Client: B&S Europe

In 2020, Svara Institute ( Formerly Presisi Indonesia) had the opportunity to collaborate with European Business and Strategies (B&S) to carry out a study entitled "Rebuilding Inclusive Value Chains in a Volatile World". This study is a part of preparing the Islamic Development Bank Member Country Partnership Strategy (IsDB-MCPS) for Indonesia 2021-2025 through a global value chain (GVC) approach, where one of the sectors studied is the pharmaceutical industry. In this study, the research team from Svara Institute was tasked with compiling the development of the pharmaceutical industry, both in Indonesia and globally, by using secondary data such as export, import, production, and analysis of business actors and product value chains. In addition, we is also tasked with providing strategic project proposals to encourage Indonesia's participation in the global pharmaceutical product value chain. 

The results of our study show that the pharmaceutical industry is one of Indonesia's crucial and relatively strong industries in manufacturing and productivity. In the global value chain (GVC) participation, the pharmaceutical industry has been established as one of the priority focuses in Making Indonesia 4.0. However, in its development, there are several challenges faced by the pharmaceutical industry, including limited innovation and research facilities, reliance on imported inputs, lack of technology acquisition, and unavailability of human resources to increase added value. Therefore, this study was conducted to solve the challenges and obstacles in developing Indonesia's pharmaceutical industry. In addition, an in-depth identification was conducted regarding several potential aspects that can increase the global competitiveness of the pharmaceutical industry. It aims to create opportunities for Indonesia to improve the value chain of the pharmaceutical industry, which can contribute significantly to achieving the expected national goals.