Global Business Guide Indonesia

Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia
Joint Ventures | Technology Transfer | Export
DIPA Healthcare | Mr Utojo Pusposuharto
Mr Utojo Pusposuharto

Our products stand out by having very few direct competitors, supporting our vision to be the fastest-growing healthcare company in Indonesia

Mr Utojo Pusposuharto, President Director

DIPA Healthcare was established as a pharmaceutical company and has since evolved into one of the leading players in Indonesia's healthcare sector. What more can you tell us about the company's background and your main strategies going forward?

In the 1970s, my father started Pradja Pharmaceutical Industry. By the 1980s, the company grew to be one of the top three largest pharmaceutical companies in Indonesia. Unfortunately, we were forced to sell Pradja Pharmaceutical Industry in the 1990s due to a case of financial mismanagement.

This outcome, nonetheless, has been a blessing in disguise. When the 1997 Asian financial crisis hit Indonesia, we already sold the company along with its substantial amount of liabilities despite it being our biggest asset. We started all over again through DIPA Healthcare. Our company has made significant progress ever since and has developed many products over the last 10 years. This was accomplished through the support of our business partners, from pharmaceuticals, medical equipment to analytical companies, which number to over 30 major players around the globe including one of the top three blood plasma derivative producers.

The key to our current prominence is the revision of our corporate strategy in 2000. We established ourselves as a healthcare company as opposed to just a pharmaceutical company. DIPA Healthcare also revised its core values, namely to focus on determination, integrity, performance and attentiveness. We also set ourselves apart from our competitors by mainly producing in-house-developed products, such as Indonesia’s first generic Crestor (Rosuvastatin), the first generic Valsartan, as well as blood plasma products in cooperation with a Barcelona-based business partner through a USA-based factory.

DIPA Healthcare avoids direct competition to 80% of around the 230 pharmaceutical companies in Indonesia and aims for products not yet available in the local market. We found this to be an effective strategy as proven by the current situation. With Indonesia’s new universal healthcare program in place [BPJS], most companies selling common generic drugs are facing pressure to lower the price of their products. DIPA Healthcare is not among those affected. Our products stand out by having very few direct competitors, supporting our vision to be the fastest-growing healthcare company in Indonesia. DIPA Healthcare has also been consistent in being above the industry average and recording double-digit levels in terms of growth for the last 10 years.

In view of the BPJS, rising purchasing power and the growth of the middle class, what is your short and medium-term outlook for the healthcare sector in Indonesia?

We divide the healthcare market into two; the regular market and the healthcare system. Referring to this, the driver for growth has always been the middle class and the BPJS. For the short-term, because the BPJS has just been implemented in 2014 and there was an economic hiccup, the pharmaceutical sector was under pressure. 2015 will be subject to relatively similar conditions. In 2016, however, we expect the situation to improve.

Having said that, progress is needed in terms of infrastructure development, hospital growth and distribution, the adequate number of physicians and equipment, as well as the BPJS itself which only covers around 160 million out of 250 million people in Indonesia. As for the medium and long-term, the outlook is very positive.

The ASEAN Economic Community will soon be implemented in January 2016. Given this context, what opportunities do you see for DIPA Healthcare on the regional stage?

50% of ASEAN’s population is in Indonesia, making our country the main target for other member states. DIPA Healthcare itself is preparing new products slated for regional markets. We are also making efforts to build a network of regional business partners as it will ease the process of entering other countries. 

What are DIPA Healthcare’s priorities in terms of innovation and preparing new products?

We continue to prioritise the development of first generic products. It is a difficult task as even the global players do not have the next breakthrough product for the next 5 to 10 years. DIPA Healthcare has yet to have the capacity to be on par, but nonetheless we are already laying the path towards that goal, targeting the next off-patent drug to be developed. We are also planning to develop products not yet made in Indonesia as well as in the region, such as blood plasma and insulin.

In terms of international cooperation, what is your company’s position?

Every year, we forge new partnerships with foreign companies. If you put that into perspective, given that many foreign companies are still reluctant to do business in Asia under the notion that good business partners are hard to come by, DIPA Healthcare has indeed been the preferred partner because of our proven track record. We expect to see increasing engagements with diverse business partners. Our company is always open to this type of opportunity within the context of finding strategic partners for the long-term. Technology transfer is our first priority to look for in potential partners.

What is your message and final thought that you would like to share with our readers?

Indonesia’s healthcare industry, particularly pharmaceuticals, is a highly regulated sector. For products to be able to enter the Indonesian market, they need to comply with all applicable regulations. Our products abide by these requirements, meeting the high standards of quality, manufacturing and distribution practices, pharmacovigilance and quality assurance. We welcome joint venture opportunities with partners having the same spirit as well as business ethics in pursuing long-term cooperation.

Global Business Guide Indonesia - 2015

icone share