Indonesia is the largest pharmaceutical market share in the ASEAN/Southeast Asia region, reaching 27% of the total ASEAN market share, where 73% of the national pharmaceutical market share is dominated by local pharmaceutical companies.
This condition is very unique where only in the ASEAN region where local companies dominate the market share. Other ASEAN countries such as Singapore, Malaysia and Thailand have their pharmaceutical market share controlled by Pharmaceutical Multi National Companies.
Update on the rankings of Largest pharmaceutical companies in 2019
The ranking of Indonesian pharmaceutical companies has changed from 2017, several pharmaceutical industries have changed their positions to the following:
It can be seen above that number 1 is Dexa Medica which was previously ranked 3. Dexa Medica has a market share of 6.1%. Ferron himself who is part of the Dexa Group is counted separately in this ranking. However, if the state-owned pharmaceutical holding which consists of Biofarma, Kimia Farma and Indofarma are put together, it will be in 1st place with a market share of 8.2%. When combined with Ferron, the Dexa Group will be ranked 2nd after the State-owned enterprises (BUMN pharmaceutical holding).
The following is the order of ranking based on the size of the market share (in percent):
- Dexa Medica 6.1%
- Sanbe Farma 5.4%
- Kalbe Farma 5.3%
- Kimia Farma (including Phapros) 3.9%
- Biopharma 3.8%
- Novartis 2.9%
- Nvell Pharmaceutical Laboratories 2.9%
- Lapi 2%
- Interbat 2.0%
- Ferron Pharmaceutical 1.9%
The Indonesian Pharmaceutical Industry, is a highly fragmented market with more than 200 pharmaceutical companies.
There are no dominant players in the Indonesian pharmaceutical market, so competition occurs competitively, especially in the top 10 rankings of the Pharmaceutical companies.
For the Q3 ranking (3rd quarter) 2019 versus the Q3 ranking (3rd quarter) 2020 the following:
The following is the background of the Indonesian pharmaceutical market in 2020
- Large population of Indonesia, the largest in ASEAN, number four in the world. Indonesia’s population of 274 million inhabitants
- There is an increasing trend of non-communicable diseases, which will encourage opportunities in the health sector, especially medicine
- The steady growth of the Indonesian Pharmaceutical Industry for the last 10 years, can be seen by the increase in the total market size in the pharmaceutical sector
- Increase in Market Size in 2016-2019, from 65.9 T to 88.36
- This condition indicates the high demand and consumption of medicines
- Increasing awareness of the Indonesian public about medicine and health
- Increasing income of the middle class, which has an increasing trend. This results in affordability of the purchase price of medicines.
The following is the ranking of Indonesian pharmaceutical companies in 2017 (based on sales in 2016)
- Kalbe Farma is Indonesia’s largest pharmaceutical company with a market share of 6.5%
- Sanbe Farma 5.92%
- Dexa Medica 3.88%
- Pharos Indonesia 3.28%
- Tempo Scan Pacific 2.58%
- Kimia Farma 2.50%
- Fahrenheit 2.44%
- Soho 2.28%
- Novell Pharm 2.06%
It appears that the Indonesian pharmaceutical market share is highly fragmented with a small share of the market share. How has the ranking of Indonesian pharmaceutical companies changed during the last 3 years? can be seen in the table below:
It can be seen in the table above that the top 4 positions are always constant, while the 6-10 positions change relatively every year, this is an indication that the competition is very tight in this position. There is a possibility that the 6-10 positions in the coming year will change again. In positions 1-4 are relatively constant but there is a change in the market share value. In 2016, there were “top performers”, namely Boehringer Ingelheim and PT Kimia Farma where Boehringer Ingelheim suddenly entered the top 10 which was not included in the previous year at all. Meanwhile, PT Kimia Farma increased dramatically from 13th (2014), 10th (2015) then 6th (2016).