Indonesia's pharmaceutical market is projected to reach Rp 102.8 trillion in 2020. This figure is almost double the 2016 figure of Rp 69.1 trillion. Kalbe Farma, in its presentation, stated this projection, assuming a compound annual growth rate (CAGR) of 10 percent for the Indonesian pharmaceutical market during the 2011-2015 period.
According to a February 2017 report by Econmark Mandiri Group Research, three factors are driving the growth of the domestic pharmaceutical market. First, the large population and the growing middle class represent a potential market for health products. Second, rising per capita income, along with economic growth, is leading to increased public health awareness. Third, the government's health insurance program (National Health Insurance/JKN) will also increase demand for health products.
As of January 2017, the number of JKN participants had reached 172.6 million people, and the target is to reach 257 million by the end of 2019. Within two years of JKN's implementation, 67.6 percent of the Indonesian population had health insurance coverage.
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