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)