Table 2

Factors pressuring profit margins

Factors that decrease revenueFactors that increase costs

  • Downward price pressures on medicine

  • Inability to secure sales due to inaccurate demand planning on public procurement channel

  • Constrained cash-flow

  • Local content policy—including for active pharmaceutical ingredients

  • Mandatory halal certifications for medicines

  • Local currency (IDR) devaluation

  • IDR, Indonesian rupiah.