Govt allocates Rp 700b to subsidizes drug prices

Govt allocates Rp 700b to subsidizes drug prices

JAKARTA (JP): The government has allocated Rp 700 billion
(about US$70 million) to subsidize the soaring price of imported
generic drugs and vital medical equipment this year, a cabinet
minister said here yesterday.

Minister of Health Sujudi said the subsidy was badly needed to
stave of a shortage in medical supplies. Only four months supply
of certain medicines remain and replenishment of stocks has been
hampered by the rupiahs steady depreciation against the U.S.
dollar.

"If this (medicine scarcity) occurs, it will be very serious
because we have 7,000 community health centers and over 1,000
hospitals, providing a fairly high standard of healthcare," the
minister said after meeting with President Soeharto in the Bina
Graha presidential office.

Figures released by the Ministry of Health show that the
government spent $178.32 million on importing raw materials for
201 types of generic drug last year.

Generic drugs account for 80 percent of drugs prescribed,
while 90 percent of the raw materials needed in the manufacture
of the drugs had to be imported, the minister said.

Sujudi's statement came amid worries over the availability of
medicines in hospitals and drugstores. Last week, three kidney
patients in Bali reportedly died after the hospital where they
were being treated ran out of the necessary drugs.

The government has, since 1989, run a campaign to promote the
use of generic drugs, a more affordable treatment for many
illnesses.

"This is a blessing in disguise because now more people will
use generic drugs. Before this crisis they were regarded as
cheap medicines of inferior quality," Sujudi noted.

The government will also subsidize imports of medical
equipment, especially equipment for use in public hospitals, he
added.

Sujudi discussed the importance of maintaining the family
planning program. "We must also remember family planning
medicines. If we run out of family planning medicines, we will
produce more children. I think we need about $20 million in this
area." he said.

According to Sujudi the President has approved allocation of
$116 million to procure a six month supply of imported medical
products. A Letter of Credit worth $58 million was issued
recently to cover needs for the first three months of this
period, Sujudi noted.

In a meeting with Soeharto last week, World Bank President
James D. Wolfensohn pledged that the World Bank would assist
Indonesia procure medical supplies for public hospitals and rural
health centers in Indonesia.

"This program has a wider target, because it includes
laboratory materials like X ray film. For the World Bank this
sector is not a priority," Sujudi said. (prb)