SPEAKER’S PROFILE Drs. Jahja Santoso, Pharmacist Educational background : Bandung Institute of Technology, Pharmacy college. Current Functions : Owner and President Director of PT Sanbe Farma, the largest pharmaceutical manufacturing company in Indonesia among more than 200 pharmaceutical companies. (website : www.sanbe-farma.com) Owner and President Director of PT Caprifarmindo Laboratories (website : www.caprifarmindo.com) Owner of Santosa Bandung International Hospital (website : www.santosahospital.com) Owner and President Director of PT Bina San Prima, General Trading & Distributor (website : www.binasanprima.com) Owner of the Holiday Inn International Hotel in Bandung / Ibis Hotel in Semarang Member Board of Trustee, Padjadjaran University Honorary Title Prince of Central Java Kingdom Founder of Santoso Charity Foundation with 75 orphanage houses and 2,000 students with scholarship. Honorary Consul of The Republic of Latvia, for West Java & Bali (Indonesia) Owner of San Diamond Jewelry Invest in Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011 INDONESIA • Biggest archipelago country in the world - Island : > 17,000 - Lands : ± 2 million km2 - Sea : ± 5,8 million km2 - Coastal line : ± 81,000 km • Population : 240,000,000 people • Hundreds of ethnics • More than 750 languages & dialects 6,435 Km • One of biggest democratic country Snapshot of Indonesia’s Macro Condition Snapshot of Indonesia’s Macro Condition GDP (Qtr II-2010) Foreign exchange (FX) Reserves (Qtr II-2010) Interest Rate (as per July ‘10) Foreign Debt Ratio (Qtr II-2010) Inflation (until September 2010) 6.0% USD 76.3 Billion 6.50 % 28.3 % 5.28% Note : Nominal per-capita GDP is expected to quadruple by 2020 as per Standard Chartered Source: Bank Indonesia, Investment Coordinating Board / BKPM INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 1. Dynamic and youthful population • Of the 240 million people in Indonesia, over 50% of the population is under 29 years old • Rapidly urbanizing population provides for labor force in centers of investment • Dynamic labor market participation with a growth of 2.3 million people per year INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 2. Abundance of natural resources Crude Oil Key Metrics Over 3.5 billion barrels of proven reserves Natural Gas About 112 ton cubic feet of reserves Thermal Geothermal Coal World’s second largest exporter Home to 40% of world’s resources INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 2. Abundance of natural resources Palm oil Key World’s largest Metrics exporter, producing about 19 million tons per year Cocoa At 779 thousand tons per year, world’s second largest producer Tin At 65 thousand tons per year, world’s second largest producer INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 3. Burgeoning Domestic Market The services sector has grown over 16 percentage points from 1998 to 2009. Private consumption accounts for 70% of GDP and has increased by 5.3% in 2008 Consumer confidence index rose by nearly 10% in November 2009 (year-on-year) Over 50% of the population live in urban areas and adopt a modern lifestyle INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 4. Strategic Location and Increasing Global Presence Indonesia lies strategically in the intersection of the Pacific Ocean, along the Malacca Straits and the Indian ocean Over half of all international shipping travel through Indonesian waters The only country in South-east Asia that is a member of G-20 An active and strong voice of developing countries in global discussions on issues around climate change, global economy architecture, etc INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 5. Increasingly skilled labor force • Government is committed to making education a priority: Education spending accounts for 16% of total government expenditures University graduates are trained in technical fields such as finance and economics (28%) or engineering and sciences (27.5%) • Labor cost is relatively low (USD 0.6 per hour), even as compared to investment magnets China (USD 2.11 per hour) and India (USD 1.03 per hour) INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES KEY STRENGTHS 6. On-going reform in investment climate Investment Law (2007) - Equal Treatment for foreign & domestic investors - No Minimum Capital Requirement - Divestment not required - Free to Repatriate Investment & Profit - Legal Guarantee - Dispute Settlement - Investment Services Establishment of a one-door integrated service and a national single window for investment, enhancing investment coordination and facilitation. Listed as one of ten countries improving investor protections as per Doing Business Report 2010 by IFC (International Finance Corporation) Stimulus Tax and Duties covered by government Income Tax Reduction for Individual & Geothermal Development Speeding Up Infrastructure Development Discount Price for Power & Energy Intensify discussion on facilities for foreign investments including integrated services and reviewing of fiscal facilities 2010 Foreign Direct Investment (FDI) Confidence Index Conclusion Indonesia with its big population, abundant natural resources, on-going reform in investment climate is a promising country for investment. Government has commitment to support investment in Indonesia with its Investment Law 2007. Indonesia is ranked as the 20th FDI (Foreign Direct Investment) destination country in 2010. For further information, please contact : * INDONESIA INVESTMENT COORDINATING BOARD • Chairman : Gita I. Wirjawan • Deputy Chairman of Investment Promotion : Ir. Darmawan Dj., MA • Website : www.bkpm.go.id • Office Address : Jl. Jend. Gatot Subroto No. 44, Jakarta 12190 P.O. Box 3186, Indonesia Phone : +62 21 5292 1334 Fax : +62 21 5264 211 E-mail : info@bkpm.go.id INDONESIAN PHARMACEUTICAL OVERVIEW Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011 INDONESIAN CONDITION Drug consumption Per capita/year • • • • Year US $ 2004 8.2 2005 8.8 2006 9.0 2007 10.0 2008 12.0 Hospitals 1,200 Total Doctors 40,000 – Specialist 10,000 – General Practitioner 24,000 – Dentist 6,000 – Ratio Doctor to Patient: Way below WHO standard Primary Health Care 7,000 Pharmacies 7,000 HEALTH BUDGET IN INDONESIA FROM YEAR TO YEAR 2005 IDR 5.8 trillion 2006 IDR 13.5 trillion 2007 IDR 15.1 trillion 2008 IDR 16 trillion 2009 IDR 19.3 trillion 2010 IDR 26 trillion Source : from various sources Note : USD 1 = Rp 9,000 Health Expenditure Comparison in ASEAN countries Country Vietnam Cambodia Malaysia Health Expenditure (as % of GDP) 6.6 6.0 4.3 Laos Thailand Singapore Philippines 3.6 3.5 3.4 3.3 Myanmar Indonesia 2.3 2.2 INDONESIAN PHARMACEUTICAL MARKET Pharma Market size in 2010 : around USD 4 Billion Market growth : 14.10 % per year There are presently 200 local and 35 foreign pharmaceutical companies Patent Law: effective as of 1 January 2000 INDONESIAN PHARMACEUTICAL MARKET Pharma Market Characteristic : Capital Intensive High tech, Highly fragmented, Highly regulated Multiproduct line High imported content Small percentage of people covered by insurance PHARMA MARKET TREND IN INDONESIA 2001-2007 Value in billion rupiah GENERIC ETHICAL DRUG DRUG Year TOTAL MARKET 2001 12,850 7,891 1,547 2002 15,483 9,618 1,694 2003 17,458 10,829 1,819 2004 20,872 12,706 2,136 2005 23,629 14,675 2,529 2006 23,173 13,834 2,390 2007*) 25,027 11,899 2,222 Source : Bisnis Indonesia 12 Feb 2008 Note : USD 1 = Rp 9,000 BIG FIVE PHARMACEUTICAL COMPANIES IN INDONESIA Company KALBE FARMA SANBE FARMA Market Share (%) 6.99 5.23 SOHO 4.03 DEXA MEDICA 3.76 TEMPO SCAN PACIFIC 3.55 Source : Suara Pembaruan daily newspaper, September 25, 2010 Share of OTC & Prescription - Pharma Market OTC 33.0% Prescription 67.0% Total Registered Product: 15,911 Items Source : IMS Health PRESCRIPTION PHARMACEUTICAL MARKET SHARE Pharmacy (IPA 2009) Kalbe Group 7% Dexa Medica Group 7% Sanbe 9% Pfizer Group 6% Others 59% Sanofi Aventis 4% Interbat 3% Novartis 5% Source : IMS Health, Fiscal Year 2009 (Ethical) PRESCRIPTION PHARMACEUTICAL MARKET SHARE Hospital (IHPA 2009) Kalbe Group 11% Dexa Medica Group 9% Sanbe 9% Pfizer Group 4% Others 57% Sanofi Aventis 4% Novartis 3% Source : IMS Health, Fiscal Year 2009 (Ethical) Pharos 3% EXPORTED PHARMACEUTICAL PRODUCT FROM INDONESIA 2001-2005 AND JANUARY-JULY 2006 VALUE IN THOUSAND US$ HS PRODUCT 2001 2002 2003 2004 2005 % Share % Trend JAN-JULY JAN-JULY % change 2005 2001-2005 2005 2006 2006/2005 3001 Glands etc dry & ext, heparin, hum etc subst nesoi 339 2,898 1,107 527 42 0.04 -44.52 12 13 3.63 3002 Human blood, animal blood, antisera, vaccines etc 3,848 7,380 6,878 10,999 7,044 7.26 17.45 4,886 5,737 17.41 3003 Medicaments nesoi of mixtures, not dosage etc form 15,706 18,923 23,735 20,230 15,158 15.62 -0.04 9,768 5,894 -39.66 3004 Medicaments nesoi, mixed or not, in dosage etc fm 44,382 46,289 60,074 76,606 64,933 66.91 13.48 41,198 43,509 5.61 3005 Bandages etc coated etc or in retail medic etc fm 6,622 2,487 2,549 1,323 1,644 1.69 -28.95 980 1,253 27.85 3006 Pharmaceutical goods (specified sterile prod etc.) 5,003 9,228 9,963 8,452 8,225 8.48 9.49 4,318 6,730 55.84 104,306 118,137 97,046 100.00 8.28 61,163 63,135 3.22 75,898 87,205 TOTAL Source : Central Bureau of Statistics IMPORTED PHARMACEUTICAL PRODUCTS TO INDONESIA FROM COUNTRY OF ORIGIN in 2001-2005 AND JANUARY-JULY 2006 VALUE IN THOUSAND US$ NO. COUNTRY % % SHARE % TREND JAN-JULY JAN-JULY CHANGE 2005 2001-2005 2005 2006 2006/2005 2001 2002 2003 2004 2005 17,426 15,702 27,242 41,358 26,494 13.94 19.80 15,830 23,146 46.21 7,114 11,278 12,324 15,499 19,895 10.47 26.80 9,579 13,758 43.63 13,339 13,581 12,494 15,218 17,530 9.22 6.83 9,669 15,296 58.20 4 Switzerland 4,556 7,315 11,196 14,357 14,782 7.78 35.37 9,643 9,701 0.61 5 UK 5,124 6,295 9,043 9,469 13,035 6.86 25.55 7,603 8,214 8.04 6 Italy 3,538 4,352 5,123 8,168 11,255 5.92 34.23 7,184 7,519 4.66 7 Japan 2,404 3,845 4,205 6,167 10,232 5.38 40.06 4,381 5,833 33.16 784 3,309 6,293 6,967 9,048 4.76 75.69 5,707 7,541 32.13 2,721 4,656 3,458 5,125 8,469 4.45 26.71 3,944 5,875 48.96 4,074 6,002 7,668 8,698 8,412 4.43 19.98 4,545 7,662 68.58 Others 20,820 22,526 28,177 40,548 50,948 26.80 26.84 29,319 44,362 33.91 TOTAL 81,898 98,862 127,223 171,574 190,100 100.00 25.05 107,404 148,908 38.64 1 Germany 2 France 3 USA 8 South Korea 9 Belgium 10 Netherlands Source : Central Bureau of Statistics Pharmaceutical Business Condition o The Indonesia Pharmaceutical market is still potential enough considering the population number, GDP and drug consumption. o Industry needs to invest in order to comply with cGMP regulation o Minister of Health Decree No. 1010/Menkes/PER/XI/2008: Registration of imported drug shall be performed by domestic pharmaceutical industry with written authorization from foreign pharmaceutical industry. Technology transfer shall be done within 5 years the latest in order that the product be produced locally. o Regulation about National Social Security System / SJSN and Health Insurance for poor population. OPPORTUNITY FOR PHARMACEUTICAL INDUSTRY Opportunity to grow is still available for pharmaceutical industry in Indonesia : Indonesia as one country with the lowest medicine consumption per capita in ASEAN Indonesian vision to be high income country in 2030 (US$18,000 per capita) Indonesian people is projected to be 285 million in 2030 Source : Yayasan Indonesia Forum 2007; Bisnis Farmasi 2007, WordPress.com 30 For Further information, please contact : GP Farmasi (Indonesian Pharmaceutical Association) The only pharmaceutical association in Indonesia: covering Manufacturer, Distributor, Pharmacy & Drug Stores based on Ministry of Health Decree no 222/1969 Members: Foreign National Wholesaler Pharmacy Drug store 33 172 (4 State Owned) 2,463 7,671 5,513 (Licenced) Chairman of GP Farmasi : Mr. Anthony CH. Sunarjo, MBA. (e-mail address : anthony.sunarjo@gmail.com) Executive Secretary : Buddy Nataatmadja (e-mail address : buddynataatmadja@gmail.com) Website : www.gpfarmasi.org Office address : Jl. Angkasa No. 20 A Jakarta – 10620 Indonesia E-mail Phone Fax : sekretariat@gpfarmasi.org : +62 21 4203040 : +62 21 4203047; +62 21 4203048 NATIONAL AGENCY OF DRUG AND FOOD CONTROL (NADFC) as National Regulatory Authority in Indonesia, consistent with : Good Drug Regulatory Practices (GDRP); QA ; Standardization; Self-regulatory Code; Inspection and Audit Good Management Practices (GMgP); Transparancies and fairness; SOPs; Costrecovery; incentive/ disincentive REGULATORY SYSTEM for Pharmaceuticals in Indonesia • Consistency in regulation • Transparency of services Multi National Companies ~ Domestic Companies No discrimination on Standard and Requirement PHARMACEUTICALS (DRUGS AND BIOLOGICALS) IMPORT SISPOM (National System on D&F Control) IMPORT QUALITY, SAFETY, and EFFICACY of PHARMACEUTICALS EXPORT EXPORT SISPOM REGISTRATION DOSSIER Registration dossier for all pharmaceutical products (drug and biological products) should be submitted in ACTD (ASEAN Common Technical Dossier) format in line with ASEAN harmonization. For further information, please contact : National Agency of Drug and Food Control (NADFC) Head of National Agency of Drug and Food Control : Dra. Kustantinah, Pharmacist, MAppSc. Website : www.pom.go.id Jl. Percetakan Negara No. 23 Jakarta – 10560 Indonesia Phone : 62 21 4244691 / 42883309 / 42883462 Fax : 62 21 4263333 E-mail address : informasi@pom.go.id PT BINA SAN PRIMA GENERAL TRADING & DISTRIBUTOR PT Bina San Prima was established in 1994 38 branches and 17 sub distributors throughout Indonesia Total 4,035 employees including 155 sales supervisor, 755 salesmen Vehicle : 355 canvassing cars, 142 motor boxes COMPETITIVE ADVANTAGES • Strong financial back up • Same day delivery service • Strong field forces • Excellent coverage • Computer integrated information system • Nationwide distribution network • Professionally managed PRODUCT CATEGORY Pharmaceutical products (human & veterinary) Herbals PRINCIPAL PT Sanbe Farma, PT Caprifarmindo PT Air Mancur, PT Mulya Putra Mandiri PT Mead Johnson Indonesia Food & Beverages (cheese, biscuit, dairy product, cooking oil) PT Ultra Jaya, PT Kraft Food Indonesia PT Indofood, PT Siantar Top, etc. Confectionaries PT Perfetti van Melle, PT Tora Nusantara Personal Care PT Beiersdorf, PT Dua Berlian Other consumer products (lighting, lubricant oil) PT Shell Indonesia, PT Philips Indonesia ACHIEVEMENT AWARDS AWARDS PRINCIPAL The Best Achievement of Business Plan 2009 Shell Companies in Indonesia Best Revenue Growth Semester I 2009 PT Kraft Food Indonesia Best Growth Distribution 2009 category A,B,C PT Nutrifood Indonesia Top 5 Best Volume Achievement 2008 Shell Companies in Indonesia HSSE Award 2008 Shell Companies in Indonesia Top 5 Best Regional Distributor 2008 PT Beiersdorf Indonesia 5 Years Distribution Service PT Nutrifood Indonesia ACHIEVEMENT AWARDS AWARDS PRINCIPAL The Best Target Achievement 2007 PT Reckitt Benckiser Indonesia The Runner Up Volume Growth 2007 Shell Companies in Indonesia The Best Volume Achievement West Java 2007 Shell Companies in Indonesia The Best Volume Achievement Palembang 2007 Shell Companies in Indonesia The Best in Operation Excellence 2006 Shell Companies in Indonesia The Best Growth 2006 Shell Companies in Indonesia The Best Target Achievement 2005 PT Reckitt Benckiser Indonesia The Best Performance 2005 PT Nutrifood Indonesia The Best Business Growth 2004 PT Procter & Gamble Indonesia Contact Us : PT BINA SAN PRIMA Operation & Brand Director : Andi MS E-mail address : andi@binasanprima.com Phone : +62 22 4207725 ext. 502 – 503 Fax : +62 22 4261031 Jl. Purnawarman 47 Bandung 40116 West Java - Indonesia CONCLUSION The Indonesian Pharmaceutical market is still potential enough considering the population number, GDP and drug consumption per capita NADFC as the regulatory authority in Indonesia commits to treat the foreign and domestic pharmaceutical companies with same standard and requirement. Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011 Indonesia Consumers’ Characteristics 30 millions live in big city with sufficient buying power 100 millions low buying power, 38 millions poor 60% live in Java island, 21% in Sumatera 58% live in rural area, 42% in city 87% Moslems (200 millions) : need Halal Foods 55% < 25 years old 480 ethnics in Indonesia Rice is a main staple food Characteristics of Food & Beverages Business in Indonesia Total consumption of Food & Beverages & tobacco in 2009 : +/- Rp 1,700 trillion Fresh & unprocessed foods : +/- Rp 1,000 trillion Consumption of processed foods : +/- Rp 505 trillion Consumption of cigarettes & processed tobacco: +/- Rp 120 trillion Many malls & modern retails are built (Mini / Super / Hypermarket) Note : USD 1 = Rp 9,000 Characteristics of Food & Beverages Business in Indonesia Competitive Environment 1,159,983 food & beverages industries consist of : - 6,316 big / medium industries - 66,178 small industries - 1,087,489 home industries 10,226,595 units of wholesaler/retailer Multinational companies have entered food & beverages industry, modern retail, fast food, hotel, restaurant and plantation. Imported raw material is still relatively high (e.g. flour, milk, soybean, meat) Output of Food Industries in Indonesia 2003 - 2008 ( in million US$) Scale of Industry Year 2003 2004 2005 2006 2007 2008* Big & Medium 18,043 19,035 22,673 29,396 37,283 48,443 Small 1,261 1,509 2,412 4,107 3,035 3,330 Home industry 2,165 2,243 2,367 4,575 4,404 4,400 Total **) 21,469 22,787 27,452 38,078 44,722 56,173 Source : Statistic of Indonesia 2009, Central Bureau of Statistics ( *) temporary data EXPORT & IMPORT OF PROCESSED FOODS (2003 – 2009*) (in million US$) 2003 2004 2005 2006 Export Import 1,24 2 798 2007 2008 2009* 1,51 9 1,80 6 1,96 2,264 6 2,997 2,060* 827 1,08 6 1,21 1,950 6 1,903 1,224** Sumber : Central Bureau of Statistics 2009 (*) Jan – Sept’ 2009 (**) Jan - Nov’ 2009 Stakeholder Support Employees Customers Regulators BSN* INDUSTRY/ ASSOCIATION Government / Institutions Society / MASTAN * BSN = National Standardization Agency of Indonesia For further information, please contact : INDONESIAN FOOD & BEVERAGES ASSOCIATION CHAIRMAN : Adhi Lukman SECRETARY GENERAL : Franky Sibarani (e-mail address : frankysibarani@yahoo.com) Head of Secretariat: Virocano Hengki Email: virocano.hengki@gapmmi.or.id Data Center & Information: Tri Cahyanto (Nanang) Email: tri.cahyanto@gapmmi.or.id IT & Back Office: Bobby Kusumo Email: bobby.kusumo@gapmmi.or.id INDONESIAN FOOD & BEVERAGES ASSOCIATION Office Address : Head Office of Ministry of Agriculture Building F 2nd Floor, Room No. 224-A Jl. Harsono RM No. 3 Ragunan - Pasar Minggu Jakarta 12550 Phone : +62 21 70322626-27 Fax. : +62 21 7804347 website: www.gapmmi.or.id email : gapmmi@cbn.net.id Pulp & Paper Industry FOREIGN INVESTMENT REALIZATION IN PULP & PAPER INDUSTRY (January 1, 2005 to December 31, 2009) Year Country Investment value (in thousand USD) 2005 Singapore 5,336 2006 Mauritius Seychel USA South Korea Singapore 377,124 270,668 21,100 3,620 50 2007 Taiwan Seychel Netherland 417,866 235,218 196 2008 Mixed countries 123,762 2009 Singapore UK Mixed countries South Korea 39,815 9,995 6,578 3,300 Wood Industry FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009) Year Country Investment value (in thousand USD) 2005 Japan Hongkong South Korea Taiwan China Malaysia USA Germany Mixed countries 1,610 62,659 505 1,100 177 8,281 412 240 512 2006 Japan South Korea Taiwan Singapore Pakistan Australia Mixed countries 7,364 1,871 1,025 23,162 250 650 24,574 Wood Industry FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009) Year Country Investment value (in thousand USD) 2007 Mauritius Singapore Japan Mixed countries South Korea 55,025 48,183 14,450 7,030 3,165 2008 Japan Singapore Malaysia China Mixed countries Taiwan South Korea Australia Denmark 38,644 32,388 25,000 13,845 3,625 2,570 1,595 1,350 450 Wood Industry FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009) Year 2009 Country Singapore Mixed countries Japan Taiwan Hongkong South Korea UK Pakistan Investment value (in thousand USD) 32,332 21,534 5,025 879 878 800 350 300 For further information, please contact : * ASSOCIATION OF INDONESIA PULP & PAPER Chairman : M. Mansur Secretary General : Kahar Haryoppuspito Office Address : Jl. Cimandiri 6 Flat 1 No. 2 Jakarta 10330 Phone : +62 21 3192 6084 Fax : +62 21 3911 1351 E-mail : imppasec@indo.net.id For further information, please contact : * INDONESIAN WOOD PANEL PRODUCERS ASSOCIATION Chairman : Martias Secretary General : AA Malik Office Address : Manggala Wanabakti Building Block IV Wing A 9th Floor Jl. Jend. Gatot Subroto Jakarta 10270 Phone : +62 21 5711 290 Fax : +62 21 5733 017 / 5733 015 E-mail : sekretariat@apkindo.org For further information, please contact : * INDONESIAN SAWMIL & WOOD WORKING MANUFACTURERS ASSOCIATION Chairman : Dra. Hj. Soewarni. MM Secretary General : Drs. Sri Oetom Office Address : Manggala Wanabakti Building Block IV Wing C 8th Floor Jl. Jend. Gatot Subroto Jakarta 10270 Phone : +62 21 5733 018 Fax : +62 21 5711 327 / 5734 385 E-mail : iswa@iwwn.com Thank You For Your Kind Attention Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011