Indonesia lowers drug prices

Indonesia lowers drug prices (Photo: thesun.my)

Jakarta – Indonesian President Joko Widodo wants to reduce drug prices in his country to a level comparable to that of neighboring countries, the country's Food and Drug Administration (BPOM) said.

According to BPOM President Tarruna Ikrar, the politician has instructed the agency to adjust drug prices to at least match the prices of generic drugs or those in neighboring countries such as Malaysia, the Philippines or Singapore. He said the agency will work with the ministries of health and trade to resolve the issue.

The official said drug prices in Indonesia are up to 400 percent higher than abroad because pharmaceutical companies have to incur high advertising and marketing costs.

In addition, the high cost of raw materials (80 to 90% of the ingredients for finished products must be imported) is a major factor driving up drug prices.

Another factor contributing to higher drug prices is the lack of equivalent alternatives for certain original drugs.

To address these problems, Tarruna Ikrar suggested that the government should regulate drug prices by introducing a more balanced price cap to ensure affordable prices for consumers while ensuring fairness to the pharmaceutical industry.

Previously, Indonesia's Health Minister Budi Gunadi Sadikin admitted that drug prices in the country were three to five times higher than in neighboring countries. One of the reasons for this was inefficient distribution channels and a lack of transparency in management.

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