Pharmaceutical Industry Investment Plunges 81.9% in Q1 2021

The Ministry of Industry (Kemenperin) recorded a total investment of Rp 150.3 billion in the pharmaceutical industry, chemical drug products, and traditional medicine in the first quarter of 2021. This figure plummeted by 81.9% year-on-year (yoy) compared to the same quarter of the previous year, which amounted to Rp 832.4 billion.

Compared to the fourth quarter of 2020, total investment in the pharmaceutical industry also decreased by 69.45% quarter-to-quarter (q-to-q). Total investment in the pharmaceutical industry in the fourth quarter of 2020 was recorded at Rp 492.1 billion.

The decline in investment in the pharmaceutical industry in the first quarter of 2021 was mainly due to a decrease in Domestic Investment (PMDN). PMDN investment constitutes a larger portion than Foreign Investment (PMA).

PMDN investment in the pharmaceutical industry in the first quarter of 2021 was recorded at Rp 92.9 billion, down 85.7% year-on-year (yoy). Compared to the fourth quarter of 2020, it decreased by 71.95% (q-to-q).

Meanwhile, PMA investment in the pharmaceutical industry in the first quarter of 2021 amounted to US$ 3.9 million, down 69.2% (yoy). It also decreased by 64.8% compared to the fourth quarter of 2020 (q-to-q).

Overall, investment in the pharmaceutical industry shows a downward trend from the first quarter of 2019 to the first quarter of 2021. While it surged in the second quarter of 2020, it subsequently declined until the first quarter of 2021.