Market overview: The halal pharmaceutical market in Indonesia is a rapidly growing industry due to the country’s large Muslim population and the government’s endeavor to promote the development of the halal pharmaceutical sector, setting a target for the halal pharmaceutical industry to contribute 10% of the country’s total pharmaceutical market by 2024. This has led to increased investment in the industry, with companies expanding their halal-certified product offerings and building new production facilities to meet the growing demand for halal pharmaceuticals in Indonesia.

Local companies such as Kimia Farma, Pharos Indonesia, and Darya-Varia Laboratoria are among the leading halal pharmaceutical manufacturers in Indonesia. International pharmaceutical companies such as Pfizer and Abbott Laboratories have also entered the halal pharmaceutical market in Indonesia by obtaining halal certification for some of their products.

Market Size: Indonesia has a population of 277 million of which 87% are Muslims

Market Potential: The Indonesian total Pharmaceuticals Muslim Consumer Market Size hit $5.4 Bn in 2021. And according to a report by Grand View Research, the halal pharmaceutical market in Indonesia was valued at USD 960 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.7% from 2020 to 2027.

Market Activity: The halal pharmaceutical market in Indonesia is very active, with companies investing in research and development, production, distribution, and marketing of halal-certified pharmaceutical products. Companies are also expanding their product lines to include more halal-certified drugs, investing in new halal production facilities, and improving their manufacturing processes to meet the growing demand.