Information

This barrier is unrelated to the end of the transition period, following the United Kingdom's departure from the EU.

Public ID: PID-89JORG

Localisation requirements affecting UK pharmaceuticals exporters in Indonesia

in Indonesia

Trade barrier summary

Indonesia’s Ministry of Health (MOH) Decree 1010 (2010) prevents Multinational Cooperations (MNCs) and other overseas businesses from obtaining market authorisation for their products unless a local manufacturing facility is established or, sensitive intellectual property is transferred to another pharmaceutical firm with local manufacturing facilities in Indonesia.
The regulation intends to encourage MNCs to establish their company locally, including through joint ventures, rather than using importers or agents. The consequence, however, is that MNCs are restricted compared to local companies, who have greater operational flexibility. This is particularly problematic for MNCs looking to introduce a small volume but high value product into the market.

Sectors affected

  • Pharmaceuticals and biotechnology

Resolved

No

Date reported

14 September 2020

Last updated

18 December 2020

Public ID

PID-89JORG

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