Bayer President Director: Now is our chance to double our market
19 October 2018 15:16 WIB
TEMPO.CO, Jakarta - Indonesia's demographic offers an interesting market for pharmaceutical and agricultural companies such as PT Bayer Indonesia. With a stable rate of economic growth, Bayer—who has been in the country for 40 years—is likely to keep expanding its market, especially after the launch of the National Health Insurance program.
To Tempo's Faiz Nashrillah, Bayer Indonesia president director Ashraf Al-Ouf spoke about the industry's outlook and his company's targets. The Jordanian man is confident Bayer will post a double-digit growth this year, just like in 2014. Excerpts:
How do you see Indonesia's pharmaceutical industry?
I see that healthcare spending in Indonesia is quite low, which is a potential—to us and other pharmaceutical industries—to increase growth, particularly now that the government is taking the right steps by launching the National Health Insurance (JKN) program.
Currently, there are 130 million people enrolled in the JKN, and the government is targeting to have all Indonesians registered by 2019. This is our chance to double our market, especially as there will be an increased elderly population in the next few years.
How does your company handle Indonesia's slowing economy?
There is an economic slowdown this year, but compared to other nation Indonesia is doing quite well. The GDP even increased to more five percent and industry players are still more confident.
How is Bayer Indonesia doing nowadays?
Our total sales value in Indonesia; pharmaceutical products, crop science and consumer care reached €240 million in 2013. That is a small number, with potentials to grow. The figure accounts for just 0.6 percent of Bayer's global sales value, which reaches €42 billion.
What are your targets for this year and how will you achieve them?
Last year we posted a double-digit growth, above the industry's nine percent. We intend to do the same this year. The industry grew a bit slow last year because companies were still adjusting to the JNK program.
Our main strategy is to enhance our participation in the JKN program.
Bayer has two factories in Indonesia now. Any plan to have more?
We have no plans to increase the number of our factories yet. What we will do is add more products. To do that, we have invested some €60 million for our Cimanggis plant. We will add another €8 million this year. As for the plant in Surabaya, we will add machineries to increase production capacity. (*)
