Executive Summary

Key insights and market outlook

The Indonesian pharmaceutical industry is sounding the alarm about potential drug shortages in 2025 due to the planned cessation of salt imports. The sector relies entirely on imported pharmaceutical-grade salt (garam farmasi), with annual requirements reaching 5,200 tons. Local producers currently lack the capacity to meet this demand, with only 120-360 tons annual production capacity ¹

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Full Analysis

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Deep Dive Analysis

Pharmaceutical Industry Warns of Potential Drug Shortages

Impact of Stopping Salt Imports

The Indonesian pharmaceutical industry is raising concerns about the potential consequences of halting salt imports in 2025. The sector's reliance on pharmaceutical-grade salt (PGS) is total, with annual requirements amounting to 5,200 tons ¹

. Currently, all of this demand is met through imports as local production falls significantly short.

Local Production Capacity Constraints

According to Elfiano Rizaldi, Executive Director of GP Farmasi Indonesia, local producers are struggling to meet industry needs. The current production capacity of local PGS manufacturers ranges between 120-360 tons per year, far below the industry's requirements ²

. While there are plans for expansion, with three additional local producers in the pipeline, they are still in the stability testing and registration phase, which is expected to take 7-8 months before their products can be used in drug manufacturing ².

Critical Pharmaceutical Products Affected

The shortage of PGS would impact the production of critical pharmaceutical products, particularly sterile liquid medicines. These include normal saline (NaCl 0.9%) solutions in various sizes and Ringer's Lactate solutions, which are essential for medical treatments ¹

. The pharmaceutical industry uses PGS both as an active ingredient and as an excipient in various formulations.

Industry Stakeholders' Concerns

Industry stakeholders are urging policymakers to consider the potential consequences of stopping salt imports. The immediate impact would be felt in the production of essential medicines, potentially leading to shortages and disrupting healthcare services. The industry is calling for a balanced approach that ensures both the development of local salt production capacity and the continuity of pharmaceutical manufacturing ¹

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References