Sanofi is a European-based pharmaceutical company with one of the largest reaches in the world. Please describe the evolution of its presence in Indonesia.

Sanofi was among the early multinational pharmaceutical companies to establish operations in Indonesia in the 1950s. By 1972, we began our manufacturing operations. Today, Sanofi Indonesia is a full-scale subsidiary of our parent company, with dedicated business units for manufacturing, pharmaceutical operations, vaccines, and consumer health care. We have approximately 800 employees in Indonesia, making us one of the leading multinational pharmaceutical companies in the country.

What product area does Sanofi consider its specialty in Indonesia?

Sanofi’s activity in Indonesia covers various therapeutic areas, reflecting the diversity of our product portfolio as a multinational company. We have three key business drivers in Indonesia: diabetes, vaccines, and consumer health care. Globally, Sanofi is a leading provider in diabetes treatment, offering a range of insulin products, both innovative and low-cost alternatives, as well as oral tablets. We also provide training initiatives to support industry experts. In the future, we plan to explore the application of diagnostic kits for diabetes in Indonesia, as the country is projected to have a significant number of diabetes patients in the coming years. Sanofi is also a world leader in vaccine production, including pediatric vaccines, flu vaccines (where we are the largest producer globally), and rabies vaccines (where we are the largest provider in Indonesia). In the next few years, we will launch a vaccine for dengue fever, which will be the world’s first of its kind. Additionally, Sanofi is one of the top-five producers of over-the-counter (OTC) products globally, and we see great growth potential for this segment in Indonesia.

With the implementation of BPJS, massive changes are underway in Indonesia’s pharmaceutical sector. How does Sanofi develop growth strategies and adapt its business model to account for changes within the market?

The past five years have been relatively stable, but recent market developments have brought significant changes to the industry. Sanofi remains focused on its strategic drivers while also being open to addressing market needs. We analyze how the market could evolve and ensure that we have the necessary products to support the public sector. For example, if BPJS requires a significant amount of insulin for diabetes treatment, Sanofi wants to be ready to support the government. We remain adaptable to changes in the market and strive to align our growth strategies with evolving healthcare policies.

The Indonesian government has stated that it wants to double healthcare spending over the next five years. How will it execute this vision?

Increasing healthcare spending will have positive implications for Indonesia. While not all of the funds will be spent on medication (medicines typically account for less than 10% of healthcare funds), the government will likely allocate a significant portion of its budget to healthcare infrastructure development. The plan’s execution will focus on the development of primary healthcare systems and healthcare professionals, including doctors.

What will Sanofi’s role be in bridging Indonesia’s healthcare gap?

Sanofi can play a significant role in educating physicians, similar to the services we currently provide for diabetes. We will also prioritize the development of innovative medicines in Indonesia, leveraging Sanofi’s global research and development network. However, for Sanofi to have a greater impact, the government needs to establish an environment that encourages the use of innovative medicines. We are willing to work with the government to create innovative solutions that bring long-term improvements to Indonesia’s healthcare system. Furthermore, we are considering partnerships with local companies to enhance our impact and deliver greater value to the people of Indonesia.

It is forecasted that demand for pharmaceuticals in Indonesia will grow substantially. What developments need to occur within the industry?

Indonesia’s pharmaceutical industry has tremendous potential, but its healthcare sector is not yet fully developed. Several factors can contribute to its growth, including increased foreign investment. However, there is a need for comprehensive regulations that encourage research and development (R&D) and the production of innovative products. This requires mechanisms within the Indonesian National Agency of Drug and Food Control (BPOM) to support R&D and incentivize the creation of innovative pharmaceutical products. The industry’s development will also benefit from Indonesian pharmaceutical manufacturers assessing how they can move up the value chain and diversify their offerings beyond generics, focusing on innovative products.