Jakarta (ANTARA) - The Industry Ministry will support certification for the local content level (TKDN) of pharmaceutical products and healthcare equipment to bolster the national industry's self-reliance and global competitiveness.

"Certification is crucial since currently, we have 10 thousand pharmaceutical products that would require certification demonstrating the local content of the products," Industry Minister Agus Gumiwang Kartasasmita noted in a statement here on Saturday.

The minister suggested state budget allocation for the certification.

"This is especially since the pharmaceutical and healthcare equipment industry had been included in the additional list of priority sectors in the Making Indonesia 4.0 roadmap," he pointed out.

The minister opined that Indonesia's self-reliance in the pharmaceutical and healthcare equipment industry was deemed crucial, especially under the health emergency scenario.

The industry witnessed a sharp spike in demand during the COVID-19 pandemic, while other sectors were severely impacted.

The Industry Ministry’s data indicated a positive growth of 5.59 percent in the chemical, pharmaceutical, and traditional medicine industry in the first quarter of 2020.

The chemical and pharmaceutical industry contributed significantly to the country's investment, with Rp9.83 trillion of investment during the period.

Kartasasmita called for encouraging the pharmaceutical and healthcare equipment industry to meet the domestic demand. The industry's self-reliance is expected to help the country reduce imports to 35 percent by the end of 2022.

"Innovation and the implementation of industry 4.0 in the pharmaceutical and healthcare equipment industry would boost productivity," he affirmed.

Industry Minister’s Regulation No. 16 of 2020 stipulates that the local content level of pharmaceutical products will employ the process-based method rather than the cost-based system.

The process-based method will take into account the research and development conducted by the industry and maintain the confidentiality of the formula, he added. Related news: Minister supports plan to substitute imported pharmaceutical products
Related news: Ministry eyes 0.40-percent growth pharmaceutical, textile industries


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Translator: Sella P Gareta, Sri Haryati
Editor: Suharto
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