# Indonesia Strengthens Pharma Sector with Novo Nordisk Partnership

- Link: https://www.thailand-business-news.com/asean/indonesia/153492-indonesia-strengthens-pharma-sector-with-novo-nordisk-partnership
- Published: 2024-07-27T04:12:00+07:00
- Author: ASEAN Briefing

Novo Nordisk partners with Indonesia’s Bio Farma to package insulin locally. This
collaboration may make Indonesia attractive to global pharma companies. However,
challenges include regulatory complexities, counterfeit drugs, and high import reliance.

## Novo Nordisk Teams Up with Bio Farma

Danish pharmaceutical giant Novo Nordisk has entered into an agreement with Indonesian
state-owned firm Bio Farma to package insulin locally. Novo Nordisk, which produces
half of the world’s insulin, will leverage its production expertise, while Bio Farma
will use its local manufacturing facilities. This collaboration aims to enhance 
insulin accessibility and affordability in Indonesia.

ADVERTISEMENT

## Potential for Further Investment

The success of this partnership could make Indonesia a magnet for global pharmaceutical
companies seeking to establish operations in Southeast Asia. Effective execution
of this large-scale project can bolster Indonesia’s reputation, attracting additional
investments in biopharmaceutical research and development. This could position the
country as a key player in the regional pharmaceutical industry.

## Indonesia’s Promising Pharmaceutical Industry

Despite its potential, Indonesia’s pharmaceutical industry faces significant challenges,
including complex regulatory hurdles and the prevalence of counterfeit drugs, which
account for 10-15 percent of the market. The industry also heavily depends on imported
raw materials, with about 90 percent sourced from abroad, mainly China and India.
This reliance increases vulnerability to supply chain disruptions and price volatility.
To mitigate these risks, the Indonesian government is focusing on boosting local
production of raw materials.

Danish drugmaker Novo Nordisk has signed an agreement with Indonesian state-owned
pharmaceutical company Bio Farma to package insulin in the country. Novo Nordisk
produces 50 percent of the world’s insulin.

Through the collaboration, Novo Nordisk will provide its expertise in insulin production
whilst Bio Farma will provide the local manufacturing facilities.

The success of this partnership could position Indonesia as an attractive destination
for other global pharmaceutical companies looking to expand their operations in 
Southeast Asia. Demonstrating the ability to successfully collaborate on large-scale
pharmaceutical projects can enhance the country’s reputation and attract further
investment in biopharmaceutical research and development.

### Related**Posts**

###  󠀁[Offering incentives for companies on the Green List with the IDX Green Equity designation](https://www.thailand-business-news.com/asean/indonesia/331229-offering-incentives-for-companies-on-the-green-list-with-the-idx-green-equity-designation)󠁿

###  󠀁[Indonesia Representative Offices: What They Can and Cannot Do](https://www.thailand-business-news.com/asean/324537-indonesia-representative-offices-what-they-can-and-cannot-do)󠁿

###  󠀁[Which Sector-Specific Licenses Do Foreign Investors Need in Indonesia?](https://www.thailand-business-news.com/asean/328338-which-sector-specific-licenses-do-foreign-investors-need-in-indonesia)󠁿

###  󠀁[Weekend Long Read: Why emerging economies in Asia face a tougher road to growth](https://www.thailand-business-news.com/economics/329802-weekend-long-read-why-emerging-economies-in-asia-face-a-tougher-road-to-growth)󠁿

**Read the original article :** [Indonesia Strengthens Pharma Sector with Novo Nordisk Partnership ](https://www.aseanbriefing.com/news/indonesia-strengthens-pharma-sector-with-novo-nordisk-partnership/?rand=151001)

_This article was first published by [ASEAN Briefing](https://www.aseanbriefing.com)
which is produced by [ Dezan Shira & Associates](https://www.dezshira.com/). The
firm assists foreign investors throughout Asia from offices across the world, including
in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write
to [info@dezshira.com](https://www.thailand-business-news.com/asean/indonesia/info@dezshira.com)._