Indonesia’s pharmaceutical and food industries may contribute about Rp10 thousand trillion per year to the national economy, equivalent to 35-40 percent of GDP, the National Agency of Drug and Food Control (BPOM) said on Thursday.
Sector size and registrations
BPOM’s head, Taruna Ikrar, stated there are 45,000 large companies and 4.2 million UMKM operating in the pharmaceutical and food sectors. He said total business actors in this field reach 4.3 million.
The number of processed food UMKM registered with BPOM includes 2,900 medium, 4,600 small, and 7,900 micro businesses.
Economic potential and support
Ikrar said the Rp10 thousand trillion figure—equal to roughly 558.32 billion US dollars—is not speculative, as revenue in this sector ranges broadly from hundreds of millions to even trillions of rupiah per year across various companies.
He added BPOM is committed to transforming its role beyond regulatory oversight to include research development, education and downstream processing support, aiming to help Indonesia reach an 8 percent national growth target.
Regulatory efforts and growth goals
BPOM is working to accelerate regulatory services and licensing to help businesses increase production capacity and scale from micro to small enterprises. Ikrar said this strategic support aligns with national plans to transition Indonesia from a middle-income to a developed country.
The agency’s efforts also intend to back President Prabowo and the government in achieving these economic objectives by optimising the pharmaceutical and food industries’ contributions to GDP, which has reached Rp23 thousand trillion.
Source: the National Agency of Drug and Food Control (BPOM)
