Jakarta - The Ministry of Health of the Republic of Indonesia through the Directorate General of Pharmaceutical and Medical Devices held a Business Matching activity on Tuesday (10/12/2024) in Jakarta. This event aims to bring together manufacturers of additional medicinal raw materials with the pharmaceutical formulation industry and hemodialysis fluid medical devices. This strategic step is expected to encourage the increased use of domestically produced drug additives, in order to strengthen the resilience of national pharmaceutical raw materials and increase the value of the Domestic Component Level (TKDN).

Director of Pharmaceutical Production and Distribution, Dita Novianti, explained that this activity is a concrete manifestation of the government's efforts to increase the independence of pharmaceutical raw materials.

“We want to create synergy between local producers of additional raw materials, such as pharmaceutical salt and pharma grade ethanol, and the pharmaceutical formulation industry. This aims to increase the TKDN of domestic pharmaceutical products and support national health resilience,” said Dita.

This effort is in accordance with the health resilience paradigm stipulated in Law Number 17 of 2023 concerning Health. The regulation requires pharmaceutical products and medical devices to prioritize the use of domestic raw materials. In addition, Presidential Regulation No. 126 of 2022 on the Acceleration of National Salt Development affirms that the national pharmaceutical salt demand, which averages 5,421 tons per year, must be met by local production by 2024.

Director General of Pharmaceutical and Medical Devices, L. Rizka Andalucia, highlighted the importance of accelerating the execution of this policy. “We have started a change source initiative, where imported drug raw materials are converted into local raw materials. However, the response from the pharmaceutical industry is still minimal. Even though the government has provided support, including change source financing and accelerated registration through BPOM,” she said.

Raw materials such as Dehydrated Alcohol were also a concern in this meeting. As undenatured ethyl alcohol with an alcohol content of 80% or more, the import of this material has been restricted through Government Regulation No. 46 of 2023 and Minister of Trade Regulation No. 3 of 2024. With the national production capacity of pharmaceutical salt reaching 12 thousand tons per year, the needs of the pharmaceutical industry can be met through closer cooperation between raw material producers and the pharmaceutical formulation industry.

“We hope that this business matching will result in real collaboration between related parties. The formulated pharmaceutical industry is expected to fully utilize local raw materials, while raw material producers must improve their quality and productivity to achieve efficiency,” Rizka added.

This event reflects the government's commitment in continuing the downstream and industrialization agenda, as stated in the government's Asta Cita grand vision. This policy aims to increase the added value of domestic products and reduce dependence on imported pharmaceutical raw materials.

Rizka emphasized that this effort is not only the responsibility of the government, but also requires the active role of the private sector and businesses. “We must work together to build a strong and sustainable pharmaceutical ecosystem in Indonesia. With effective execution, by the middle of next year we should already see tangible results,” she said.

In addition to encouraging the increased use of local raw materials, this meeting also aims to maintain the stability and sustainability of the national pharmaceutical industry. “The pharmaceutical formulation industry must consistently use domestic raw materials, while raw material producers need to continue to improve their quality and production capacity,” Rizka concluded.

This business matching activity is expected to be a catalyst for creating a healthy and innovative business climate, so that Indonesia can become a major player in the global pharmaceutical sector. This will not only strengthen national health security but also support Indonesia's overall economic growth.