This is because Indonesia has had to rely on other countries to meet its requirements for pharmaceuticals and medical devices for handling COVID-19 since last year, he added.
"The COVID-19 momentum has forced Indonesia to massively transform various sectors, including the health service industry. Indonesia must be able to produce various medical devices and medicines domestically," he said during the 9th US-Indonesia Investment Summit, accessed from here on Wednesday.
President Joko Widodo has ordered all ministers to push transformation in the health sector, after realizing the sector's high dependence on foreign assistance, Pandjaitan informed.
The government has begun to make improvements by extending the capacity of laboratories for testing, supplying oxygen, and procuring medicines, both from national sources or abroad, he said.
Related news: Pandemic propels Indonesia towards multisectoral reforms: minister
"The government also continues to push for the production of vaccines and pharmaceuticals that produce therapeutic drugs for COVID-19 in Indonesia," Pandjaitan added.
The pharmaceutical industry has complex standard procedures, not to mention limited technological and expert capacity, he noted.
"So, the government has provided several incentives to investors in the pharmaceutical industry in the form of tax holidays, ease of licensing, and guarantee of government procurement, in accordance with local content requirements," he highlighted.
Other incentives include super tax reduction for the construction of research and development centers in the pharmaceutical industry, he added.
"With a population of nearly 280 million people and an expansive economy, I think a research center in Indonesia will be very important," Pandjaitan said.
He added that the current COVID-19 situation in Indonesia is much better compared to the middle of this year, when daily cases reached tens of thousands per day.
He also assured that with the existing capacity, starting from the treatment rooms, oxygen supply, and medicines, Indonesia's condition is now much better.
"We don't expect the situation in July (the peak of COVID-19 this year) to happen again, but even if it happens, the conditions in Indonesia are now much better," he added.
Related news: Jokowi seeks expediting health sector reforms amid pandemic
Translator: Ade Irma J, Mecca Yumna
Editor: Suharto
Copyright © ANTARA 2021
