Pharmaceutical Industry Delay Price Rises


JAKARTA, KOMPAS – Indonesia Joint Pharmaceutical Company agreed not to raise the price of branded generic drugs in 2011. Pharmaceutical companies are already raising prices again asked to lower the price of drugs they sell in the market.


“The decline in prices made no later than 1 March,” said Anthony CH Sunarjo ,Chairman of the Pharmaceutical GP Friday (25 / 2) in Jakarta. This decision was taken considering the condition of GP Farmasi Indonesia’s purchasing power is increasingly difficult.


According to the findings of GP Farmasi, from about 200 pharmaceutical industry in Indonesia, only 15 industries that raise drug prices. The increase in the price of these drugs occurs in branded generic products that sell quickly.


Some time earlier, the Ministry of Health called for a national pharmaceutical companies not to raise the price of drugs given the purchasing power of the slump.


“Drugs are not the same as other commodities. Employers can not just think about the business aspect, but also its social aspect, “said Sri Indrawaty, Director General of Pharmaceutical and Medical Devices Ministry of Health, which contacted separately.


To reduce the high price of drugs, the pharmaceutical industry could reduce the other components, such as reduced profit margins and reduce the cost of ethical promotion of drugs (drugs obtained through prescription).


The increase in drug prices in the market to reach 10 percent when the Ministry of Finance to apply import duty raw materials by 5 percent.


According to Anthony, import duties of 5 percent of this burden on the pharmaceutical industry who bear the increase in other expenses, such as rising raw material prices are mostly imported, the basic electricity tariff, the regional minimum wage, and higher rates of inflation.


Ministry of Health effort to import duties of raw materials derived drugs. The Government is also to socialize the use of generic drugs that are subsidized by the government as bearing the cheap drugs that are guaranteed quality.