The pledge was made during President Joko Widodos (Jokowis) meeting with 20 CEOs of Indian firms on Tuesday.
"In the pharmaceutical sector, some firms will build a raw materials factory, with an initial investment of $35 million in the first phase and $100 million in the second phase," Head of the Investment Coordinating Board Thomas Lembong said.
He pointed out that the investment would be made under a collaborative scheme. "It would not be a one direction (investment) from India; rather, we will also invest in India."
Thomas said the industry would have to take into account issues related to intellectual rights for certain drug formulas, adding that the cooperation would allow the country to obtain cheaper raw materials for drugs.
However, he admitted that foreign investors have complained of some obstacles to investing in Indonesia, including illegal levies and regulations that hamper the import of raw materials.
"President Jokowi has ordered further action to address the problems," he stated. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
