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SPEAKER’S PROFILE Drs. Jahja Santoso, Pharmacist Educational background : Bandung Institute of Technology, Pharmacy college. Current Functions :  Owner.

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Presentation on theme: "SPEAKER’S PROFILE Drs. Jahja Santoso, Pharmacist Educational background : Bandung Institute of Technology, Pharmacy college. Current Functions :  Owner."— Presentation transcript:

1 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 :  Owner and President Director of PT Caprifarmindo Laboratories (website :  Owner of Santosa Bandung International Hospital (website : hospital.com)www.santosa- hospital.com  Owner and President Director of PT Bina San Prima, General Trading & Distributor (website :  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

2 Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011 Invest in

3 INDONESIA Biggest archipelago country in the world - Island : > 17,000 - Lands : ± 2 million km 2 - Sea : ± 5,8 million km 2 - Coastal line : ± 81,000 km Population : 240,000,000 people Hundreds of ethnics More than 750 languages & dialects One of biggest democratic country 6,435 Km

4 GDP (Qtr II-2010)6.0%6.0% Foreign exchange (FX) Reserves (Qtr II-2010) USD 76.3 Billion Interest Rate (as per July ‘10)6.50 % Foreign Debt Ratio (Qtr II-2010)28.3 % Inflation (until September 2010)5.28% Source: Bank Indonesia, Investment Coordinating Board / BKPM Snapshot of Indonesia’s Macro Condition Note : Nominal per-capita GDP is expected to quadruple by 2020 as per Standard Chartered

5 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 1. Dynamic and youthful population KEY STRENGTHS Of the 240 million people in Indonesia, over 50% of the population is under 29 years old Dynamic labor market participation with a growth of 2.3 million people per year Rapidly urbanizing population provides for labor force in centers of investment

6 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 2. Abundance of natural resources KEY STRENGTHS Crude OilNatural Gas Thermal Coal Geothermal Key Metrics Over 3.5 billion barrels of proven reserves About 112 ton cubic feet of reserves World’s second largest exporter Home to 40% of world’s resources

7 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 2. Abundance of natural resources KEY STRENGTHS Palm oilCocoaTin Key Metrics World’s largest exporter, producing about 19 million tons per year At 779 thousand tons per year, world’s second largest producer At 65 thousand tons per year, world’s second largest producer

8 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 3. Burgeoning Domestic Market KEY STRENGTHS The services sector has grown over 16 percentage points from 1998 to 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

9 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 4. Strategic Location and Increasing Global Presence KEY STRENGTHS 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

10 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 5. Increasingly skilled labor force KEY STRENGTHS 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)

11 INDONESIA’S UNIQUE STRENGTHS AND OPPORTUNITIES 6. On-going reform in investment climate KEY STRENGTHS 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)

12 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

13 2010 Foreign Direct Investment (FDI) Confidence Index

14 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 Indonesia is ranked as the 20 th FDI (Foreign Direct Investment) destination country in 2010.

15 For further information, please contact : * INDONESIA INVESTMENT COORDINATING BOARD Chairman : Gita I. Wirjawan Deputy Chairman of Investment Promotion : Ir. Darmawan Dj., MA Website : Office Address : Jl. Jend. Gatot Subroto No. 44, Jakarta P.O. Box 3186, Indonesia Phone : Fax:

16 INDONESIAN PHARMACEUTICAL OVERVIEW Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011

17 INDONESIAN CONDITION Drug consumption Per capita/year YearUS $ Hospitals 1,200 Total Doctors 40,000 –Specialist 10,000 –General Practitioner24,000 –Dentist 6,000 –Ratio Doctor to Patient: Way below WHO standard Primary Health Care 7,000 Pharmacies 7,000

18 HEALTH BUDGET IN INDONESIA FROM YEAR TO YEAR Source : from various sources 2005 IDR 5.8 trillion 2006IDR 13.5 trillion 2007 IDR 15.1 trillion 2008 IDR 16 trillion 2009 IDR 19.3 trillion 2010 IDR 26 trillion Note : USD 1 = Rp 9,000

19 Health Expenditure Comparison in ASEAN countries CountryHealth Expenditure (as % of GDP) Vietnam6.6 Cambodia6.0 Malaysia4.3 Laos3.6 Thailand3.5 Singapore3.4 Philippines3.3 Myanmar2.3 Indonesia2.2

20  Pharma Market size in 2010 : around USD 4 Billion  Market growth : % per year  There are presently 200 local and 35 foreign pharmaceutical companies  Patent Law: effective as of 1 January 2000 INDONESIAN PHARMACEUTICAL MARKET

21 Pharma Market Characteristic :  Capital Intensive  High tech, Highly fragmented, Highly regulated  Multiproduct line  High imported content  Small percentage of people covered by insurance

22 PHARMA MARKET TREND IN INDONESIA YearTOTAL MARKETETHICAL DRUG GENERIC DRUG ,8507,8911, ,4839,6181, ,45810,8291, ,87212,7062, ,62914,6752, ,17313,8342, *) 25,02711,8992,222 Value in billion rupiah Source : Bisnis Indonesia 12 Feb 2008 Note : USD 1 = Rp 9,000

23 BIG FIVE PHARMACEUTICAL COMPANIES IN INDONESIA Company Market Share (%) KALBE FARMA 6.99 SANBE FARMA 5.23 SOHO4.03 DEXA MEDICA 3.76 TEMPO SCAN PACIFIC 3.55 Source : Suara Pembaruan daily newspaper, September 25, 2010

24 Share of OTC & Prescription - Pharma Market Source : IMS Health Total Registered Product: 15,911 Items

25 PRESCRIPTION PHARMACEUTICAL MARKET SHARE Source : IMS Health, Fiscal Year 2009 (Ethical)

26 PRESCRIPTION PHARMACEUTICAL MARKET SHARE Source : IMS Health, Fiscal Year 2009 (Ethical)

27 EXPORTED PHARMACEUTICAL PRODUCT FROM INDONESIA AND JANUARY-JULY 2006 HSPRODUCT % Share 2005 % Trend JAN-JULY 2005 JAN-JULY 2006 % change 2006/ Glands etc dry & ext, heparin, hum etc subst nesoi 339 2,898 1, Human blood, animal blood, antisera, vaccines etc 3,848 7,380 6,878 10,999 7, ,886 5, Medicaments nesoi of mixtures, not dosage etc form 15,706 18,923 23,735 20,230 15, ,768 5, Medicaments nesoi, mixed or not, in dosage etc fm 44,382 46,289 60,074 76,606 64, ,198 43, Bandages etc coated etc or in retail medic etc fm 6,622 2,487 2,549 1,323 1, , Pharmaceutical goods (specified sterile prod etc.) 5,003 9,228 9,963 8,452 8, ,318 6, TOTAL 75,898 87, , ,137 97, ,163 63, VALUE IN THOUSAND US$ Source : Central Bureau of Statistics

28 NO.COUNTRY % SHARE 2005 % TREND JAN-JULY 2005 JAN-JULY 2006 % CHANGE 2006/2005 1Germany 17,42615,70227,24241,358 26, ,830 23, France7,11411,27812,32415,499 19, ,579 13, USA13,33913,58112,494 15,218 17, ,669 15, Switzerland4,556 7,31511,196 14,357 14, ,643 9, UK5,124 6,2959,043 9,469 13, ,603 8, Italy3,538 4,3525,123 8,168 11, ,184 7, Japan2,404 3,8454,205 6,167 10, ,381 5, South Korea784 3,3096,293 6,967 9, ,707 7, Belgium2,721 4,6563,458 5,125 8, ,944 5, Netherlands4,0746,0027,668 8,698 8, ,545 7, Others20,82022,52628,177 40,548 50, ,319 44, TOTAL 81,89898,862127,223171,574190, , , IMPORTED PHARMACEUTICAL PRODUCTS TO INDONESIA FROM COUNTRY OF ORIGIN in AND JANUARY-JULY 2006 VALUE IN THOUSAND US$ Source : Central Bureau of Statistics

29 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.

30 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 OPPORTUNITY FOR PHARMACEUTICAL INDUSTRY

31 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 33  National 172 (4 State Owned)  Wholesaler 2,463  Pharmacy 7,671  Drug store 5,513 (Licenced)

32 Chairman of GP Farmasi : Mr. Anthony CH. Sunarjo, MBA. ( address : Executive Secretary : Buddy Nataatmadja ( address : Website : Office address : Jl. Angkasa No. 20 A Jakarta – Indonesia Phone : Fax: ;

33

34 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; Cost- recovery; incentive/ disincentive

35 REGULATORY SYSTEM for Pharmaceuticals in Indonesia Consistency in regulation Transparency of services No discrimination on Standard and Requirement Domestic Companies ~ Multi National Companies

36 QUALITY, SAFETY, and EFFICACY of PHARMACEUTICALS PHARMACEUTICALS (DRUGS AND BIOLOGICALS) SISPOM (National System on D&F Control) SISPOM IMPORT EXPORT

37 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.

38 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 : Jl. Percetakan Negara No. 23 Jakarta – Indonesia Phone : / / Fax : address :

39 GENERAL TRADING & DISTRIBUTOR PT Bina San Prima was established in branches and 17 sub distributors throughout Indonesia Total 4,035 employees including 155 sales supervisor, 755 salesmen Vehicle : 355 canvassing cars, 142 motor boxes PT BINA SAN PRIMA COMPETITIVE ADVANTAGES Strong financial back up Same day delivery service Strong field forces Excellent coverage Computer integrated information system Nationwide distribution network Professionally managed

40 PRODUCT CATEGORYPRINCIPAL Pharmaceutical products (human & veterinary) PT Sanbe Farma, PT Caprifarmindo Herbals PT Air Mancur, PT Mulya Putra Mandiri Food & Beverages (cheese, biscuit, dairy product, cooking oil) PT Mead Johnson Indonesia 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

41 ACHIEVEMENT AWARDS AWARDSPRINCIPAL The Best Achievement of Business Plan 2009Shell Companies in Indonesia Best Revenue Growth Semester I 2009PT Kraft Food Indonesia Best Growth Distribution 2009 category A,B,CPT Nutrifood Indonesia Top 5 Best Volume Achievement 2008Shell Companies in Indonesia HSSE Award 2008Shell Companies in Indonesia Top 5 Best Regional Distributor 2008PT Beiersdorf Indonesia 5 Years Distribution ServicePT Nutrifood Indonesia

42 ACHIEVEMENT AWARDS AWARDSPRINCIPAL The Best Target Achievement 2007PT Reckitt Benckiser Indonesia The Runner Up Volume Growth 2007Shell 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 2006Shell Companies in Indonesia The Best Growth 2006Shell Companies in Indonesia The Best Target Achievement 2005PT Reckitt Benckiser Indonesia The Best Performance 2005PT Nutrifood Indonesia The Best Business Growth 2004PT Procter & Gamble Indonesia

43 Contact Us : PT BINA SAN PRIMA Operation & Brand Director : Andi MS address : Phone : ext. 502 – 503 Fax : Jl. Purnawarman 47 Bandung West Java - Indonesia

44 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.

45 Presented by : Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011

46 Indonesia Consumers’ Characteristics 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

47 Characteristics of Food & Beverages Business in Indonesia Total consumption of Food & Beverages & tobacco in 2009 : +/- Rp 1,700 trillion Total consumption of Food & Beverages & tobacco in 2009 : +/- Rp 1,700 trillion Fresh & unprocessed foods : +/- Rp 1,000 trillion Fresh & unprocessed foods : +/- Rp 1,000 trillion Consumption of processed foods : +/- Rp 505 trillion Consumption of processed foods : +/- Rp 505 trillion Consumption of cigarettes & processed tobacco: +/- Rp 120 trillion Consumption of cigarettes & processed tobacco: +/- Rp 120 trillion Many malls & modern retails are built (Mini / Super / Hypermarket) Many malls & modern retails are built (Mini / Super / Hypermarket) Note : USD 1 = Rp 9,000

48 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)

49 Output of Food Industries in Indonesia ( in million US$) Output of Food Industries in Indonesia ( in million US$) Scale of Industry Year * Big & Medium 18,04319,03522,67329,39637,28348,443 Small1,2611,5092,4124,1073,0353,330 Home industry 2,1652,2432,3674,5754,4044,400 Total **) 21,46922,78727,45238,07844,72256,173 Source : Statistic of Indonesia 2009, Central Bureau of Statistics ( *) temporary data

50 EXPORT & IMPORT OF PROCESSED FOODS (2003 – 2009*) (in million US$) * Export 1,24 2 1,51 9 1,80 6 1,96 6 2,2642,9972,060* Import ,08 6 1,21 6 1,950 1,903 1,224** Sumber : Central Bureau of Statistics 2009 (*) Jan – Sept’ 2009 (**) Jan - Nov’ 2009

51 BSN* Government / Institutions CustomersRegulators INDUSTRY/ ASSOCIATION Employees Society / MASTAN Stakeholder Support * BSN = National Standardization Agency of Indonesia

52 CHAIRMAN: Adhi Lukman SECRETARY GENERAL : Franky Sibarani ( address : ) ( address : Head of Secretariat: Virocano Hengki Data Center & Information: Tri Cahyanto (Nanang) IT & Back Office: Bobby Kusumo For further information, please contact : INDONESIAN FOOD & BEVERAGES ASSOCIATION

53 Office Address : Head Office of Ministry of Agriculture Building F 2 nd Floor, Room No. 224-A Jl. Harsono RM No. 3 Ragunan - Pasar Minggu Jakarta Phone : Fax. : website: INDONESIAN FOOD & BEVERAGES ASSOCIATION

54 Pulp & Paper Industry FOREIGN INVESTMENT REALIZATION IN PULP & PAPER INDUSTRY (January 1, 2005 to December 31, 2009) YearCountryInvestment value (in thousand USD) 2005Singapore5, Mauritius Seychel USA South Korea Singapore 377, ,668 21,100 3, Taiwan Seychel Netherland 417, , Mixed countries123, Singapore UK Mixed countries South Korea 39,815 9,995 6,578 3,300

55 Wood Industry YearCountryInvestment value (in thousand USD) 2005Japan Hongkong South Korea Taiwan China Malaysia USA Germany Mixed countries 1,610 62, , , Japan South Korea Taiwan Singapore Pakistan Australia Mixed countries 7,364 1,871 1,025 23, ,574 FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009)

56 Wood Industry YearCountryInvestment value (in thousand USD) 2007Mauritius Singapore Japan Mixed countries South Korea 55,025 48,183 14,450 7,030 3, 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, FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009)

57 Wood Industry YearCountryInvestment value (in thousand USD) 2009Singapore Mixed countries Japan Taiwan Hongkong South Korea UK Pakistan 32,332 21,534 5, FOREIGN INVESTMENT REALIZATION IN WOOD INDUSTRY (January 1, 2005 to December 31, 2009)

58 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 Phone : Fax:

59 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 9 th Floor Jl. Jend. Gatot Subroto Jakarta Phone : Fax: /

60 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 8 th Floor Jl. Jend. Gatot Subroto Jakarta Phone : Fax: /

61 Thank You For Your Kind Attention Drs. Jahja Santoso, Pharmacist Honorary Consul of The Republic of Latvia For West Java & Bali June 07, 2011


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