BPOM Head Reveals War's Impact on Medicines in Indonesia, Prices Could Rise

Geopolitical turbulence triggered by the war in the Middle East is beginning to directly impact the domestic health sector. The National Agency of Drug and Food Control (BPOM) has warned that international conflicts could lead to price increases for medicines in Indonesia.

BPOM Head Taruna Ikrar revealed that one of the causes is the pharmaceutical industry’s high dependence on imported raw materials, including those derived from oil or petrochemicals.

“More than 50% of medicine packaging is petrochemical-based. Even around 30% of chemical drug ingredients also come from the same derivatives, such as paracetamol and ibuprofen,” Taruna stated after a meeting with Commission IX of the House of Representatives at the DPR Building, Senayan, Jakarta, on Monday (20/4/2026).

He said that when global oil prices are shaken by conflicts or wars, the effects can immediately be felt in medicine production costs. Not only that, Indonesia still heavily relies on imports for pharmaceutical raw materials.

BPOM records show that more than 90% of raw materials, intermediate products, and biosimilars are still sourced from abroad. This condition makes the national pharmaceutical industry vulnerable to global supply chain disruptions.

Nevertheless, BPOM assures that the current situation remains relatively safe. Medicine availability is estimated to be sufficient to meet needs for the next six months, but if global conflicts continue, pressure on medicine prices and supplies could intensify.

“If the war continues, it will definitely have an impact. Because it’s not just prices, but availability also becomes a key issue,” Taruna explained.

To anticipate this, BPOM is preparing two main steps. First, Taruna clarified, relaxing medicine packaging regulations. The pharmaceutical industry will be allowed to change packaging types without undergoing lengthy testing processes, as long as they still meet safety standards.

“This step is important because packaging costs can contribute up to 30% of medicine prices,” he said.

Second, diversifying sources of imported raw materials. So far, Indonesia has relied heavily on countries like China, India, and Europe.

Going forward, BPOM will encourage cooperation with other countries as alternatives, including opportunities from the Pacific region to Russia. Taruna also emphasised that the main issue is not only price increases but also medicine availability for the public.

“If medicines are unavailable, even if cheap, they still can’t be used. So what we are safeguarding is both: price and availability,” he asserted.