Ratification of the Health Bill to Support Biotechnology Startup Initiatives in Indonesia

The government together with the DPR RI have just passed the Draft Health Law (RUU) into a Health Law (UU) at the DPR RI plenary meeting which was held on Tuesday (11/7). One of the aspects discussed is the use of technology in the health industry, including utilization biotechnology.

The government agrees with the DPR on the need to accelerate the use of biomedical technology for health services, including precision medical services. The ratification of the Health Bill is one of the steps in transforming health to build a strong, independent and inclusive Indonesian health architecture.

Reporting from Dataword, Deputy Health Minister Dante Saksono Harbuwono had said that there were two health subsectors that were of interest this year, namely health and biomedical data. Meanwhile, regulations related to health technology are also regulated in Chapter X which consists of 10 articles, namely 334 – 344.

Further provisions regarding the implementation of health technology innovations are regulated in the sound of article 337 paragraph 3. One of them is the use of biomedical technology which includes technology (1) Genomics (2) Transcriptomic (3) Proteomics, and (4) Metabolomics related to organisms, tissues, cells, biomolecules, and other biomedical technologies.

Utilization of biomedical technology in question can be implemented starting from:

• Taking
• Long term storage
• Material management and utilization in the form of clinical specimens and biological materials, information content, and related data.

Meanwhile, article 339 paragraph 1 states that storage and management of material in the form of clinical specimens and biological material, information content, and data for the long term must be carried out by a biobank and/or biorepository that is

The implementation of biobanks and/or biorepositories must obtain a stipulation from the central government and be administered by health service facilities, educational institutions, and/or health research and development institutions, whether owned by the central government, regional government, or private sector.

In article 339 paragraph 4 it is emphasized that the implementation of biobanks and/or biorepositories must apply the following principles: (1) Biosafety and biosafety, (2) Confidentiality or privacy, (3) Accountability, (4) Benefit, (5) Public interest , (6) Respect for human rights, (7) Ethics, law, and medicolegal, and (8) Socio-cultural.

The government also requires biobank and/or biorepository operators to store specimens and data domestically. In addition, data and information must be integrated into the National Health Information System.

"The transfer and use of material in the form of clinical specimens and biological material, information content, and/or data outside the territory of Indonesia is carried out with due observance of the principle of preserving the wealth of Indonesia's biological and genetic resources," reads article 340 paragraph 1.

Biotechnology startups in Indonesia

Menurut Global Biotechnology Innovation Scorecard 2021, Indonesia ranks 52nd out of 54 countries in biotechnology development. Indonesia also still relies on imported medicinal raw materials, and the domestic biotechnology sector is still in its early stages.

Even though it is still premature, many initiatives related to the biotechnology sector have been launched in Indonesia. One of which is Etana, a biotechnology company from Indonesia that uses mRNA technology and based platforms viral peptides for vaccine production. The company's mission is to provide high quality, affordable and innovative bio-pharmaceutical products.

newest, Asa Ren which claims to be the first company in Indonesia to focus on managing DNA data. Today, the company provides consumers with the accessibility of direct DNA testing by offering more than 360 reports -- including health risks (predisposed risk), hereditary information (ancestry), and other reports for adults to children.

From the funding side, investors are starting to look at startups Biotech in Indonesia. While investment in this sector is still relatively new, East Ventures has shown its trust since 2018 through its portfolio in the sector genome Sequencing, namely Nalagenetics and Nusantics.

It didn't stop there, East Ventures also launched a white paperentitled "Genomics: Leapfrogging into the Indonesian healthcare future" in collaboration with the Ministry of Health of the Republic of Indonesia and Redseer Strategy Consultant. This report provides a comprehensive understanding of the role of genomics in improving the health system in Indonesia.

Besides that, Corporate Venture Capital (CVC) owned by Telkom, MDI Ventures and Bio Farma have also formed a managed fund "Bio Health Fund" of $ 20 million or around IDR 292 billion. This managed fund targets startup investments early and growth stages area-focused Biotech and health services in Indonesia.