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Indonesia Rule To Make Foreign Drug Firms Have Local Plant Under Fire

This article was originally published in PharmAsia News

Executive Summary

Indonesia's government is taking a look at a proposed regulation to require foreign drug makers to have a manufacturing plant before they can enter the nation's market. The review is in response to assertions by foreign diplomats who say the regulation could be a violation of World Trade Organization rules. The proposed regulation is one of several actions the Indonesian government has taken in response to the global financial crisis. The head of Indonesia FDA said the government would be flexible in implementing the rule and that it would be applied on a case-by-case basis and unlikely to be enforced 100 percent unless in tandem with increasing the capacity of the domestic industry. But diplomats said such discrimination also could violate WTO rules. (Click here for more
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