The Healthcare System and the Pharmaceutical Industry in Indonesia

Richard Husada and Raymond R. Tjandrawinata

Indonesia has experienced rapid economic and political change in the past decade. Its democratic transformation is of particular significance. Many analysts see Indonesia as the new BRIC (Brazil, Russia, India, China and South Africa) on the block. With a gross domestic product (GDP) growth rate of around 6.5 per cent in 2011, Indonesia is outstripping many other emerging markets (Economist, 2011). The majority of the population of around 238 million live in rural areas, with income dependent upon agriculture. In 2010 per capita income was estimated at US$4300. Both economic statistics and health indicators underscore how the country has surpassed the expectations of many development specialists (Bloom et al., 2011). While little is known about Indonesia's healthcare system internationally, it is clear that economic development presents opportunities for better healthcare and growth in the pharmaceutical sector. This chapter provides a perspective on the Indonesian healthcare system and the development of its pharmaceutical industry in the post-Trade Related Aspects of Intellectual Property Rights (TRIPS) era.