Phapros' exports target to reach 15 percent penetration in 2023, Economist: Investor Confidence Could Increase

Jakarta, February 17, 2023 - The value of pharmaceutical product exports from the state-owned pharmaceutical holding company, PT Phapros Tbk, is targeted to grow in double digits. It is estimated that in 2023, this growth will reach more than 15 percent by targeting countries in Asia and South America such as Peru, the Philippines, and Cambodia. According to the President Director of PT Phapros Tbk, Hadi Kardoko, the export market is still wide open for products such as multivitamins, antibiotics, anti-analgesics, travel comfort products, anti-allergy, and anti-tuberculosis.

"This does not include other therapeutic drug products and medical devices produced by Phapros in collaboration with research partners from universities. We are optimistic that we can increase our net sales growth by the end of 2023 because there are still many other countries that will become Phapros' target," he said when contacted in Jakarta on February 17.

According to Hadi, the pharmaceutical product export market in Asian and African countries is still very large. Phapros is very aggressive in expanding its market to other countries so that the company's contribution to national economic growth can be more significant. Based on data from the Ministry of Industry, the pharmaceutical industry contributes 4.3 percent to Indonesia's Gross Domestic Product (GDP).

"Currently, we are exploring the Nigerian market and will later expand to other African countries."

In line with this, BUMN observer from the University of Indonesia, Toto Pranoto, revealed that the pharmaceutical and medical device market in Asia is quite large in general. In Indonesia alone, he said, the pharmaceutical market was valued at 80 trillion in 2019, not including medical devices.

"The main market for pharmaceutical and medical device products in Indonesia is in Southeast Asia and Africa when looking at the reports of several pharmaceutical companies. This is in addition to herbal products that have entered the markets in Taiwan and China. Even our vaccine products are also exported to other countries," he said.

According to him, Phapros needs to pay attention to an efficient cost structure so that the export selling price can also be competitive. This includes distinguishing the products sold from competitors, so the potential for growth is also significant.

"The competitiveness of exports is determined by pricing and product differentiation. The better the company's prospects, as shown by increasing sales and profits, the higher the investor confidence," he said.

Based on data from the United Nations Conference on Trade and Development, Indonesian pharmaceutical and drug product exports were reported at USD 130,395,780 in 2021. This record increased compared to the previous year of USD 100,826,464 in 2020. The annual export average was USD 116,605,830 from 2003 to 2021, with 19 observations.