Drug Prices Rise 20% Due to Weak Rupiah, Health Office Cuts Patient Quotas

Drug prices in Tangerang Regency, Banten, have surged by up to 20 per cent due to the recent weakening of the rupiah against the US dollar, which has pushed up the cost of imported raw materials. As a result, local government health facilities have been forced to reduce the amount of medicine dispensed to patients.

Head of the Tangerang Regency Health Office Hendra Tarmizi explained that the national pharmaceutical industry remains heavily dependent on imported raw materials, making it highly vulnerable to exchange rate fluctuations. Rising fuel prices have further exacerbated the situation.

“Across Indonesia, drug prices have risen by around 15 to 20 per cent. Inflation has a significant impact on drug prices because some basic ingredients are imported, not to mention the effect of fuel price hikes,” Hendra said on Friday (12/6).

Hendra noted that the price surge is straining the local health budget, compelling health facilities to adjust how they dispense medication. “The impact is that people will inevitably receive fewer medicines. Where we used to give a 10-day supply, we now give five days,” he explained.

Despite the cutbacks, Hendra assured that the price increases would not disrupt the free healthcare programme. The local government is committed to increasing the health budget to cover the shortfall. “It must remain free; the local government will provide the additional funds,” he stated.