PT Bayer Indonesia has export products to Europe with a total value Rp3.9 trillion (US$276.60 million) - Photo by Industry ministry Office

JAKARTA (TheInsiderStories) – An Indonesian health and agricultural producer, PT Bayer Indonesia has export products to Europe with a total value Rp3.9 trillion (US$276.60 million), said the industry minister yesterday. In addition to Europe, as much as 80 percent of the production is intended for export to 32 countries around the world.

The minister Airlangga Hartarto so far unit of Germany’ Bayer Group has invested €100 million or Rp1.6 trillion to build and equip modern facilities at their factory in Depok, East Java.

Hartarto added that the development of the pharmaceutical industry in Indonesia is still prospective. One of these opportunities was driven by the existence of a National Health Insurance program with a total of 217 million participants.

“Of course this potential is an opportunity for the development of the pharmaceutical industry in Indonesia,” he firmed.

Hartarto emphasized that he would continue to encourage the pharmaceutical and pharmaceutical ingredients industries in their development through various facilities and incentives in the form of reducing taxes and import duties borne by the government and other forms of incentives.

“The pharmaceutical industry must continue to be encouraged for new expansion and investment. Because, to suppress imports there needs to be investment, besides that the export duty of pharmaceutical products to many countries is still zero percent so that it becomes a great potential for Indonesia in developing this sector,” he explained.

President Director of Bayer Indonesia Angel Michael Evangelista, stressed that his party was always committed to taking part in Indonesia’s economic development, especially reducing the current account deficit.

“We produce international standard health products at factories located in Cimanggis, Depok, West Java. There are 80 percent of the production can be exported to more than 32 countries around the world,” he said.

Meanwhile, Bayer Senior Representative for ASEAN Ernst Coppens added that Bayer has invested to build and equip health factories with modern facilities so that the products produced meet world quality standards.

“The Bayer health product factory in Cimanggis is the only factory in the ASEAN region and the largest with significant export value throughout Asia Pacific and is a center of superior production from 12 Bayer factories throughout the world,” he said.

Data from the Ministry of Industry noted that the pharmaceutical industry, chemical drug products and traditional medicines grew by 4.46 percent and contributed to the industry’s GDP of the non-oil and gas processing industry by 2.78 percent and continued to increase over the past five years.

At present, there are 206 domestic pharmaceutical industries, dominated by 178 national private companies, and 24 multinational companies and 4 state companies.

In addition to the factory in Cimanggis, Bayer Indonesia also operates two agrochemical plants in two locations, Surabaya with 30 percent of its production capacity exported to 10 countries and one other factory in Tangerang that exports 35 percent of total production to four countries.

Written by Daniel Deha, Email: daniel@theinsiderstories.com