Indonesian Political, Business & Finance News

Industries Under BPOM Supervision Record Revenue Up to Rp10 Trillion

| Source: CNBC Translated from Indonesian | Regulation
Industries Under BPOM Supervision Record Revenue Up to Rp10 Trillion
Image: CNBC

Jakarta — The head of the Indonesian Food and Drug Agency (BPOM), Taruna Ikrar, stated that industries under BPOM supervision contribute between 30% and 40% to gross domestic product (GDP), generating revenue between Rp6 trillion and Rp10 trillion annually.

“This is closely related to revenue and the industries that fall under the authority of BPOM,” he said.

Taruna explained that millions of industries operate within BPOM’s jurisdiction. Approximately 55,000 large-scale industries generate hundreds of trillions in revenue. Additionally, there are 1.7 million small, micro, and medium-sized enterprises.

“When you combine all the revenues together, the figure of Rp6 trillion to Rp10 trillion makes sense,” Taruna clarified.

Industries requiring BPOM licensing include producers of packaged food and beverages (medium to large-scale/high-risk), pharmaceuticals (including traditional medicines and herbal preparations), cosmetics, health supplements, and medical devices. These licences are necessary to ensure the safety and quality of products circulating in Indonesia.

The significant contribution of these industries has led the World Health Organization (WHO) to designate BPOM as a WHO Listed Authority (WLA) for medical product regulation, including vaccines.

This recognition places BPOM on par with leading regulatory authorities from developed nations, such as Australia’s Therapeutic Goods Administration (TGA).

“As of December last year, Indonesia joined this status. This means we are the first upper-middle-income developing country to receive WLA status; the rest are developed nations,” Taruna noted.

He emphasised that WLA status represents a significant achievement, as many countries have not attained it.

“The primary benefit is, of course, pride. It is about reputation. What does it mean? It signifies that Indonesia’s drug and food oversight already meets the highest standards,” Taruna concluded.

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