Government to hike prices of generic drugs

Government to hike prices of generic drugs

JAKARTA (JP): Head of the Food and Drug Control Agency
Sampurno revealed on Monday that the government would increase
the prices of generic drugs by some 15 percent starting April
this year.

The increase, he said, was in line with the rise in the cost
of pharmaceutical raw materials and fuel prices.

"The increase is also due to a decrease in the government
subsidy," Sampurno told journalists on the sidelines of a meeting
with House of Representatives' Commission VII on population and
welfare affairs.

In 1999, the subsidy was Rp 168 billion (US$16.9 million)
while last year's subsidy was Rp 105 billion ($10.6 million).

"So, we're expecting a lower subsidy this year," Sampurno
said.

"We're still discussing the (exact) percentage of the increase
with Ministry of Health and Social Welfare, though. Just give me
around two more weeks to give you the details. But the increase
is more or less 15 percent," he added.

The discussion, he said, also involved the drug companies.

Sampurno said that the government had not increased the prices
of generic drugs, which were 40 to 80 percent cheaper than
proprietary drugs, for the last five years.

He also called on patients to continue asking doctors to
prescribe generic drugs as these were cheaper while their
contents were basically the same.

According to Sampurno, drug stocks in the country were
sufficient at least until the end of the year.

"I would also like to urge the regional governments to use up
their entire budgets allocated by the central government for the
purchase of drugs, so that the regions won't run short," he said.

Meanwhile, the Indonesian Consumers' Foundation (YLKI)
expressed its regret at the government's decision to increase the
price of generic drugs.

"Other prices may be increased, but not drugs, because this
would only burden the people. Drugs are very important, so like
it or not, people have to buy them," said YLKI researcher Ida
Marlinda.

"Besides, many drugs stores disobey the regulations and sell
drugs at higher prices than those set by government," she said,
adding that, based on the findings of YLKI price surveys, such
pharmacies were mostly located in Jakarta.(hdn)