Public ID: PID-89JORG
Localisation requirements affecting UK pharmaceuticals exporters in Indonesia
Trade barrier summary
Indonesia’s Ministry of Health (MOH) Decree 1010 (2010) prevents Multinational Cooperations (MNCs) and other overseas businesses from obtaining market authorisation for their products unless a local manufacturing facility is established or, sensitive intellectual property is transferred to another pharmaceutical firm with local manufacturing facilities in Indonesia.
The regulation intends to encourage MNCs to establish their company locally, including through joint ventures, rather than using importers or agents. The consequence, however, is that MNCs are restricted compared to local companies, who have greater operational flexibility. This is particularly problematic for MNCs looking to introduce a small volume but high value product into the market.
- Pharmaceuticals and biotechnology
14 September 2020
18 December 2020