The Industrialization of Medicinal Plants in Indonesia

Afr. J. Food Agric. Nutr. Dev. 2023; 23(5):23285-23304 https://doi.org/10.18697/ajfand.120.
22410
THE INDUSTRIALIZATION OF MEDICINAL PLANTS IN INDONESIA
Siregar RS1*, Vajri IY2, Lubis RF3,

Mujahiddin M4, Siregar AF1 and K Rangkuti1
Rahmad Syukur Siregar
*Corresponding author email: [email protected]
1Facultyof Agricultural, Universitas Muhammadiyah Sumatera Utara, Medan,

North Sumatera, Indonesia
2Facultyof Agricultural, Universitas Medan Area, Medan, North Sumatera,
Indonesia
3Politeknik ATI Padang, Padang, West Sumatera, Indonesia
4Faculty
of Social Science and Political Science, Universitas Muhammadiyah
Sumatera Utara, Medan, North Sumatera, Indonesia
https://doi.org/10.18697/ajfand.120.22410 23285
ABSTRACT
This article reviews the use of medicinal plants in Indonesia, the development of
the medicinal plant industry, and its role in the process of industrializing medicinal
plants. The review was carried out using the Preferred Reporting Items for
Systematic Review and Meta-Analysis Protocols (PRISMA-P) method by including
the criteria for original articles and reports. Searches were done on Google
Scholar, Proquest, Pubmed, Science Direct, and Springer websites. The key words
employed for the search included economic development, industrialization, leading
sectors, medicinal plants, and modernization. The inclusion and exclusion criteria
was based on duplication, redundancy, method and quality of the article. In the
search results of the selected article database, 71 out of 300 articles and reports
were included in the criteria. According to the findings of this systematic review, the
industrialization of medicinal plants represents an opportunity to alter regional and
national economic structures. Industrialization of medicinal plants is a process of
modernizing medicinal plant commodities which aims to increase the added value
of all economic sectors with the manufacturing sector which are interrelated. The
industrialization of medicinal plants is marked by the development and
improvement of superior medicinal plant commodities as the leading sector of the
regional and national economy. Industrialization of superior medicinal plant
commodities can change the economic structure by increasing the contribution of
the industrial sector to consumer demand, increasing Gross Domestic Product
(GDP), increasing export value and availability of employment opportunities as well
as increasing long-term economic development and increasing income per capita,
to ensure equal distribution of welfare for farmers and the community.
Industrialization of medicinal plants can increase the added value of medicinal
plant commodities, increase consumer demand, increase the value of GDP,
increase the value of exports and employment, increase the potential for domestic
and foreign demand, encourage the development of the domestic and foreign
industrial sectors, expand employment opportunities, reduce dependence on
imports, and increase the country’s foreign exchange. Economic development
oriented toward the medicinal plant industry is the right industrialization strategy for
Indonesia.
Key words: Economic Development, Industrialization, Leading Sectors, Medicinal

Plants, Modernization
INTRODUCTION
The production of pharmaceuticals has undergone advancements over the past

two centuries. This ranges from raw herbal and botanical preparations to the
development of complex manufacturing of modern medicinal products in dosage
forms [1]. Manufacturing procedures for production preparation begin with small-
scale manufacturing processes using basic tools and progress to large-scale
production as part of the pharmaceutical industry, which has a high economic
value. These processes go hand-in-hand with the need for and development of
drug preparations [2]. The process of developing and improving the quality of the
use of herbal ingredients as part of the pharmacology industry has occurred in
various parts of the world. China is the largest country that implements the practice
of Ayurveda medicine. It was reported that China has developed distribution and
planning patterns in the traditional medicinal plant industry, strengthened the
development of medicinal plants in various regions, and built a center for
processing medicinal plant materials. It has established high-quality medicinal plant
nurseries, and integrated treatment methods of traditional medicine with western
medicine in medical health science. Furthermore, China has developed
chromatography technology for quality control of metabolites of medicinal plant
materials [3]. It was also reported that Malaysia, through the Malaysian Herbal
Monographs (MHM) committee, is trying to develop herbal monographs by
increasing the herbal market [4]. The European Union was also reported to have
increased regulations on the use of standardized herbal medicinal production
licenses within a specific regulatory framework for herbal products [7]. Also,
progress in the herbal products industry in South Africa has been made by
adopting various technological approaches [5]. Even in the United States, industry
4.0 has begun to be developed for pharmaceutical manufacturing in preparation for
future production sites [1].
Indonesia is a country that utilizes medicinal plants as ingredients and its use has
increased in recent years. An increase in the use of traditional household health
services was reported from 2013–2018, from 30.1%-44.2% [6]. This increase in
demand for traditional medicines is in line with the growth of industries that provide
added value to the value of medicinal plant commodities in Indonesia. These
include the Pharmaceutical Industry (PI), the Traditional Medicine Industry (TMI),
and the Traditional Medicine Small Business (TMSB). These industries have
started to spread in all provinces in Indonesia. In the development of the industrial
revolution, the production sector and the manufacturing industry (pharmaceutical
manufacturing industry, technology development manufacturing industry,
innovation, production specialization, and trade between countries) played a very
important role in increasing production output and improving the national economy
[7]. Based on the report of the Indonesian Central Statistics Agency (CSA) [8], the
increase in the national economy from the traditional medicine industry sector and
the growth of the manufacturing industry (pharmaceuticals, pharmacology, and
traditional medicine) were able to increase the growth in the value of the national
gross domestic product (GDP) and economic growth by 7.85% and 3%,
respectively. The traditional medicine industry also experienced an increase in
growth going from 4.46% in 2018 to 9.03% in 2019 and again increasing to 9.39%
(YoY) in 2020. The growth of this industrial group is the highest among industries
[9].
The growth of the traditional medicine industry in Indonesia is also accompanied by

the growth of the pharmaceutical manufacturing industry. In the 2015–2019 period,
the number of pharmaceutical industries increased from 198 to 230 industries. As
for the primary sector, there was an increase from 8 to 14 industries in the same
year and this industry was dominated by domestic private companies [8]. The trend
of the total market share of the pharmaceutical sector in Indonesia is also reported
to increase from Rp 65.9 trillion (US$ 43.99 billion) to Rp 88.36 trillion (US$
58.98.billion) in the period 2016-2019 [9]. This shows that there has been an
increase in the demand for and consumption of medicines. This was due to the
increasing awareness of the Indonesian people about the importance of health and
the need for medicines [10].
Although the agricultural industry has been able to increase the value of GDP and
economic growth, this has not been in line with efforts to distribute public welfare.
The Ministry of National Development Planning of Indonesia reports that the level
of welfare of farmers in the horticulture sub-sector is not evenly distributed [8]. This
can be seen from the regional farmers' exchange rates (FER) in some areas,
which are still below one hundred (<100). In addition, the development of the
medicinal plant industry in Indonesia also tends to be slower than in other countries
[6]. Indonesia is reportedly still having problems in supplying quality raw materials
to be able to compete in the international domestic market. Also, Indonesia was
reported to be facing challenges in overcoming weaknesses in infrastructure,
operations, and manufacturing regulations [8]. Industrialization must be able to
bring higher output potential, increase manufacturing safety, improve quality value,
use technological innovation, provide additional flexibility, and create economic
value for the country [9]. However, with the growth and development of medicinal
plants and the pharmaceutical industry, it is expected to be able to support efforts
to distribute welfare by increasing the value of regional FER. This article was
aimed at examining the use of medicinal plants in Indonesia, including industrial
development and its role in the process of industrializing medicinal plants.
MATERIALS AND METHODS
Preferred Reporting Items for Systematic Review and Meta-Analysis Protocols

(PRISMA-P) was the method used in the review. The review was carried out by
first identifying articles in various sources of scientific reports: Pubmed, Scopus,
Science Direct, and Elsevier, using the keywords "medicinal plants" combined with
"industrialization, leading sectors, modernization, and economic development." The
time period was set at the identification stage, which was 2013-2021. The second
step was article selection. The selection was made by comparing the relevance of
the title of the article with the sub-topic of the research discussion. The third step
was validation. This was achieved by reviewing the depth and quality of the content
of the article and its relevance to the sub-topic of the research discussion. Of the
300 articles and reports that were selected, 71 articles and reports that met the
criteria were selected. The fourth step is the article review (Figure 1).
Identification of studies via databases and registers
Figure 1: The author’s steps in selecting supporting references for compiling

an article review
RESULTS AND DISCUSSION
Medicinal plants
According to the World Health Organization (WHO), medicinal plants are any plant
that, in one or more of its organs, contains substances that can be used for
therapeutic purposes or are precursors for the synthesis of useful drugs [11].
Medicinal plants are plants that include: (a) plants or plant parts used as medicine
in galenic preparations (including decoction and infusion), (b) plants used for the
extraction of pure substances either for direct medicinal use or for the semi-
synthesis of compound drugs, (c) food plants, spices, and fragrances used as
medicine, (d) microscopic plants used for the isolation of drugs, especially
antibiotics, and (e) plant fibers used for the preparation of surgical materials [12].
According to the Ministry of Health of Indonesia No. 149 of 1978, medicinal plants
are (a) plants or parts of plants used as ingredients for traditional medicine or
herbal medicine, (b) plants or plant parts used as starting ingredients for medicinal
raw materials and (c) plants or plant parts extracted and the plant extracts used as
medicine [13].
The Indonesia Ministry of Health regulates the utilization of medicinal plants by

urging the public to use medicinal plants as traditional medicines to maintain health
and prevent diseases [14]. The government also established a National Health
System (NHS) through the Decree of the Minister of Health of the Republic of
Indonesia No. 374/Menkes/SK/V/2009, which regulates the development and
improvement of medicinal plants as traditional medicines. This was intended to
obtain traditional medicines that are of high quality, safe, have tangible properties
that are scientifically tested, and are widely used, both for self-medication by the
community as well as in formal health services [15]. The decree of the Minister of
Agriculture of Indonesia No. 141/Kpts/HK.150/M/2/2019 established 65 types of
medicinal plant commodities, including 14 types of rhizome plants and 51 types of
non-rhizome plants. There are currently only 15 medicinal plants recorded in the
CSA Horticultural Statistics. These include Zingiber officinale, Acorus calamus,
Alpinia galanga, Ammomum cardamomum, Kaempferia galanga, Morinda citrifolia,
Curcuma longa, Phaleria macrocarpa, Zingiber zerumbet, Strobilcumathes crispis,
paniculata, Curcuma aeruginosa, Aloe vera, and Boesenbergia rotunda [16]. Of
these medicinal plants, the rhizomes that are mostly produced in Indonesia are
Zingiber officinale, Alpinia galanga, Kaempferia galanga, and Curcuma longa.
Zingiber officinale and Curcuma species have the most widespread use in the
traditional and herbal medicine industries [17].
Medicinal plants have functions and efficacy as immunomodulators, anti-

inflammatory, and antiviral agents. They have been used for the healing and
prevention of various diseases as well as contain active substances that can treat
certain types of diseases. Also, they contain a resultant/synergistic effect of various
substances that have a healing effect [8]. The use of medicinal plants is generally
intended for treatment and health [29] because medicinal plants have a lot of
potential to be used as raw materials for modern herbal-based medicines [18].
The National Medicine Plants Board predicts that the opportunity for world
demand/ consumption of medicinal plants will continue to increase [19]. The
investment growth factor and the world's medicinal plant user industry, as
evidenced by the increased distribution of pharmaceutical, cosmetic, processed
food and beverage products, and bio-pesticides, will drive up global demand for
medicinal plants. According to Siregar et al. [20], traditional medicine is becoming
more and more expensive and unaffordable. The trend of healthy lifestyles is
increasingly popular, causing people in developing countries to be more inclined to
switch to herbal medicine.
In addition to being used as the main medicinal ingredient, medicinal plants are
also widely consumed in the form of supplements [33]. The supplement industry on
the global market is expected to continue to grow significantly. According to
Nutraceuticals World, transactions in the supplements and remedies market
reached USD 107 billion in 2017, with Europe having the highest demand [21].
Several factors contribute to the increase in demand for supplements, including the
need for supplements as functional foods, public trust in consuming herbal
medicines as a preventive measure, and the release of current good manufacturing
practices (CGMP) standards for supplement products. Apart from being used as
medicinal ingredients and supplements, medicinal plants are also used in the food
industry. These include complementary ingredients in cooking and as the main
flavour in several food products, such as bread, cakes, biscuits, and alcoholic
beverages [22].
According to reports, medicinal plants have been utilized all over the world,
specifically in developed and developing nations. Up to this point, about 80% of the
population in developing countries has used medicines made from medicinal plants
for their health needs [23]. Ullah et al. [24] reported that Saudi Arabia utilizes 96
species of medicinal plants from 47 families for pharmacological needs. China and
India trade 7,000 species and 700,000 tonnes of medicinal plants annually, and
Morocco is reported to export 58.7 tonnes of medicinal plants annually. In addition,
Sofowory et al. [12] claimed that the annual global commerce in herbal medicines
exceeds USD100 billion, with trade in medicinal plants accounting for around
USD2-5 billion in India and China. Over USD1 billion was estimated in Germany. It
was also reported that in the last 5 years, sales of medicinal plants have doubled in
China, tripled in India, and grown by 25% in continental Europe [25]. Brazil,
through its regulations, is also reported to have developed phytotherapy through
two important policies, namely the National Policy on Medicinal Plants and Herbal
Medicines and the National Policy on Integrative and Complementary Practices
[26].
Alternative medicine such as Traditional Chinese Medicine (TCM), Indian

Ayurveda, and Unani Arabic medicines are starting to be widely used in developed
countries, and their credibility is starting to increase in various countries around the
world. The WHO estimates that the demand for medicinal plants will increase to
USD 5 trillion by 2050 [27]. Indonesia, as a developing country that has the largest
diversity of medicinal plant species in the world, must be able to improve the
quality of medicinal plant commodities and products to be able to meet both local
and foreign demands [15]. Improving the quality of medicinal plants can be done by
increasing the added value of medicinal plant commodities. The increase in added
value in medicinal plant commodities has the potential to support increased
welfare, especially for medicinal plant farmers [28].
Astutik et al. [29] reported that there are several obstacles in the production system
of medicinal plants in Indonesia. These obstacles are reported to have occurred
due to several dynamics, including a shift in the way of providing commodities, and
the potential of medicinal plants as ingredients for traditional and modern medicine.
Furthermore, support for livelihoods, multi-scale institutional knowledge (formal and
informal) that is still fragmented, and a lack of studies on strategies to
commercialize medicinal plants, boom-bust cycles, and law enforcement have also
been cited. In addition, Salim and Munadi [8] opined that Indonesia has low seed
availability and quality. Sources of natural medicinal ingredients in Indonesia are
mostly the result of the direct exploitation of wild plants, forests, and yards that
have not been cultivated in a planned and integrated manner. Due to farmers' and
collectors' inability and lack of knowledge in properly processing and managing
medicinal plants, the quality of Indonesian medicinal plants is also considered low.
To balance the potential for regional and international needs, it is necessary to
increase the added value of medicinal plant commodities. Changes in the
economic system and structure of medicinal plant commodities are required to
transition from an agricultural to an industrial basis [29].
Medicinal Plant Industry

According to Law No. 5/1984, the medicinal plant industry is an economic activity
that processes raw materials, semi-finished goods, and/or finished goods into
goods with a higher value for their use [7]. The industry is an activity that converts
basic goods mechanically, chemically, or conventionally into semi-finished goods
or finished goods [8]. The agricultural industry (agro-industry) is an industry that
uses agricultural products as its main raw material or an industry that produces a
product that is used as a means or input in agriculture. This includes industries that
produce agricultural equipment and machinery, agricultural input industries, and
service industries in the agricultural sector, and the agricultural product processing
industry [30]. One of them is the raw material for medicinal plants or the medicinal
plant industry.
In the agro-industrial sector, especially the medicinal plant industry, farmers'
prosperity, and commodity development can be realized through industrial
development, both in the primary sector (providers of raw materials) and the
secondary sector (manufacturing industry) [7]. The Central Bureau of Statistics of
the Republic of Indonesia reported that in the last five years, the manufacturing
and agricultural sectors were the sectors that had the largest share of GDP with a
fluctuating value (Table 1) [31]. The relationship between the agricultural and
industrial sectors is indicated by the number of industries operating in the agro-
industrial sub-sector. Based on CSA data [31], it is known that in 2020, the non-oil
and gas industry had the largest contribution to GDP, which was 52.94%. From this
value, the primary and secondary sectors were able to absorb up to 29.76% of
workers (Table 2).
Based on the contribution of the non-oil and gas industry, 7.28% was reported to
be contributed by the chemical, pharmaceutical and traditional medicine industries.
The three industries are industries that rely on the agricultural sector, especially
medicinal plants, as their raw materials. It was also reported that, from the
contributions of the agricultural and manufacturing sectors, 0.10% of the labour
absorption was by the medicinal plant industry. These data indicate that the
agricultural sector and the industrial sector, especially medicinal plants, have a
major role in Indonesia's economic development [31].
The medicinal plant industry is a sector that has the potential to generate added
value, especially with the shift in the structure of the economy from agriculture-
based to industrial-based [8]. The role of the medicinal plant industry and
agriculture-based development can encourage economic growth and improve the
welfare of the community (especially horticultural farmers) in the form of equitable
distribution of community income and encourage development welfare [7]. The
added value of a commodity is obtained from the variety of medicinal plant
products produced, the availability and use of modern technology, and capital to
generate maximum profit. The progress of the medicinal plant industry sector is
one of the triggers for economic stability to spur regional economic growth, create
jobs, and support the people's economy [32].
The development of the medicinal plant industry can be seen in the use and
provision of commodities with added value. In Indonesia, the use of medicinal
plants is not only carried out by individuals but also by the PI, the TMI, and the
STMB [7]. Although the existence of the medicinal plant industry in Indonesia is
reported to be uneven, it can be seen that the island of Java is the island with the
largest number of medicinal plant industries in Indonesia (Table 1).
Based on the types of products that can be produced, the medicinal plant industry
consists of 5 types, namely TMI, Natural Ingredients Extract Industry (NIEI), STMB,
Traditional Medicine Micro Business (TMMB), and Herbal Medicine Business [8].
The traditional medicine industry is capable of producing all types of traditional
medicine dosage forms. There are 227 PIs, 135 TMIs, and 1,710 STMBs and
TMMBs that have been established and are operating in Indonesia. All of them are
managed by the private sector [7]. The Food and Drug Supervisory Agency [FDSA]
of Indonesia stipulated that all products of the traditional medicine industry
circulating in Indonesia are reported to have had a distribution permit/registration
with the FDSA [33]. More than 10,000 medicinal plant products (herbs) are
registered with the FDSA, including 32 standard herbal medicinal products and 5
phytopharmaceutical products.
To support the development of the medicinal plant industry, the government has
issued Policy No. 31/MENKES/SK/III/2007 concerning the use of medicinal plants
as traditional medicines. The policy is contained in the National Traditional
Medicine Policy (KOSTRANAS) [34]. However, this policy has not been
implemented in a way that promotes the growth of medicinal plants. Traditional
medicine policies have not been implemented by conceptualized programs and
clear budget allocations, both for the health sector and other sectors, according to
Siahaan and Aryastami [35]. They also claimed that there has been a lack of clear
and integrated coordination between related sectors regarding programs for the
development of medicinal plants.
Salim and Munadi [8], also reported that Indonesia does not yet have a maximum
primary sector. Additionally, the market has not been adequately absorbed,
technology utilization has not been maximized, and a lack of guidance and training
for farmers. There has been a lack of market absorption, a lack of scientific
research in product and market development efforts, and little funding for
agribusiness development [8]. The development of the medicinal plant industry
sector in economic development is reported to have not been able to accelerate
economic growth and people's incomes, especially farmers of medicinal plant
commodities [7]. The industrial sector is the leading sector in economic
development, so there is a need for industrialization in the use of medicinal plants.
Medicinal Plant Industrialization

The medicinal plant industry is an important component of the economy. The
industry provides an opportunity for the economy to develop rapidly, thereby
bringing about changes in the structure of the national economy. The expansion of
numerous industries in various sectors supports Indonesia's development efforts
[35]. According to Radianto [7], a nation can be said to have undergone
industrialization when it reaches the point where the industrial sector dominates the
economy. Industrialization is a structural transformation in a country. Therefore, the
industrialization process can be defined as a process of changing the economic
structure where there is an increase in the contribution of the industrial sector to
consumer demand, GDP, exports, and employment opportunities [36].
The agricultural sector is reported to have a close relationship with the industrial
sector. Agro-industry-oriented economic development is the right industrialization
strategy for Indonesia. Most of Indonesia's resources are in the agricultural sector,
and the majority of its people still rely heavily on it [32]. Radianto [7] stated that the
agricultural-based processing industry is a sector that will encourage high national
economic growth, especially small and medium-scale agro-industry. The
agroindustry is a leading sector for Indonesia's economic development. It is
reported that each country has a different process of industrialization. The
industrialization process is a logical stage in the process of changing the economic
structure, which is marked by an increase in the contribution of the manufacturing
industry sector, employment opportunities, as well as total production and exports
[7].
The ability to process raw materials into finished products is an impediment to the
development of Indonesia's agro-industry. It is reported that some medicinal plant
commodities exported by Indonesia are raw materials with a processing retention
index of 71-75% [36]. Exports of Indonesian medicinal plant materials are reported
to have not been able to penetrate the regulations on the quality of export
commodities in destination countries [8]. In Indonesia, processed agricultural
products account for 25-29% of total exports. This condition will reduce the added
value obtained from the export of these products, especially in the industrialization
of medicinal plants nationally and internationally. If the primary and secondary
sectors have helped to boost the GDP, create more jobs, and distribute income
fairly in a region, that area is said to be industrialized. By planning and developing
a suitable environment for production, processing, and marketing, the
industrialization of medicinal plants can develop in the long term [37].
Medicinal plants make a significant contribution to the study of industrialization in

modern drug discovery. Research and the pharmaceutical industry are reported to
prioritize research on the discovery of new chemical components of medicinal
plants, production knowledge, and product trademarks [10]. However, in the
development of the industrialization of medicinal plants, research, development,
and capital are needed to increase scientific studies and knowledge of medicinal
plant pharmacology. The role of research institutions in assessing the bioactive
content of medicinal plants is needed to support information that can be used in
pharmacology [6]. Multidisciplinary studies on the potential and optimization of
existing resources are needed to improve regional/global networks, human
resources, infrastructure, exchange of expertise, capacity building, and
government policies [37].
Industrialization must be a consideration in implementing its development strategy.

These considerations include sufficient sources of raw materials and production
factors, the adequate potential for domestic and foreign demand, encouraging the
development of domestic and foreign industrial sectors. Expanding opportunities,
reducing dependence on imports, reducing trade balance deficits, and saving
foreign exchange reserves are also among the considerations [36]. Several
countries have been reported to have succeeded in industrializing, particularly
those related to medicinal plant products in Asia, including China, Korea, India,
Indonesia, Malaysia, Myanmar, Sri Lanka, Thailand, and Vietnam [7].
Industrialization of medicinal plants is also reported to have occurred globally.
Traditional Chinese Medicine (TCM) has long built a strong foundation in Europe
by making great strides in law, education, research, international exchange, and
technology. There has been extensive development space in Europe and countries
in Asia and the Southeast [38]. To keep pace with the growing use of medicinal
plants, research and scientific studies in a broader sense are needed in industrial
studies to strengthen primary sector industries [39] and supply chains for financial
independence [40]. Comprehensive information on the production, use,
commercialization, and management of medicinal plants is needed to fulfill the
study of the industrialization of medicinal plants in the future [29].
CONCLUSION
The industrialization of medicinal plants is part of the process of transforming the

structure of the economy from agriculture-based to industrial-based.
Industrialization of medicinal plants in Indonesia is a process of increasing the
contribution of the industrial sector, both the primary sector (providers of raw
materials) and the secondary sector (pharmaceutical, pharmacological, and
traditional medicine manufacturing industries). Optimizing the medicinal plant
industry as a leading sector in industrialization will have a positive impact on
increasing the added value of medicinal plant commodities, increasing consumer
demand, increasing the value of GDP, and increasing the value of exports and
employment. Industrialization of medicinal plants can benefit regional and national
economies, particularly small and medium-scale agro-industry, by encouraging
economic growth and improving welfare, particularly for farmers and communities,
through income distribution and development welfare. Agro-industry-oriented
economic development is the right industrialization strategy for Indonesia.
AUTHORS’ CONTRIBUTIONS
All authors contributed to the sourcing of articles and the writing of the manuscript.
CONFLICT OF INTEREST
All authors declare that there is no conflict of interest in the publication of this
article.
Table 1: Indonesia's Share of GDP from the Manufacturing and Agricultural
Sectors for Five Years
GDP Share Value (%)
Sectors Playing a
Second Quarter
Role in GDP pangsa 2017 2018 2019 2020
of 2021
Manufacturing sector 13.6 12.81 12.71 13.70 19.29
Agriculture Sector 20.16 19.86 19.71 19.88 14.27
(Pharmaceutical and
Medicinal Plants
Source: CSA [31]
Table 2: Contribution of the Medicinal Plant Industry to GDP and Employment

in 2020
National GDP (%) National labour absorption (%)
National
Non-Oil Agriculture Manufacturing
Contribution Oil and Gas
and Gas Sector sector
In 2020 47.06 52.94 29.76 13.61
Source: BPS, 2021 [17]
Table 3: The Number of Growing Medicinal Plant Industries in Indonesia
Years Island PI TMI TMSB
2016 Sumatera 6 1 45
Jawa 204 109 721
Kalimantan 0 1 20
Sulawesi 0 1 42
Papua 0 0 0
2017 Sumatera 6 2 316
Jawa 220 129 2645
Kalimantan 0 2 127
Sulawesi 0 2 97
Papua 0 0 0
2018 Sumatera 6 2 128
Jawa 221 129 1760
Kalimantan 0 2 16
Sulawesi 0 2 72
Papua 0 0 0
2019 Sumatera 6 2 147
Jawa 219 131 1724
Kalimantan 0 2 16
Sulawesi 0 2 68
Papua 0 0 0
2020 Sumatera 6 2 143
Jawa 224 138 1720
Kalimantan 0 2 16
Sulawesi 0 2 70
Papua 0 0 0
PI: Pharmaceutical Industry; TMI: Traditional Medicine Industry; TMSB: Traditional Medicine Small Business;
Source: Indonesia Health Profile [7]
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The Industrialization of Medicinal Plants in Indonesia

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Afr. J. Food Agric. Nutr. Dev. 2023; 23(5):23285-23304 https://doi.org/10.18697/ajfand.120.

THE INDUSTRIALIZATION OF MEDICINAL PLANTS IN INDONESIA

Siregar RS1*, Vajri IY2, Lubis RF3,

Rahmad Syukur Siregar

*Corresponding author email: [email protected]

1Facultyof Agricultural, Universitas Muhammadiyah Sumatera Utara, Medan,

Key words: Economic Development, Industrialization, Leading Sectors, Medicinal

The production of pharmaceuticals has undergone advancements over the past

The growth of the traditional medicine industry in Indonesia is also accompanied by

MATERIALS AND METHODS

Preferred Reporting Items for Systematic Review and Meta-Analysis Protocols

Figure 1: The author’s steps in selecting supporting references for compiling

RESULTS AND DISCUSSION

The Indonesia Ministry of Health regulates the utilization of medicinal plants by

Medicinal plants have functions and efficacy as immunomodulators, anti-

Alternative medicine such as Traditional Chinese Medicine (TCM), Indian

Medicinal Plant Industry

Medicinal Plant Industrialization

Medicinal plants make a significant contribution to the study of industrialization in

Industrialization must be a consideration in implementing its development strategy.

The industrialization of medicinal plants is part of the process of transforming the

Table 2: Contribution of the Medicinal Plant Industry to GDP and Employment

2. Lopes CMC, Lazzarini JR, Soares J and EC Baracat Phytotherapy:

3. Shen MR, He Y and SM Shi Development of Chromatographic

5. Masondo NA and NP Makunga Advancement of Analytical Techniques in

6. Rukmini R and L Kristen An Overview of the Utilization of Traditional

7. Radianto SH Agriculture and Industry; Future Prospects, Strategies and

8. Central Statistics Agency of Indonesian (CSA). Indonesian GDP

9. Ministry of Industry of the Republic of Indonesia. Book of Industrial

10. Indonesian Ministry of Industry. National Industrial Development Master

12. Sofowora A, Ogunbodede E and A Onayade The Role and Place of

13. Ministry of Health of the Republic of Indonesia. Traditional Medicine

14. Ministry of Health of the Republic of Indonesia. Utilization of Traditional

15. Ministry of Health of the Republic of Indonesia. Decree of the Minister of

17. Sido Muncul PT Delivering the Vision-2015 Annual Report. 2015.

18. Sholikhah EN Indonesian Medicinal Plants as Sources of Secondary

19 National Medicinal Plants Board (NMPB). Profile National Medicinal Plants

21. Nutraceuticals World. Global Herbal Supplement Market to Reach $107

23. Yang Y Health Technology Assessment in Traditional Chinese Medicine in

25. Zhou K and JJ Raffoul Potential Anticancer Properties of Grape

26. Leite PM, Camargos LM and RO Castilho Recent Progress in

27. Ma D, Wang S, Shi Y, Ni S, Tang M and A Xu The Development of

29. Astutik S, Pretzsch J and JN Kimengsi Asian Medicinal Plants’ Production

30. Sangadah HA, Machfud and E Anggraeni An Integrated Conceptual

31. Central Statistics Agency of Indonesia (CSA). Indonesian Economy

34. Regulation of the Minister of Health [Kepmenkes]. National Traditional

35. Siahaan S and NK Aryastami Study of Policy for the Development of

36. Nasikh, Kamaludin M, Narmaditya BS, Wibowo A and I Febrianto

39. Chugh NA, Bali S and A Koul Integration of Botanicals in Contemporary

40 Garai A and B Sarkar Economically Independent Reverse Logistics of the

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