BUSINESS FEASIBILITY STUDY OF HERBAL RAW MATERIALS IN INDONESIA WITH MIXED MARKET RESEARCH METHOD

• Main Author: Ikhsan Azis, Vanji
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39815
• Institution: Institut Teknologi Bandung

The use of herbal medicines in Indonesia is expected to continue to grow with compound annual growth (CAGR) of 5% and is expected to reach Rp. 13.2 T in 2022. This causes the use of herbal raw materials to be widely used. Nevertheless, Indonesia still has a high dependence on imported raw materials. This condition has an impact on the growth potential of the herbal medicine market in Indonesia. In order to escape the dependence of imported raw materials, the pharmaceutical industry must begin to provide raw materials derived from natural materials and a feasibility study is needed to develop the business of herbal raw materials which is the purpose of this study. This research was conducted with a combination of market research methods by conducting an In-depth Interview with customers and regulators, investigation research, secondary data research, and business analysis during February-April 2019. Based on the volume analysis of use of herbal raw materials, there are Oleum Cocos and Zingiberis Rhizoma having the highest volume and with each value of CAGR are 4.5% and 18.7%. However, the market growth of Oleum Cocos tends to be small with a CAGR of 4.5% (5 years). There are customer expectations that have not been met in terms of capacity and availability shown in customer analysis. Based on research data from research investigators, ginger extract (Zingiberis Rhizoma), turmeric (Curcuma longa), and ginger are extracts with the highest demand by consumers. From the indepth interview, it is known that the Ministry of Health has determined the target of traditional medicine raw materials that must be developed until 2025 and BPOM has not made regulations regarding the difficulties of the industry in obtaining large amounts of simplicia and uniform quality. The company's financial and investment analysis shows a positive NPV, an IRR above the WACC, and a return on capital far faster than the economic age. It was concluded that the business of herbal raw materials was declared feasible to run with the priority of development in 35 pareto herbal raw materials and targets of traditional medicine raw materials by the Ministry of Health and suggested to increase production capacity for the company.