Indonesia
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 efforts to promote the development of the 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 Etana, Kimia Farma, Pharos Indonesia, and Darya-Varia Laboratoria are among the leading halal pharmaceutical manufacturers in Indonesia. International pharmaceutical companies such as Abbott Laboratories have also entered the halal pharmaceutical market in Indonesia by obtaining halal certification for some of their products.
Regulations: By 2026, all products that are imported, distributed and traded in Indonesia must be certified halal, unless they are non-halal products. Non-halal products must be accompanied by the information that they are ‘non-halal’. In addition, the government is requiring pharmaceutical products to be certified halal by 2029 for over-the counter drugs and by 2034 for prescription medicine.
Market Size: Indonesia has a population of 277 million of which 87% are Muslim.
Market Potential: The Indonesian total Pharmaceuticals Muslim Consumer Market Size hit $5.4 Bn in 2021.
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.