CONSUMER HEALTH IN

INDONESIA
Euromonitor International
October 2017
CONSUMER HEALTH IN INDONESIA Passport I

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Positive Outlook for Consumer Health in Indonesia.................................................................. 1
Indonesia’s National Healthcare Insurance Plays An Important Role ....................................... 1
Kalbe Farma and Tempo Scan Pacific Continue To Lead in 2017 ........................................... 1
the Escalating Trend Towards Internet Retailing ...................................................................... 1
Promising Performance Expected for Consumer Health .......................................................... 2
Market Indicators .......................................................................................................................... 2
Table 1 Consumer Expenditure on Health Goods and Medical Services: Value
2012-2017 .................................................................................................... 2
Table 2 Life Expectancy at Birth 2012-2017 ............................................................. 2
Market Data .................................................................................................................................. 2
Table 3 Sales of Consumer Health by Category: Value 2012-2017 .......................... 2
Table 4 Sales of Consumer Health by Category: % Value Growth 2012-2017 ......... 3
Table 5 NBO Company Shares of Consumer Health: % Value 2013-2017 ............... 3
Table 6 LBN Brand Shares of Consumer Health: % Value 2014-2017 ..................... 4
Table 7 Distribution of Consumer Health by Format: % Value 2012-2017 ................ 5
Table 8 Distribution of Consumer Health by Format and Category: % Value
2017 ............................................................................................................. 6
Table 9 Forecast Sales of Consumer Health by Category: Value 2017-2022 ........... 8
Table 10 Forecast Sales of Consumer Health by Category: % Value Growth
2017-2022 .................................................................................................... 8
Appendix ...................................................................................................................................... 9
OTC Registration and Classification ......................................................................................... 9
Vitamins and Dietary Supplements Registration and Classification ........................................ 10
Self-medication/self-care and Preventive Medicine ................................................................ 11
Switches ................................................................................................................................. 11
Definitions................................................................................................................................... 11
Sources ...................................................................................................................................... 12
Summary 1 Research Sources ...................................................................................... 12

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CONSUMER HEALTH IN INDONESIA Passport 1

CONSUMER HEALTH IN INDONESIA

EXECUTIVE SUMMARY

Positive Outlook for Consumer Health in Indonesia

The consumer health market remained robust in Indonesia in 2017. Most categories
continued to see positive performances, with analgesics, vitamins, dietary supplements and
herbal/traditional products all seeing strong growth. Vitamins and dietary supplements
accounted for nearly half of all sales of consumer health products in Indonesia in 2017. Many
brands launched new products, especially in vitamins, such as Vitacimin White and Vitacimin
Glow. This indicates that this was a dynamic category in 2017. The strong growth rates were
influenced by changes in the weather; due to global warming the Indonesian weather is
becoming more unpredictable, increasing the chances of people catching colds. Furthermore,
the increasing number of workers in society contributed to strong growth. Employees in
Indonesia are becoming more active, sometimes working overtime, which means they often take
vitamins and dietary supplements to support their health. The last factor which significantly
supported demand for vitamins and dietary supplements was the environment. Indonesia, as a
developing country, has problems with sanitation in residential areas. The Indonesian market is
expected to remain positive for consumer health in the forecast period, especially for vitamins
and dietary supplements. Many companies are expected to conduct specific marketing
strategies through social media and television, and will also use celebrity endorsement.

Indonesia’s National Healthcare Insurance Plays An Important Role

A national social security system has been in operation for several years in Indonesia, with
Indonesians’ healthcare now covered by government insurance. This programme has led to the
biggest health reforms in Indonesian history. All medications in hospitals are now free of charge
thanks to this system. However, only prescription medicines are covered by the national social
security system, not OTC products, and in practice, the process which must be followed to
receive the insurance takes time and is complicated. As such, consumers with relatively mild
illnesses tend to take hassle-free OTC medication.

Kalbe Farma and Tempo Scan Pacific Continue To Lead in 2017

Kalbe Farma Tbk Pt and Tempo Scan Pacific Tbk Pt continue to lead consumer health in
Indonesia. They offer numerous brands in the market, which have a wide consumer base all
over Indonesia. They are known for their long-standing OTC brands, such as Neo Entrostop and
Bodrex. Consumers perceive these brands as reliable products due to the long-standing
presence of their owners in Indonesia. Their loyal consumers are those with low to middle
incomes, as their retail prices are very affordable. In addition, they have wide distribution all over
Indonesia, from small warungs to internet retailing, such as K-24. This trend is expected to
continue over the forecast period.

the Escalating Trend Towards Internet Retailing

Consumer health players have begun to observe the rapid growth being seen in internet
retailing. Major companies already have their own official stores through internet marketplaces
such as Shopee, Lazada and Blibli. Drugstores/parapharmacies and chemists/pharmacies are
also entering this channel, for example K-24, which sells many consumer health products, from
analgesics to vitamins and dietary supplements. The growth of internet retailing in Indonesia is

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expected to increase in the forecast period, therefore attracting more companies to establish
official shops on e-commerce platforms. There is also an apparent trend for 24-hour pharmacies
with the ability to deliver after ordering online. This has led to an increase in activities in internet
retailing in Indonesia. It is expected that over the forecast period this trend will continue to
increase rapidly.

Promising Performance Expected for Consumer Health

Indonesia, as one of the most populous countries in the world, possesses a great deal of
potential. As a developing country, it still has many health problems. It is expected that
consumer health will continue to see robust growth in the forecast period. Major companies and
manufacturers are expected to offer more brands in the future to cater to the wide range of
consumers and expand their market shares. It is predicted that vitamins and dietary
supplements will be the focus within consumer health, since these categories saw continuous
growth during the review period. Government regulations are also expected to see no major
revisions in the next five years. The big pharmacy companies will continue to thrive. These
companies are less likely to introduce new brands, but will instead focus on retaining their
consumer base, as they battle head-to-head with other competitors. The emergence of internet
retailing will also influence sales over the forecast period.

MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services: Value 2012-
2017

IDR bn
2012 2013 2014 2015 2016 2017

Pharmaceuticals, 40,006.7 46,176.3 50,005.2 50,865.6 55,138.2 58,058.1

medical appliances/
equipment
Outpatient services 73,901.6 85,027.9 91,849.8 93,269.8 100,997.5 106,215.7
Hospital services 31,320.2 35,981.6 38,822.6 39,390.5 42,638.1 44,819.9
Total 145,228.5 167,185.8 180,677.6 183,525.9 198,773.9 209,093.8
Source: Euromonitor International from official statistics, trade associations, trade interviews

Table 2 Life Expectancy at Birth 2012-2017

years
2012 2013 2014 2015 2016 2017

Males 66.5 66.7 66.8 67.0 67.2 67.3

Females 70.6 70.8 71.0 71.2 71.4 71.6
Source: Euromonitor International from official statistics

MARKET DATA
Table 3 Sales of Consumer Health by Category: Value 2012-2017

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IDR billion
2012 2013 2014 2015 2016 2017

OTC 13,066.3 14,714.5 16,580.5 18,388.8 19,968.3 21,619.1

Sports Nutrition 313.7 364.6 425.1 461.1 495.9 530.6
Vitamins and Dietary 11,987.0 13,842.1 16,031.3 17,874.4 19,441.4 21,145.3
Supplements
Weight Management and 2,342.3 2,959.1 3,719.2 3,817.3 3,968.2 4,206.3
Wellbeing
Herbal/Traditional 5,873.7 6,719.2 7,742.6 8,724.6 9,623.3 10,563.1
Products
Allergy Care 4.9 4.6 4.1 3.7 3.2 2.8
Paediatric Consumer 2,674.5 3,138.1 3,695.8 4,211.0 4,670.4 5,174.2
Health
Consumer Health 27,709.3 31,880.3 36,756.0 40,541.7 43,873.8 47,501.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note 1: Consumer health total is the sum of OTC, sports nutrition, vitamins and dietary supplements and weight
management and wellbeing.
Note 2: Sum of categories is greater than the market size because allergy care is a duplicate of categories found
in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an
aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional
products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements.
Note 3: 2017 data is provisional and based on part-year estimates.

Table 4 Sales of Consumer Health by Category: % Value Growth 2012-2017

% current value growth

2016/17 2012-17 CAGR 2012/17 Total

OTC 8.3 10.6 65.5

Sports Nutrition 7.0 11.1 69.1
Vitamins and Dietary Supplements 8.8 12.0 76.4
Weight Management and Wellbeing 6.0 12.4 79.6
Herbal/Traditional Products 9.8 12.5 79.8
Allergy Care -13.2 -10.7 -43.1
Paediatric Consumer Health 10.8 14.1 93.5
Consumer Health 8.3 11.4 71.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note 1: Consumer health total is the sum of OTC, sports nutrition, vitamins and dietary supplements and weight
management and wellbeing.
Note 2: Sum of categories is greater than the market size because allergy care is a duplicate of categories found
in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an
aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional
products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements.
Note 3: 2017 data is provisional and based on part-year estimates.

Table 5 NBO Company Shares of Consumer Health: % Value 2013-2017

% retail value rsp

Company 2013 2014 2015 2016 2017

Kalbe Farma Tbk PT 7.2 7.3 7.5 7.6 7.8

Tempo Scan Pacific Tbk PT 6.4 6.3 5.9 5.6 5.4
Sido Muncul PT 3.8 3.9 4.1 4.3 4.4
Konimex Pharmaceutical 3.7 3.6 3.6 3.6 3.5
Laboratories PT
Bayer Indonesia PT 3.2 3.2 3.3 3.3 3.3

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Soho Industri Pharmasi PT 2.7 2.7 2.9 3.1 3.2

Herbalife Indonesia PT 3.5 3.5 3.3 3.2 3.2
Deltomed Laboratories PT 2.8 2.9 3.0 3.1 3.2
Combiphar PT 2.1 2.1 2.2 2.2 2.2
Citra Nusa Insan 2.2 2.2 2.1 2.0 2.0
Cemerlang PT
Medifarma Laboratories 1.8 1.8 1.8 1.8 1.8
Inc PT
Johnson & Johnson 1.9 1.8 1.8 1.8 1.8
Indonesia PT
Sterling Products 1.9 1.6 1.7 1.7 1.7
Indonesia PT
Darya-Varia Laboratoria 1.3 1.4 1.5 1.5 1.5
Tbk PT
Bintang Toedjoe PT 1.7 1.6 1.5 1.5 1.4
K-Link Indonesia PT 1.2 1.2 1.3 1.3 1.3
Merck Tbk PT 1.5 1.4 1.4 1.3 1.3
Beiersdorf Indonesia PT 1.5 1.3 1.3 1.2 1.2
Sanbe Farma PT 1.2 1.2 1.2 1.2 1.2
Pharos Indonesia PT 1.1 1.1 1.1 1.1 1.1
Dexa Medica PT 0.9 0.9 1.0 1.0 1.1
Hisamitsu Pharma 0.9 0.9 1.0 1.1 1.1
Indonesia PT
Indocare Citrapasific PT 0.9 1.0 1.0 1.0 1.0
PGT Healthcare 1.0 1.0 1.0 1.0 1.0
Mahakam Beta Farma PT 0.9 0.9 0.8 0.8 1.0
Taisho Pharmaceutical 1.0 1.0 1.0 1.0 0.9
Indonesia Tbk PT
Amindoway Jaya PT 1.0 1.0 1.0 0.9 0.9
Nutrifood Indonesia PT 0.6 0.8 0.9 0.9 0.9
Bernofarm PT 0.9 0.9 0.9 0.8 0.8
Abbott Indonesia PT 0.8 0.7 0.7 0.7 0.7
Others 38.2 38.7 38.4 38.2 38.2
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Consumer Health: % Value 2014-2017

% retail value rsp

Brand (GBO) Company (NBO) 2014 2015 2016 2017

Herbalife Herbalife Indonesia PT 3.5 3.3 3.2 3.2

(Herbalife Ltd)
Antangin Deltomed Laboratories PT 2.3 2.4 2.5 2.6
Tolak Angin Sido Muncul PT 2.9 3.1 2.7 2.5
Redoxon (Bayer AG) Bayer Indonesia PT 2.0 2.1 2.2 2.2
Promag Kalbe Farma Tbk PT 2.0 2.1 2.1 2.2
OBH Combi Combiphar PT 1.9 2.0 2.0 2.0
Hemaviton Tempo Scan Pacific Tbk PT 2.2 2.0 1.9 1.8
Paramex Konimex Pharmaceutical 1.9 1.9 1.9 1.8
Laboratories PT
Mixagrip Kalbe Farma Tbk PT 1.6 1.7 1.7 1.8
CNI Citra Nusa Insan 1.9 1.9 1.8 1.8
Cemerlang PT
Bodrex Tempo Scan Pacific Tbk PT 2.0 1.9 1.8 1.7
Curcuma Soho Industri Pharmasi PT 1.2 1.4 1.5 1.6
Natur-E (Darya- Darya-Varia Laboratoria 1.3 1.4 1.4 1.4
Varia Group) Tbk PT

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K-Link (K-Link K-Link Indonesia PT 1.2 1.3 1.3 1.3

International Sdn
Bhd)
Kuku Bima Sido Muncul PT 0.6 0.7 1.1 1.3
Hansaplast Beiersdorf Indonesia PT 1.3 1.3 1.2 1.2
(Beiersdorf AG)
Fatigon Kalbe Farma Tbk PT 1.2 1.2 1.2 1.2
Panadol Sterling Products 1.2 1.2 1.2 1.2
(GlaxoSmithKline Plc) Indonesia PT
Stimuno Dexa Medica PT 0.9 1.0 1.0 1.1
Salonpas (Hisamitsu Hisamitsu Pharma 0.9 1.0 1.1 1.1
Pharmaceutical Co Indonesia PT
Inc)
Diapet Soho Industri Pharmasi PT 1.0 1.0 1.0 1.0
Holisticare Indocare Citrapasific PT 1.0 1.0 1.0 1.0
Vicks (Procter & PGT Healthcare 1.0 1.0 1.0 1.0
Gamble Co, The)
Puyer No 16 (Kalbe Bintang Toedjoe PT 1.1 1.1 1.0 1.0
Farma Tbk PT)
Neo Rheumacyl Tempo Scan Pacific Tbk PT 1.2 1.1 1.0 1.0
Betadine Mahakam Beta Farma PT 0.9 0.8 0.8 1.0
(Mundipharma
International Ltd)
Nutrilite (Amway Amindoway Jaya PT 0.9 0.9 0.9 0.9
Corp)
Biolysin Bernofarm PT 0.9 0.9 0.8 0.8
Neo Entrostop Kalbe Farma Tbk PT 0.7 0.7 0.7 0.7
Daktarin (Johnson & Johnson & Johnson 0.8 0.7 0.7 0.7
Johnson Inc) Indonesia PT
Others Others 56.3 56.0 55.9 56.0
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Distribution of Consumer Health by Format: % Value 2012-2017

% retail value rsp

2012 2013 2014 2015 2016 2017

Store-Based Retailing 87.1 86.4 85.7 86.1 86.2 86.3

- Grocery Retailers 34.6 34.8 34.9 35.4 35.7 35.6
-- Modern Grocery 16.9 17.5 18.1 18.7 19.2 19.1
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 7.9 8.4 8.9 9.4 9.9 9.8
--- Supermarkets 9.0 9.1 9.2 9.3 9.3 9.3
-- Traditional Grocery 17.7 17.3 16.8 16.7 16.5 16.5
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
--- Independent Small 14.9 14.7 14.5 14.5 14.5 14.5
Grocers
--- Other Grocery 2.8 2.6 2.4 2.2 2.1 2.0
Retailers
---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0
---- Other Other 2.8 2.6 2.4 2.2 2.1 2.0
Grocery Retailers

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- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0

-- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
- Non-Grocery Specialists 52.5 51.6 50.7 50.8 50.5 50.7
-- Health and Beauty 51.8 51.0 50.1 50.2 49.9 49.9
Specialist Retailers
--- Beauty Specialist 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
--- Chemists/Pharmacies 30.5 31.4 31.9 33.0 33.7 33.8
--- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Drugstores/ 20.7 19.0 17.6 16.6 15.4 15.3
parapharmacies
--- Other Healthcare 0.6 0.6 0.7 0.7 0.8 0.8
Specialist Retailers
-- Other Non-Grocery 0.6 0.6 0.6 0.5 0.6 0.9
Specialists
Non-Store Retailing 12.8 13.5 14.2 13.8 13.7 13.6
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 1.0 1.1 1.2 1.3 1.4 1.5
- Direct Selling 11.8 12.4 13.0 12.5 12.3 12.1
Total 99.9 99.9 99.9 99.9 99.9 99.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Distribution of Consumer Health by Format and Category: % Value 2017

% retail value rsp

OTC SN VDS WMW HTP AC

Store-Based Retailing 98.6 98.7 80.1 53.2 89.1 98.6

- Grocery Retailers 43.9 21.8 31.9 13.1 37.7 42.2
-- Modern Grocery 16.7 17.9 23.0 12.1 19.6 15.7
Retailers
--- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 7.6 8.4 12.5 8.1 10.0 7.5
--- Supermarkets 9.1 9.4 10.5 4.0 9.5 8.2
-- Traditional Grocery 27.3 3.9 9.0 1.0 18.2 26.5
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
--- Independent Small 22.8 3.9 9.0 1.0 16.7 23.9
Grocers
--- Other Grocery 4.5 0.0 0.0 0.0 1.5 2.6
Retailers
---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0
---- Other Other 4.5 0.0 0.0 0.0 1.5 2.6
Grocery Retailers
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0
-- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
- Non-Grocery Specialists 54.7 76.9 48.2 40.1 51.4 56.4
-- Health and Beauty 54.4 32.5 47.8 39.3 51.1 56.4

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Specialist Retailers
--- Beauty Specialist 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
--- Chemists/Pharmacies 34.1 20.4 35.8 24.0 35.1 36.0
--- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0
--- Drugstores/ 20.3 0.0 10.6 15.3 15.3 20.4
parapharmacies
--- Other Healthcare 0.0 12.1 1.4 0.0 0.7 0.0
Specialist Retailers
-- Other Non-Grocery 0.3 44.4 0.4 0.8 0.3 0.1
Specialists
Non-Store Retailing 1.4 1.3 19.7 46.8 10.8 1.4
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Internet Retailing 1.4 1.3 1.5 1.5 1.5 1.4
- Direct Selling 0.0 0.0 18.2 45.3 9.3 0.0
Total 100.0 100.0 99.8 100.0 99.9 100.0

PCH

Store-Based Retailing 86.9

- Grocery Retailers 36.2
-- Modern Grocery 20.3
Retailers
--- Convenience Stores 0.0
--- Discounters 0.0
--- Forecourt Retailers 0.0
--- Hypermarkets 10.6
--- Supermarkets 9.7
-- Traditional Grocery 15.8
Retailers
--- Food/drink/tobacco 0.0
specialists
--- Independent Small 14.4
Grocers
--- Other Grocery 1.5
Retailers
---- Healthfood shops 0.0
---- Other Other 1.5
Grocery Retailers
- Mixed Retailers 0.0
-- Department Stores 0.0
-- Mass Merchandisers 0.0
-- Variety Stores 0.0
-- Warehouse Clubs 0.0
- Non-Grocery Specialists 50.7
-- Health and Beauty 50.4
Specialist Retailers
--- Beauty Specialist 0.0
Retailers
--- Chemists/Pharmacies 35.5
--- Optical Goods Stores 0.0
--- Drugstores/ 14.0
parapharmacies
--- Other Healthcare 0.9
Specialist Retailers
-- Other Non-Grocery 0.3
Specialists
Non-Store Retailing 13.0
- Vending 0.0
- Homeshopping 0.0

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- Internet Retailing 1.5

- Direct Selling 11.5
Total 99.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WMW = weight
management and wellbeing; HTP = herbal/traditional products; AC = Allergy Care; PCH = paediatric
consumer health

Table 9 Forecast Sales of Consumer Health by Category: Value 2017-2022

IDR billion
2017 2018 2019 2020 2021 2022

OTC 21,619.1 22,485.9 23,337.6 24,185.1 25,025.4 25,860.9

Sports Nutrition 530.6 544.7 557.4 568.7 578.5 588.4
Vitamins and Dietary 21,145.3 22,112.2 23,110.9 24,148.5 25,221.9 26,312.7
Supplements
Weight Management and 4,206.3 4,294.6 4,393.2 4,502.9 4,624.5 4,750.2
Wellbeing
Herbal/Traditional 10,563.1 11,112.6 11,658.6 12,192.7 12,700.3 13,190.6
Products
Allergy Care 2.8 2.3 1.9 1.5 1.2 1.0
Paediatric Consumer 5,174.2 5,509.8 5,859.8 6,224.4 6,601.5 6,990.8
Health
Consumer Health 47,501.3 49,437.4 51,399.1 53,405.2 55,450.4 57,512.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note 1: Consumer health total is the sum of OTC, sports nutrition, vitamins and dietary supplements and weight
management and wellbeing.
Note 2: Sum of categories is greater than the market size because allergy care is a duplicate of categories found
in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an
aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional
products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements.
Note 3: 2017 data is provisional and based on part-year estimates.

Table 10 Forecast Sales of Consumer Health by Category: % Value Growth 2017-2022

% constant value growth

2017/2018 2017-22 CAGR 2017/22 Total

OTC 4.0 3.6 19.6

Sports Nutrition 2.7 2.1 10.9
Vitamins and Dietary Supplements 4.6 4.5 24.4
Weight Management and Wellbeing 2.1 2.5 12.9
Herbal/Traditional Products 5.2 4.5 24.9
Allergy Care -17.5 -19.5 -66.2
Paediatric Consumer Health 6.5 6.2 35.1
Consumer Health 4.1 3.9 21.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note 1: Consumer health total is the sum of OTC, sports nutrition, vitamins and dietary supplements and weight
management and wellbeing.
Note 2: Sum of categories is greater than the market size because allergy care is a duplicate of categories found
in cough, cold and allergy remedies, dermatologicals and eye care; paediatric consumer health is an
aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional
products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements.
Note 3: 2017 data is provisional and based on part-year estimates.

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APPENDIX

OTC Registration and Classification

 The Indonesian pharmaceuticals industry adopts a three-tier system – prescription, OTC and
limited OTC healthcare products, which is a legacy of the Dutch colonial era. In order to make
a clearer distinction between prescription and non-prescription medicines, the government
has further classified the drugs into:
 O – narcotic drugs. These are available to the public on prescription only, and the Ministry
of Health strictly supervises the products on this list.
 G – drugs available to the general public on prescription only. All packaging for these
products displays a red dot.
 G2 – drugs which form part of category G. Consumer advertising is not allowed, but these
drugs may be sold without prescription on the recommendation of a pharmacist.
 W – drugs available to the public only through dispensing chemists/pharmacies or licensed
pharmacies/drugstores. These products include cautionary labelling and display a blue dot
on the packaging. They may be advertised to consumers by manufacturers.
 B – drugs freely available to the public. The packaging for products in this category displays
a green dot. Advertising is permitted for this class of drugs.
 The Indonesian Ministry of Health describes an OTC product as any registered healthcare
product which can be purchased without a prescription. Based on the classification list
adopted in 1998, OTC healthcare products can fall under the G2, W and B categories. Drugs
categorised as G2 and W are also termed as limited OTC drugs, because they can be
purchased only through certain retail channels, such as licensed pharmacies/drugstores and
chemists/pharmacies.
 OTC drugs carrying blue and green dots, as well as traditional remedies and food
supplements, are allowed to be advertised, with no limitations in terms of media type or
airtime. In Indonesia, the guidelines on drug advertising were established in 1994, based on
the World Health Organization’s (WHO) Ethical Criteria for Medicinal Drug Promotion, and
adapted to cater to Indonesians’ needs. Ministry of Health decree number
386/MenKes/SK/IV/1994 regulates the advertising of OTC products, including traditional
remedies and food supplements.
 Three basic regulations are deemed mandatory regarding the advertising of OTC products:
 Advertisements need to be objective and truthful. Claims other than the medicine’s proven
benefits are not allowed.
 Advertisements need to be complete. Benefits, possible side-effects and other known
information related to the drug have to be transparently disclosed in advertisements.
 Advertisements cannot be misleading. In other words, advertising needs to be responsible
and not cause harm to consumers.
 The packaging and labelling of OTC healthcare products in Indonesia are controlled and
supervised by the National Drug and Food Control Agency (BPOM). Standard OTC drugs
have to display the appropriate dot on the packaging. Specifically, all ethical drugs are
indicated with a red dot on the packaging, whereas OTC drugs display a blue dot for those
with limited distribution, or a green dot for those with unrestricted distribution. Meanwhile,
traditional medicines categorised as jamu must show the encircled jamu as an indication of
the category, whilst a label for a food supplement should indicate that the product is a food
supplement. In addition, all legal OTC healthcare products need to display the following
information coherently and transparently on their packaging or labelling:

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 The product registration number issued by the Indonesian Ministry of Health;

 The product’s generic name alone, or with the brand name;
 The name of the manufacturer or importer;
 Drug composition, by listing active ingredients;
 Directions for use, along with dosage form;
 Contraindications, as well as precautions and warnings;
 Date of manufacture and expiration;
 Storage conditions.
 Most manufacturers now outsource their distribution function to an independent distributor.
There are over 100 distributors throughout Indonesia, and depending on their size, nationwide
coverage is possible. Distribution costs in Indonesia are high due to the geography of the
country; thus only a few distributors stand out in pharmaceutical products. Indonesia’s two
most prominent distributors in pharmaceutical products are Enseval Putera Megatrading,
more popularly known as Enseval, and Anugerah Pharmindo Lestari - both are independent
nationwide distributors. Distributors are usually affiliated to the manufacturing companies, and
enjoy discounts because of their relationship. For example, one of Indonesia’s largest
pharmaceutical companies, Kalbe Farma, gives its distributor Enseval a 15-17% discount for
pharmaceutical products due to Enseval’s affiliation to the company. Enseval then gives
further discounts of 5-10% to its retailers. As a result, prices from these distributors to retailers
are much cheaper than the manufacturer’s direct prices to retailers. There are also several
pharmaceutical manufacturing companies which have their own distributors. An example is
Kimia Farma (Persero), which manufactures and distributes its own products, and Soho
Industri Pharmasi also has its own distribution company, Parit Padang. By using their own
distributors, manufacturers can save costs, thus boosting profits.

Vitamins and Dietary Supplements Registration and Classification

 In 1996, DITJEN POM – known as BPOM after structural changes in 2001 – issued regulation
number HK.00.063.02360 on food supplements. As the regulation was not being closely
followed by several manufacturers of food supplements, BPOM issued the latest regulation on
the basic principles of food supplements supervision. Released in August 2004, regulation
number HK.00.05.23.3644 controls the criteria for food supplements that are allowed to be
produced and distributed in Indonesia, including the approved ingredients and the condition of
the packaging and labelling, as well as the advertising of food supplements. As such, food
supplements produced, imported and distributed in Indonesia must conform to the
requirements stated in the regulation. The registration process for food supplements is further
legalised by BPOM’s regulation number HK.00.05.41.1381, which was released in March
2005.
 Similar to OTC drugs carrying blue and green dots, vitamins and dietary supplements are
allowed to be advertised with no limitations in terms of media type or airtime. In Indonesia, the
guideline on drug advertising was established in 1994, based on the World Health
Organization’s (WHO) Ethical Criteria for Medicinal Drug Promotion and adapted to cater to
Indonesian needs. The Ministry of Health decree number 386/MenKes/SK/IV/1994 regulates
the advertising of OTC products, as well as vitamins and dietary supplements.
 Regarding packaging and labelling, chapter VI of the regulation states that food supplements
need to display the following information coherently and transparently on their packaging or
labelling:
 The words “Suplemen Makanan” (“food supplement”);
 The product’s generic name alone, or with the brand name;
 The name and address of the manufacturer or importer;

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 The pack size, content and net weight;

 The product composition, by listing active ingredients;
 The alcohol content, if any;
 Directions for use, along with dosage form;
 Contraindications, as well as precautions and warnings;
 The product registration number issued by the Indonesian Ministry of Health;
 Date of manufacture and expiration.
 Over the review period, direct selling was an important distribution channel for vitamins and
dietary supplements in Indonesia. This is because consumers become interested in or more
convinced to buy such products once they hear testimonies and recommendations about the
efficacy of these products from friends or relatives, rather than depending solely on company
claims.

Self-medication/self-care and Preventive Medicine

 The government formed BPJS Health, which started operating in 2014, as a health insurance
programme throughout the community. This was according to the mandate of the BPJS
Health Act, namely UU40/2004 of the National Social Security System and UU24/2011 of the
Social Security Agency. Health insurance is provided by companies for their employees and
their families, or some individuals provide for themselves and their families. To help the lower
classes, the government pays the cost of medical treatment for the poor, under the National
Social Security System.
 Low-income people do not have to worry about the high cost of prescription medicines or
doctors’ fees. The cost of doctors and medicines are no longer burdensome. Public
awareness of the importance of health has also increased, in line with information provided.
Self-medication/self-care does not guarantee that health problems will be solved quickly;
therefore, indirectly the government encourages people to visit a doctor.

Switches
 The terms “switching” or “de-listing” are not common in Indonesia, where there is no official
government policy regarding the switching of active ingredients to OTC. OTC registration and
switching in Indonesia is carried out on a case-by-case basis, which requires a manufacturer
to request that its ethical product be listed as OTC. Rx-to-OTC switching in the country is
carried out by BPOM, which closely follows guidelines laid down by the US Food and Drug
Administration (FDA). Accordingly, active ingredients classified as OTC in the US are likely to
attain the same classification in Indonesia. There have been no switches in recent years.

DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
 Jamu: Indonesian herbal medicine made from natural ingredients which can function as a
health and beauty product. What makes jamu unique amongst other types of OTC herbal
products is its combination of multiple natural ingredients locally formulated for either treating
sickness or as health supplements. Jamu’s active ingredients can also be used in cosmetic
products. For example, akar manis is used as a whitening ingredient in moisturisers and
cleansers. Due to the difficulties in clinical testing of the multiple active ingredients present in
jamu, these products are still not recognised in the standard field of Western OTC products in
Indonesia.
 SJSN: an acronym for Sistem Jaminan Sosial Nasional (National Social Security System), a
new social security system implemented in 2014, which guarantees full health protection.

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SOURCES
Sources used during the research included the following:

Summary 1 Research Sources

Official Sources BPOM
Depkes
Trade Associations Association of the European Self-Medication
Industry (AESGP)
Indonesian Pharmaceutical Industry
Association
Trade Press Bisnis Indonesia
Health Today Indonesia
Indo Finanz
Informasi Spesialite Obat (ISO)
Investor Indonesia Magazine
Klinik Pria
Kompas Newspaper
Main Saham
MIX Magazine
Satu Lelaki
Sinar Harapan
Suara Merdeka
SWA Magazine
Source: Euromonitor International

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