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)