Opportunities and Challenges for Developing Halal Pharmaceuticals Industry in Indonesia
Main Article Content
Abstract
This study explores the opportunities and challenges of developing halal pharmaceutical industry in Indonesia following the issuance of the Halal Assurance Product Law (UU JPH) and Indonesia’s Masterplan of Islamic Economics and Finance (MEKSI) 2019-2024. It employs a qualitative research approach with the content analysis method. It collected primary data through interviews and Focus Group Discussion with various stakeholders of the Indonesia’s pharmaceutical industry, including regulators, industry players, Muslim scholars, and academics. The study identified five opportunities for the Indonesian halal pharmaceuticals industry, including the enormously growing global and local market, increasing awareness for halal products, more flexible timeline to adjust with the Indonesian Halal Products Assurance Law, involvement of cross-institutional regulators in maintaining the halal regulation, and abundance of pharmaceutical resources. Meanwhile, the challenges faced include a substantial proportion of imported raw materials for producing halal pharmaceutical products, a lack of technical guidance regarding the halal certification regulation, and a lack of qualified human resources. Two strategies are suggested to overcome the challenges: promoting domestically produced raw materials and encouraging halal certification among the global raw materials supplier. The findings and analyses also highlight the urgency for the government and industry to implement appropriate strategies in implementing the halal-related Law effectively and capture the opportunities.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Ahmed, A., Lee, K. S., Bukhsh, A., Al-Worafi, Y. M., Sarker, M. M. R., Ming, L. C., & Khan, T. M. (2018). Outbreak of vaccine-preventable diseases in Muslim majority countries. Journal of infection and public health, 11(2), 153–155.
Annabi, C. A., & Wada, S. M. (2016). Halal Pharmaceutical Industry in Nigeria: A bitter pill to swallow. Journal of Emerging Economies and Islamic Research, 4(2), 67–78.
Aziz, N. A., Ibrahim, I., & Raof, N. A. (2014). The need for legal intervention within the halal pharmaceutical industry. Procedia-Social and Behavioral Sciences, 121, 124-132.
Badan Perencanaan Pembangunan Nasional (Bappenas). (2018). Masterplan Ekonomi Syariah Indonesia 2019-2024. Jakarta: BAPPENAS.
Boyce, C., & Neale, P. (2006). Conducting in-depth interviews: A guide for designing and conducting in-depth interviews for evaluation input.
Bryman, A. (2016). Social research methods. Oxford University Press.
DinarStandard. (2021). State of Global Islamic Economy Report (SGIE) 2021/2022. Dubai International Financial Centre. https://www.salaamgateway.com/
Euromonitor. (2020). Consumer Health in Indonesia.
Folch-Lyon, E., & Trost, J. F. (1981). Conducting focus group sessions. Studies in family planning, 443-449.
Gardnier, M. O., & Gardnier, P. (2017). Indonesia’s Demographic Dividend or Window of Opportunity? Masyarakat Indonesia, 39(2), 481-504.
Harapan, H., Mudatsir, M., Yufika, A., Nawawi, Y., Wahyuniati, N., Anwar, S., ... & Imrie, A. (2019). Community acceptance and willingness-to-pay for a hypothetical Zika vaccine: A cross-sectional study in Indonesia. Vaccine, 37(11), 1398-1406.
Indonesia, S. (2013). Indonesia population projection 2010-2035. Statistics Indonesia.
Indonesia Halal Lifestyle Center, DinarStandard, & Bank Indonesia. (2021). Indonesia Halal Markets Report (IHMR) 2021/2022. https://isef.co.id/
Johnson, B., & Christensen, L. (2012). Quantitative, qualitative, and mixed approaches. Educational Research, University of South Alabama: SAGE.
Kasri, R.A., Ahsan, A., Widiatmoko, D., and Hati, S.R.H. (2021). Intention to consume halal pharmaceutical products: evidence from Indonesia. Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIMA-06-2021-0192
Kementerian Perindustrian (Ministry of Industry). (2021). Sektor Manufaktur Tumbuh Agresif di Tengah Tekanan Pandemi. https://kemenperin.go.id/artikel/22681/Sektor-Manufaktur-Tumbuh-Agresif-di-Tengah-Tekanan-Pandemi-
Lembaga Ilmu Pengetahuan Indonesia. (2020). LIPI Bersama Akademisi dan Industri Kerja Sama Wujudkan Kemandirian Obat Indonesia. http://lipi.go.id/siaranpress/lipi-bersama-akademisi-dan-industri-kerja-sama-wujudkan-kemandirian-obat-indonesia/21957
Madjid, S. S., & Hasan, H. A. (2022). Analisis Peluang, Tantangan Dan Strategi Industri Halal Di Indonesia (Pada Masa Pandemic Covid-19). PILAR: Jurnal Kajian Islam Kontemporer, 13(1), 17-32.
Mohezar, S., Zailani, S., & Tieman, M. (2016). Tapping into the halal pharmaceutical market: issues and challenges. Contemporary Issues and Development in the Global Halal Industry, 531-541.
Norazmi, M. N., & Lim, L. S. (2015). Halal pharmaceutical industry: opportunities and challenges. Trends in Pharmacological Sciences, 36(8), 496–497
Oberman, R., Dobbs, R., Budiman, A., Thompson, F., & Rossé, M. (2012). The archipelago economy: Unleashing Indonesia's potential. McKinsey Global Institute.
Padmawati, R. S., Heywood, A., Sitaresmi, M. N., Atthobari, J., MacIntyre, C. R., Soenarto, Y., & Seale, H. (2019). Religious and community leaders’ acceptance of rotavirus vaccine introduction in Yogyakarta, Indonesia: a qualitative study. BMC Public Health, 19(1), 1–6.
Phatoni, A. (2021). Indonesia’s Halal Pharma Sector is Growing, but Reliance on Imports Hobbles Progress. Retrieved from: Salaamgateway.com
Pusat Ekonomi dan Bisnis Syariah (PEBS). (2022). Indonesia Sharia Economic Outlook (ISEO) 2022. https://pebs-febui.org/publikasi/materi/
Stonawski, M., Skirbekk, V., & Potančoková, M. (2015). The future of world religions: population growth projections, 2010-2015. Pew Research Cente
Thomson Reuters. (2017). State of The Global Islamic Economy Report 2016/17.
Undang-Undangan No. 33/2014 mengenai Jaminan Produk Halal, accessed from the website of Indonesian House of Representative.
Zehra, F., & Naqvi, A. A. (2017). The Global Halal Pharmaceutical Market: Strengths, Challenges, and Prospects. Archives of Pharmacy Practice, 8(3), 85-87.