In April of this year, PT Bayer Indonesia celebrated the shipment of its 3,000th export container of health products to Europe from its factory in Cimanggis, Depok. This shipment rounded up the Rp. 3.9 trillion (roughly US$275 million at current exchange rates) in export value the company has accrued over the past few years. The company’s export has grown exponentially from the past decade when it exported to fewer than 10 countries. Bayer had, in the period from 2017 to 2019, invested some Rp 1.6 trillion to expand the production capacity of its Indonesian factories. Senior Bayer representative at the ASEAN region, Ernst Coppens, said the investment was affirmation of the company’s faith that Indonesia can become a leading pharmaceutical producing country in the world. Bayer isn’t the only company to put faith in Indonesia’s potential. Last year, President Joko “Jokowi” Widodo himself inaugurated the factory launch of PT Kalbio Global Medika, a joint-venture company between publicly listed Indonesian company PT Kalbe Farma and leading South Korean biotechnology R&D company, Genexine Inc., which will create both pharmaceutical ingredients and ready-to-use drugs using biotechnology. Meanwhile, PT Kimia Farma Sungwin Pharmacopia, a joint venture between state-owned PT Kimia Farma and South Korea’s Sungwun Pharmacopia Co. Ltd., has been able to produce eight Active Pharmaceutical Ingredients (API) as well as seven high function chemicals used as ingredients for cosmetics and food supplements. The examples above illustrate the constant forward trajectory of Indonesia’s pharmaceutical and medical devices sector. Indonesia currently stands as the largest market in ASEAN with a market value that is expected to hit over $10 billion by 2021 under a forecasted growth rate of between 12 to 13 percent annually. And that’s under a healthcare expenditure that is 3% of GDP, one of the lowest in the region and below the ASEAN country average of 4%, despite growing at a CAGR of 14% in the last five years. Nasional (National Health Insurance) program or JKN. Launched in 2016, the nation-wide health coverage has, as of the end of 2018, covered roughly 77% of the population, or over 200 million Indonesians, and is expected to reach full coverage by this year or the next. The program has been a boon for pharmaceutical and medical devices companies operating in Indonesia and overseas as it is expected to continue driving healthcare expenditure upwards. In 2018, the country has injected Rp. 10.5 trillion to cover hospital medical expenses for JKN participants alone. This is also why the ability to produce their own medicine is an important issue for Indonesians. Despite being home to more than 30,000 medicinal plants out of the globally known 40,000 medicinal plants, the country still needs to import 95% of its API. This is due to a lack of investment in research and development among local pharmaceuticals, as well as, to some extent, a restrictive foreign investment policy that limits foreign ownership of local pharmaceuticals and medical devices manufacturers. Fortunately, in conjunction with the launch of the JKN, the nation has opened its pharmaceutical industry to 100% foreign ownership, reflecting the government’s commitment to push to pharmaceutical and medical devices industry forward. This impetus will go a long way in meeting the challenges faced by the implementation of the JKN. As mentioned, the program is already facing late payments from hospitals to pharmaceutical and medical device providers. Meanwhile, the fact that the country still imports over 95% of its API is a major bottleneck in pushing the cost of drugs down. In this regard, the government is planning to introduce a super deductible tax policy of up to 200% for vocational programs and up to 300% for research and innovation development. It is clear that the private sector has a significant role to play in the development of Indonesia’s pharmaceutical and medical devices industry, as exemplified by the companies mentioned earlier in this article. The prescription for success lies in finding the right business partner and in having first-hand knowledge of the local conditions.
Die 91´óÉñ Indonesien (EKONID) repräsentiert seit mehr als 40 Jahren die Interessen der deutschen Wirtschaft in Indonesien und ist bevorzugter Partner für deutsche Unternehmen, die neu in den Markt eintreten oder mit ihrer Niederlassung im Markt expandieren möchten. EKONID Mitglieder profitieren dabei von einem weit verzweigten Netzwerk an Kontakten zu Unternehmen, Institutionen und staatlichen Stellen in Indonesien. EKONID bietet regelmäßig qualifizierte Praktika im Bereich Business Development & Market Research an. Praktikanten erhalten die Möglichkeit in einem internationalen Umfeld aktiv an der Förderung der deutsch-indonesischen Wirtschaftsbeziehungen mitzuwirken. Jeder Praktikant wird dabei in Projekte unterschiedlicher Laufzeit eingebunden und lernt neben den Fachaufgaben auch die repräsentativen Aufgaben einer Außenhandelskammer bei diversen Veranstaltungen kennen. Das Praktikum bei EKONID gewährt ein erhebliches Maß an selbständiger und eigenverantwortlicher Arbeit und umfasst unter anderem die folgenden Aufgabenstellungen: <ul class="rte_ul"><li>Mitarbeit bei der Organisation und Durchführung von Projekten der Exportinitiativen und Förderprogramme des Bundes: Von der Akquise bis zur Betreuung von Wirtschaftsdelegationen</li><li>Mitwirkung bei der Erstellung von branchenspezifischen Marktstudien</li><li>Mitwirkung bei der Beantwortung von Unternehmensanfragen und bei der Kontaktpflege</li><li>Schreiben von Artikeln für die Mitgliederzeitschrift „Sorotan“ </li><li>PR Arbeit, Erstellung von Präsentationen, Übersetzungen </li><li>Unterstützung der Mitarbeiter der 91´óÉñ beim Tagesgeschäft</li></ul> <b>Das erwarten wir von Ihnen: </b> <ul class="rte_ul"><li>Abgeschlossenes Bachelor-Studium (bevorzugt Wirtschaftswissenschaften, Regionalwissenschaften, o.ä.) </li><li>Sehr gute Englisch Kenntnisse, Kenntnisse der indonesischen Sprache von Vorteil </li><li>Sehr gute MS Office Kenntnisse </li><li>Sehr gute Schreibfähigkeiten in deutscher und englischer Sprache </li><li>Interesse an den deutsch-indonesischen Wirtschaftsbeziehungen </li><li>Flexibilität und Leistungsbereitschaft </li></ul> Die <b>Dauer des Praktikums</b> ist auf sechs Monate festgesetzt. <b>Einsatzort:</b> Jakarta <b>Bei Interesse senden Sie Ihre Bewerbung bitte an yunita.turnip@ekonid.id </b>
Those who have spent their last few months in Jakarta would have heard about the planned relocation of the nation’s capital city to the island of Kalimantan, right in the middle of this sprawling archipelago of some 17,000 islands. It is not the first time Indonesians have heard about the plan, but if newly re-elected President Joko “Jokowi” Widodo’s recent visits to the possible new locations, as well as the concrete plans that have been drawn out by his ministers, are any indications, he might just be the President to get it done if not at least started. The reason behind the relocation is obvious to those who have been to Jakarta. Traffic-congested, overpopulated, and rapidly sinking, the city is in dire need of a makeover. Taking out the government part of the capital city’s status as a center for government and business would give Jakarta a fighting chance. This is where energy efficiency solutions providers come in. And not just in Jakarta, but also in regards to the possible development of the new Indonesian capital city should it come to pass in the upcoming years. <b>Stable economy outlook<br /></b>The Asia Pacific region represents a major portion of global real estate, with about 40% of the world’s building supply. Emerging economies in the region continue to construct steady volumes of new commercial buildings, with Indonesia’s construction industry worth 10% of the country’s over 1 trillion dollars GDP. However, such rapid growth comes with a cost. A 2018 report from the International Energy Agency stated that air conditioners in homes are offices and are the fastest growing use of energy in buildings and will drive peak electricity demand. This is very true for tropical Indonesia, which currently operates over 223 million air conditioner units, according to the same publication. This further explains why private households and the commercial sector together account for around one fifth, and are already the third largest consumer after the transport- and industry sectors, of Indonesia's energy consumption. The building sector currently accounts for around 28% of total energy-related CO2 emissions, of which two thirds are emissions from electricity generation for use in buildings. Meanwhile, in conjunction with a continuing construction boom in Indonesia's urban centers, the available office space is expanding by more than 540,000 m² per year. There is no question thus whether there is any demand, if not a need, for the necessary building technology. As cooling of buildings in Indonesia accounts for about 60% of the buildings total energy consumption, it will become much more important for building owners to use energy-efficient technologies after the already gradual reduction of electricity subsidies under the Jokowi government and the expected increase in electricity prices in the near future. In the absence of local players, these energy efficient technologies continue to be imported from abroad on a large scale. In the areas of energy-efficient lighting and building automation Indonesia offers great potential for savings in electricity consumption. Just roughly 10% of buildings in Indonesia are currently equipped with LED technology for lighting. Furthermore, building automation systems (BAS) are increasingly used in buildings nowadays, leading to market growth of 10-15% per year. <b>Increased awareness<br /></b>One of Jakarta’s main problems is the near-lack of spatial planning, not to mention runaway development following Indonesia’s booming economy in the later part of the 20th century. Back then, climate change was a mere notion and environmental awareness was not the global agenda as it is now. Today, Indonesia’s rising middle-class has brought as well a surge of awareness in regards to environmental concerns, of which the government is highly aware. In regards to the planned new location of the capital city, President Jokowi’s chief planning authority, Mr. Bambang Brodjonegoro, have stated that the capital city must be “Smart, Green and Beautiful”. Both Jakarta and the supposed new capital represent the myriad of opportunities available for energy efficiency solutions providers to take part in Indonesia’s emerging economy. In facilitating German companies who are interested in taking part in Indonesia’s energy efficiency sector, EKONID is holding a business trip and business forum, as well as one-to-one discussions with potential business partners on energy efficiency and renewable energies in the building sector in Indonesia from November 11-15, 2019. For more information regarding the Business Delegation, please visit <a target="_self" href="http://bit.ly/2X5KN5Z">https://bit.ly/2X5KN5Z</a>