Summary

Indonesia's President Joko Widodo has called for the improvement of the country's healthcare quality and a reduction in dependence on foreign healthcare services. The President made the call during the groundbreaking ceremony of the International Hospital Bali, which is expected to be completed and operational by mid-2023. The hospital is located in the Sanur tourist area and is expected to become a special economic zone for healthcare. The President also expressed his hope that the hospital would help reduce the number of Indonesians seeking medical treatment abroad, which is estimated to cost IDR 97tn ($6.8bn) annually.
The Indonesian government is also looking to reduce the import of raw materials for drugs and increase the production of herbal medicines. The Minister of State-Owned Enterprises, Erick Thohir, said that the state-owned pharmaceutical company Indofarma would focus on developing the herbal medicine industry, while Kimia Farma would continue to provide generic drugs to make them more affordable for the public. The government aims to reduce the import of raw materials for drugs by 75% in the next four years. The consolidation of the state-owned healthcare cluster is part of the government's efforts to strengthen the country's healthcare resilience and independence.
The Indonesian Healthcare Corporation (IHC) has been established as a holding company for Bio Farma, Kimia Farma, Indofarma, and several state-owned hospitals. The consolidation of the healthcare cluster is expected to create new opportunities in the healthcare industry, such as vaccine production. Bio Farma is currently working with various parties to develop mRNA or recombinant protein vaccines. The clinical trial of Bio Farma's vaccine began on 13 December, and the government hopes that Indonesia will soon be able to produce vaccines independently.