Vision Group Report: Invigorating the Indonesia-EU Partnership
Vision Group Report: Invigorating the Indonesia-EU Partnership Vision Group Report: Invigorating the Indonesia-EU Partnership
There is remarkable scope for cooperation between Indonesia and the EU in the pharmaceutical sector. Combining vast natural and human resources of Indonesia with the know-how and technology of European investors would result in an increase in the competitiveness of pharmaceutical companies in Indonesia. The EU is a big and growing market for Indonesian pharmaceutical products. EU pharmaceuticals market is the world’s second largest after the USA. Around 590 billion USD was spent on medicines in 2007 in Europe and this amount will likely continue to increase as the population ages. Overall, in 2007, the market for prescription and non-prescription medicines for human use in the EU was worth 189 billion USD at ex-factory and 293 billion USD at retail prices. The EU market (extra EU imports) has substantially grown, 2 times during the last 10 years. Around 80% of pharmaceuticals imports to the EU come from Switzerland and the USA. Indonesia only provided 0.02% of EU imports in 2010. 90 Source: Eurostat. XIX PHARMACEUTICALS Indonesia's pharmaceuticals exports to the EU 20% 13% 4% 63% Medicaments for retail sale Alkaloids of cinchona and their derivatives Medicaments containing vitamins for retail sale Other
Herbal medicine is one area where Indonesia could create a competitive advantage in the EU market, following increased interest in ‘alternative medicines’ in the EU (and growing imports of related products), coupled with a well developed industry in Indonesia and availability of resources. Typical ingredients for common recipes include varieties of ginger; spices such as nutmeg, cardamom, cumin and cloves; certain chillies; and fruits like papaya and banana. The availability of raw materials to make traditional herbal medicine is relatively abundant in Indonesia. The results of studies conducted by the Indonesian Institute of Science showed that 30,000 of the 40,000 available species of world medicinal plants are found in Indonesia. Many countries in Asia, like India, Singapore, and Thailand benefit from medical tourism. Indonesia could also become a medical tourism destination in the future, if it would invest in good quality medical service with the help of FDI. The market size of pharmaceutical products in Indonesia is estimated to be around US$ 3.9 billion in 2010, with an impressive average annual growth of 10% in the last five years. The country possesses huge manufacturing capabilities. The Indonesian pharmaceutical industry consists of chemical-pharmaceutical and non-chemical traditional (herbal) medicine manufacturers. The market consists of 170 local companies including four state owned companies and 32 foreign companies. Out of the estimated 32 multinational pharmaceuticals companies operating in Indonesia, there are around 20 European companies with an active presence. Indonesia has exported pharmaceutical products for a long time. Indonesia mainly exports quinine and its derivates as well as herbal medicines. Exports of quinine and its derivatives mainly go to Germany, USA, Singapore, UK, Vietnam, Spain, and Canada. Exports of herbal medicine mostly go to Pakistan, Iran, and Hong Kong. 91
- Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
- Page 45 and 46: are concerns in Indonesia over poss
- Page 47 and 48: nature of complex and fairly aggreg
- Page 49 and 50: to exploit potentially beneficial c
- Page 51 and 52: In the political cooperation area,
- Page 55 and 56: BACKGROUND NOTES 53
- Page 57 and 58: 2. DEVELOPMENTS Even though the tra
- Page 59 and 60: 1. to complete its ambitious negoti
- Page 61 and 62: Data collected from an investment s
- Page 63 and 64: direct recourse to international ar
- Page 65 and 66: 2.2. EU Member States EU Member Sta
- Page 67 and 68: - Component 2 (implemented by UNICE
- Page 69 and 70: 7. Indonesia to improve the investm
- Page 71 and 72: Indonesia is the largest timber exp
- Page 73 and 74: 3. TECHNICAL COOPERATION The REACH
- Page 75 and 76: The implementation of National Indo
- Page 77 and 78: Cooperation and coordination betwee
- Page 79 and 80: The proposal also puts forward a ne
- Page 81 and 82: The EU’s objectives are to secure
- Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
- Page 86 and 87: In the last decade, the expansion o
- Page 88 and 89: Indonesia’s automotives industry
- Page 90 and 91: 88 Rapidly expanding services secto
- Page 94 and 95: In Indonesia the processed foods in
- Page 96 and 97: Electronics is Indonesia’s larges
- Page 98 and 99: One of the fastest growing segments
- Page 100 and 101: The textile, clothing and footwear
- Page 102 and 103: 100
- Page 104: Delegation of the European Union In
There is remarkable scope for cooperation between <strong>Indonesia</strong> and <strong>the</strong> <strong>EU</strong> in <strong>the</strong> pharmaceutical sector. Combining vast<br />
natural and human resources of <strong>Indonesia</strong> with <strong>the</strong> know-how and technology of European investors would result in<br />
an increase in <strong>the</strong> competitiveness of pharmaceutical companies in <strong>Indonesia</strong>.<br />
The <strong>EU</strong> is a big and growing market for <strong>Indonesia</strong>n pharmaceutical products. <strong>EU</strong> pharmaceuticals market is <strong>the</strong> world’s<br />
second largest after <strong>the</strong> USA. Around 590 billion USD was spent on medicines in 2007 in Europe and this amount will<br />
likely continue to increase as <strong>the</strong> population ages. Overall, in 2007, <strong>the</strong> market for prescription and non-prescription<br />
medicines for human use in <strong>the</strong> <strong>EU</strong> was worth 189 billion USD at ex-factory and 293 billion USD at retail prices. The<br />
<strong>EU</strong> market (extra <strong>EU</strong> imports) has substantially grown, 2 times during <strong>the</strong> last 10 years. Around 80% of pharmaceuticals<br />
imports to <strong>the</strong> <strong>EU</strong> come from Switzerland and <strong>the</strong> USA. <strong>Indonesia</strong> only provided 0.02% of <strong>EU</strong> imports in 2010.<br />
90<br />
Source: Eurostat.<br />
XIX PHARMAC<strong>EU</strong>TICALS<br />
<strong>Indonesia</strong>'s pharmaceuticals<br />
exports to <strong>the</strong> <strong>EU</strong><br />
20%<br />
13%<br />
4%<br />
63%<br />
Medicaments for retail sale<br />
Alkaloids of cinchona and <strong>the</strong>ir derivatives<br />
Medicaments containing vitamins for retail sale<br />
O<strong>the</strong>r
Change language