Despite the landmark passage of the 1938 Federal Food, Drug, and Cosmetic Act...
Indonesia optimizes domestic pharmaceutical production to cope with global pressure.
2026-05-12
Jakarta (ANTARA)The Indonesian Food and Drug Administration (BPOM) is encouraging the optimization of domestic pharmaceutical production capacity as a mitigation measure against the impact of the Middle East conflict, which could restrict exports and drive up drug prices.
"BPOM's recommendations and mitigation measures have been implemented, including technology-based regulation and production capacity optimization," said Taruna Ikrar, Director General of BPOM, during a meeting with the Ninth Committee of the Indonesian House of Representatives in Jakarta on Monday.
In addition, efforts to optimize national pharmaceutical production are being carried out in coordination with the Ministry of Health, particularly in the area of generic drugs.
Ikrar stated that during the crisis, the government encouraged temporarily restricting the production of branded generic drugs in order to concentrate industrial capacity on meeting the public's demand for essential medicines.
This measure is part of a strategy to maintain access to medicines under global pressure, while also reducing price spikes caused by disruptions in raw material supplies and rising production costs.
He explained that in addition to optimizing pharmaceutical production capacity, BPOM is also implementing an emergency industrial assistance policy.
This support includes accelerating the transformation of active ingredient (API) manufacturers and providing flexibility in the implementation of Good Manufacturing Practices (GMP) to ensure the industry can continue production under global pressure.
BPOM is also strengthening the regulation of hybrid technologies through collaborations with ministries/agency and the pharmaceutical industry, including assessment, certification and inspection.
The agency is using the Special Access Scheme (SAS) fast-track import process to expedite drug imports and maintain domestic supply.
In addition, Ikrar explained that the government is considering adjusting drug prices, especially those based on petrochemical products, in response to increasing pressure from rising global production costs.
He concluded that these measures are expected to maintain drug accessibility while reducing potential price increases amid global turmoil.