Indonesian Herbal Industry Aims to Follow in the Footsteps of China and India
The global herbal medicine market continues to grow and is projected to reach US$600 billion, or approximately Rp 9,720 trillion, by 2030. Amidst this massive market potential, Indonesia is beginning to push its modern natural medicine industry, based on biodiversity, to enter the global arena.
Indonesia is considered to possess significant capital, holding the second-largest biodiversity in the world after Brazil, with over 30,000 medicinal plant species. This biological wealth is now being directed towards developing phytopharmaceutical products based on research and modern science.
Professor Raymond R. Tjandrawinata, Business Development and Scientific Affairs Director of PT Dexa Medica and Honorary Professor of Pharmaceutical Biotechnology at Atma Jaya Catholic University of Indonesia, stated that the success of China and India in the herbal industry stems not only from their natural wealth but also from their courage in building integrated healthcare systems.
“Indonesia has the second-largest biodiversity in the world. The next step is to build a healthcare system that integrates biodiversity-based medicines into formal healthcare services, just as China and India have proven,” Raymond said in a statement on Monday.
According to him, China has successfully established Traditional Chinese Medicine (TCM) as an integral part of its national hospital system, leading to its acceptance as a global herbal drug. Meanwhile, India has developed Ayurveda through national-scale hospitals supported by research and clinical trials. Both nations have proven that natural wealth, supported by science and integrated healthcare systems, can produce a world-class health industry.
This growth is reflected in the increasing use of natural-based products as part of daily care. However, despite market growth, the domestic herbal industry still faces challenges, such as low consumer literacy regarding herbal products.
Data from the 2025 Health Statistical Profile released by the Indonesian Central Bureau of Statistics (BPS) shows that the public is increasingly utilising non-medical health products as part of their daily routines. Nevertheless, there remains a gap in understanding regarding product classification, functions, and usage limits.
“Many people still equate herbal products with medical drugs. When expectations are not met, it is the product that is blamed rather than the lack of understanding,” Fazli noted in a statement.
Fazli explained that low consumer literacy causes the herbal market to develop unevenly. On the other hand, the government is beginning to strengthen Indonesia’s position in the global herbal medicine industry through the reinforcement of regulations and phytopharmaceutical research.
The Head of the Indonesian Food and Drug Authority (BPOM), Taruna Ikrar, stated that the government is encouraging national pharmaceutical independence through the development of natural medicines and phytopharmaceuticals.
“BPOM provides regulations and guidelines to ensure compliance with safety, efficacy, and quality. We also continue to encourage the integration of traditional medicine into the national healthcare system,” said Taruna Ikrar during ‘The 16th Annual Meeting of the World Health Organization – International Regulatory Cooperation for Herbal Medicines’ in Jakarta.