1.

Introduction

1.1.
Definition
The pharmaceutical industry discovers, develops, produces, and markets drugs or
pharmaceuticals for use as medications. Pharmaceutical companies may deal in generic or
brand medications and medical devices. They are subject to a variety of laws and
regulations that govern the patenting, testing, safety, efficacy and marketing of drugs. Some
examples of pharmaceutical companies are:
Bayer
Kalbe Farma
Kimia Farma
1.2.
Types of Drugs
There are three types of drugs available in market:
Ethical/prescription drugs - Drugs that requires doctors prescription to be
bought legally
Over The Counter (OTC) drugs - Drugs that doesnt require doctor
prescription
Generic drugs - Copies of brand-name drugs that have exactly the same
dosage, intended use, effects, side effects, route of administration, risks, safety, and
strength as the original drug. Obat Generik Berlogo (OGB), generic drugs promoted
by government in a cheaper price, is also included in this type.
1.3.
Steps to Producing Drugs
The process to convert idea of a new drug to finished product are as follows:
1. A company have an idea to produce a new drug. That company may or may
not make a prototype beforehand
2. The company patented the idea that includes composition and brand name
3. The company registered the drug to the government.
4. The drug undergoes testing to proof that it is effective and safe for
consumption
5. After the drug passed the tests, the company is able to sell the drug to the
market
6. Just before the patent expired, the company proposed to sell a generic
version of the drug to the government to gain advantage over incoming competitors
2.

Discussion
2.1.

Indonesias Pharmaceutical Industry in Graphs

Indonesia spent only 3.1% of its

total GDP into healthcare
expenditures. This amount is lesser
than neighbouring countries, for
example Cambodia spent 7.5% for
its healthcare.

Indonesias pharmaceutical market

are growing from 2010-2014 by
12%. The market is expected to
continue growing because of many
reasons, including, but not limited
to, the increase in population,
increase in public awareness of
healthcare, and increase in
economic power.

The share of drugs purchased in

Indonesia mainly dominated by
ethical and branded generic drugs,
followed closely by OTC drugs.
OGB drugs however, is consumed
by far less users than the other two
types.

3.
References
https://en.wikipedia.org/wiki/Pharmaceutical_industry
http://www.medicinenet.com/script/main/art.asp?articlekey=46204

3.1.