The Rising Demand for Indonesian Herbal Remedies

Traditional medicine has been practiced in the world for centuries. Passed along from generations to generations, some of the herbal remedies have over the years been crystallized and led to a number of discoveries and large developments in the modern pharmacological industry. The use of herbal remedies has expanded globally, gaining more popularity and is readily being incorporated into modern day health care, not only in the developing world but also in the developed countries.

Although herbal remedies are popular all across Asia, with companies from China and Malaysia as the current market leaders, it is Indonesia that has the biggest and fastest-growing traditional medicine business in the region. According to a report by Euromonitor International, by 2017 the turnover is expected to reach $800 million per year, up 55% from about $500 million in 2012.

Regarded as a highly lucrative market, some of the biggest pharmaceutical companies have muscled their way into what was once a solely family-operated, small-scale industry. One of the early players is Sido Muncul, which used to be a small-scale company but has now risen up the ranks. Together with Deltomed Laboratories, they are Indonesia's two main leading contenders in the herbal medicine market. Sido Muncul sells over 200 million sachets of the cold medication Tolak Angin, currently its biggest marketable product.

With its abundant natural resources, Indonesia has no shortage of roots, herbs, spices, or fruits to be continuously examined and explored for new and improved herbal medicines. Of the 30,000 species of flowers and plants found in the many rain forests all across Indonesia, over a 1,000 have been recognized to have significant medicinal potential and many of those are regularly used to produce herbal medicines.

There has been a significant rise in the demand for Indonesian herbal remedies in the international markets as well. Huge markets like Australia, much of Europe, and America have all been successfully penetrated by companies from Indonesia. The government also provides strong support for the industry, implementing policies such as the 'Back to Nature, Use Indonesian Traditional Medicine' movements that safeguard the interests of the Indonesian herbal medicine developers and promote the products for health care services.

However, further development will require more concrete actions, such as establishment of Diploma programs in Traditional Medicine, to produce scientifically minded experts in the field, establishment of alternative health service centers, as well as standardization and better quality control in the production line. If done properly, these will help enable Indonesia's herbal medicinal industry to produce better products and benefit more people.

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