Indonesia’s natural-based pharmaceutical industry (Obat Bahan Alam/OBA) continues to thrive despite global economic uncertainties. In 2024, the sector recorded USD 6.3 million in exports and maintained strong industrial confidence, with the pharmaceutical and traditional medicine sector (KBLI 21) ranking second highest in Indonesia’s Industrial Confidence Index (IKI) as of March 2025. In response, the Ministry of Industry (Kemenperin) is ramping up support to reduce reliance on imported raw materials and achieve greater self-sufficiency in national medicine production.
Key to this initiative is the development of the House of Wellness, a modern facility at the Center for Standardization and Industrial Services for Pharmaceuticals and Packaging (BBSPJIKFK) in Jakarta. The center, equipped with advanced technologies for processing medicinal plants and producing herbal extracts, adheres to CPOTB (Good Traditional Medicine Manufacturing Practices). It forms part of the national task force promoting fitofarmaka (scientifically validated herbal medicines), aiming to include these in Indonesia’s national health insurance (JKN). In collaboration with institutions like BPOM, IPB, UGM, and private labs, BBSPJIKFK also participates in the Herbal Medicine Testing Laboratory Network (JLPOBA), which supports quality assurance and regulatory oversight. While over 15,000 herbal products are registered, only 20 currently meet fitofarmaka standards—signaling vast untapped potential in Indonesia’s biodiversity. By fostering public-private partnerships and enhancing lab capabilities, the government aims to increase public trust in local herbal medicine and elevate its global competitiveness.
