

1.4 Environmental scanning

2. Market Trends and Outlook

2.1 Key economic indicators-Indonesia

2.2 Health status indicators

2.3 Healthcare infrastructure

2.4 Investments

2.5 Market outlook

3. Leading Players and Comparative Matrix

3.1 Leading players

3.1.1 PT Kalbe Farma Tbk (Kalbe)

3.1.2 PT Tempo Scan Pacific Tbk (TSP)

3.1.3 PT Kimia Farma (Persero) Tbk (Kimia)

3.2 Comparative matrix

3.3 SWOT analysis

4. Tables and Charts

Table 1: World health financing statistics

Table 2: Functions of the BPOM

Table 3: Key financial ratios of the leading players

Table 4: Market multiples of leading players

Chart 1: Breakup of global pharmaceutical market by geography in 2012

Chart 2: Size of Indonesian healthcare industry

Chart 3: Size of Indonesian pharmaceutical industry

Chart 4: Market share of different players in the pharmaceutical sector of Indonesia

Chart 5: Position of People's Representative Council after 2009 elections

Chart 6: Per capita expenditure on health

Chart 7: Pharmaceutical market breakdown

Chart 8: Enrolment share of population in different health schemes

Chart 9: Quarterly GDP growth rate-Indonesia

Chart 10: Trade balance of Indonesia

Chart 11: Average monthly USD to IDR exchange rate

Chart 12: Government budget deficit

Chart 13: CPI Inflation during FY13-Indonesia

Chart 14: BI rate in Indonesia

Chart 15: Child mortality rate (under 5 Years) per 1000 live births

Chart 16: Maternal mortality rate per 100,000 live births

Chart 17: Infant mortality rate (under 1 year) per 1000 live births

Chart 18: Countries with highest number of people living with HIV infections

Chart 19: Deaths by tuberculosis

Chart 20: Causes of mortality in Indonesia

Chart 21: Health workforce per 1000 persons in the country

Chart 22: Number of hospital beds per 1000 persons

Chart 23: Forecast for the size of Indonesian pharmaceutical sector

Chart 24: Sales breakdown by segment

Chart 25: Net sales of Kalbe

Chart 26: Profit margin of Kalbe

Chart 27: Sales breakdown by segment

Chart 28: Net sales of TSP

Chart 29: Profit margin of TSP

Chart 30: Shareholding of Kimia

Chart 31: Net sales of Kimia

Chart 32: Profit margin of Kimia

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
PharmaPoint: Psoriatic Arthritis - Global Drug Forecast and Market Analysis to 2025

PharmaPoint: Psoriatic Arthritis - Global Drug Forecast and Market Analysis to 2025

  • $ 10995
  • Industry report
  • December 2016
  • by GlobalData

PharmaPoint: Psoriatic Arthritis - Global Drug Forecast and Market Analysis to 2025 Summary Psoriatic arthritis (PsA) is a chronic immune-mediated arthritis typically affecting the large joints, especially ...

PharmaPoint: Dyslipidemia - Global Drug Forecast and Market Analysis to 2025

PharmaPoint: Dyslipidemia - Global Drug Forecast and Market Analysis to 2025

  • $ 10995
  • Industry report
  • December 2016
  • by GlobalData

PharmaPoint: Dyslipidemia - Global Drug Forecast and Market Analysis to 2025 Summary Sales of dyslipidemia therapeutics is estimated to be approximately $11.2B across the 7MM in 2015, encompassing the ...

PharmaFocus: Tauopathies - Global Market Analysis

PharmaFocus: Tauopathies - Global Market Analysis

  • $ 9495
  • Industry report
  • February 2017
  • by GlobalData

PharmaFocus: Tauopathies - Global Market Analysis Summary Tauopathies are a class of more than 20 neurodegenerative diseases characterized by tau protein aggregation in the brain. There are currently no ...


Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.