BUSINESS OPPORTUNITY ANALYSIS ON HALAL VACCINE IN THE INDONESIAN MARKET (CASE STUDY OF INAPHARM BIOPHARMACEUTICAL COMPANY IN JAKARTA)

• Main Author: Indrasaputra, Aditya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65410
• Institution: Institut Teknologi Bandung

Vaccine hesitancy is defined by the World Health Organization (WHO) as a behavior influenced by several factors, including issues of confidence (do not trust the vaccine or provider), complacency (do not perceive a need for a vaccine, do not value the vaccine), and convenience (access to gain vaccine). Vaccine-apprehensive people are a diverse group with various levels of uncertainty regarding specific vaccines or vaccination in general. This is regarded as a high-priority location for development. Muslim consumers are becoming increasingly aware of halal medications in addition to food products. They're starting to notice the negative consequences of product development, testing, and production, all of which may deviate from halal standards. As a result of this confusion, the general public is beginning to question the sources of their medicinal items. Conservative Muslims may refuse vaccinations due to worries that some vaccines were obtained from the contents of pigs or porcine, which Muslims are prohibited from eating. Vaccines are pharmaceutical products, and like any pharmaceutical products, they can be made with halal ingredients, which can be used instead of non-halal ingredients or animal products and derivatives for therapy. The application of halal certification for vaccinations is constrained by Shariah law and Fatwa. There is an increase in public awareness among Muslims with regard to vaccine antigens and excipients of animal origin. Today, a quarter of the inhabitants of the world are Muslims. This figure is expected to grow by 35% over the next two decades, leaping from 1.6 billion to 2.2 billion by 2030 (World Population Review, 2022). By 2021, the worldwide halal pharmaceutical industry will be worth USD 132 billion. Based on data from the Directorate General of Population and Civil Registration of the Ministry of Home Affairs, the total population of Indonesia is 272.23 million in June 2021. Of this number, 236.53 million people (86.88%) are Muslims. This signifies that Muslims make up the majority of Indonesia's population. To turn this hesitancy into an opportunity, INAPHARM Pharmaceutical plans to build a manufacturing plant for halal vaccines. In this research, the vaccines that will be produced by INAPHARM are ACYW135 Meningococcal Polysaccharide Vaccine, ACYW135 Meningococcal Conjugate Vaccine, 13 Valent Pneumococcal Polysaccharide Vaccine, and 23 Valent Pneumococcal Conjugate Vaccine. These vaccines are selected due to their close association with halal vaccines for the use case of Indonesian vaccine hesitancy. Meningococcal vaccines are obligatory for Muslim pilgrims to enter Saudi Arabia to perform religious worship there, in line with religious needs, halal vaccines will be the main focus in determining what vaccine brand they will use. The objective of this study is to assess the feasibility of the halal vaccine manufacturing plant project through financial methods emphasizing capital budgeting technique, internal study, and market analysis. The result of this study shows that the development of the INAPHARM halal vaccine manufacturing plant is financially feasible due to the net present value of (USD 81,141,154), internal rate of return of (31.43%), the payback period of 4 years and six months, and the profitability index of (5.06), which in other scenarios testing are all acceptable for this project.