By Ira A. Eddymurthy and Arvin Raharja
In an effort to strengthen domestic pharmaceutical manufacturers and decrease the dependency on imported raw materials, the Indonesian government issued Presidential Directive No. 6 of 2016 on the Acceleration of the Development of the Pharmaceutical and Medical Equipment Industry.
Then, on May 29, 2020, the Minister of Industry (“MOI“) enacted MOI Regulation No. 16 of 2020 on Provisions and Procedures for the Calculation of Domestic Component Levels for Pharmaceutical Products (“MOI Reg. 16/2020“). This regulation outlines the components of and the method for calculating the local content level for pharmaceutical finished goods and raw materials (“Pharmaceutical Products“). It also stipulates the procedure for obtaining a certificate showing the local content level of Pharmaceutical Products.