Govt to control price of medicine

JAKARTA (JP): In anticipation of higher medicine prices the government is planning to control prices for branded-generic and patented medicines.

An official from the Ministry of Health, Sampurno, said on Thursday that the price of branded-generic medicines can now reach six times that of generic medicines.

Sampurno, the director general of Food and Drug Control, was speaking to journalists after witnessing the signing of a memorandum of understanding between the Indonesian Hospital Association and pharmaceutical company PT Phapros Indonesia.

A director of Phapros, Bina Suhendra, said since the economic crisis hit the country, "national (medicine) industries have increased medicine prices between 100 to 200 percent."

In the MOU Phapros is to supply medicines to the Association's 1,000 member hospitals. Bina said the firm could supply relatively cheaper medicines because of its association with a distributor group.

Sampurno said the medicines to be controlled would only comprise those considered essential such as antibiotics ampicillin and amoxicillin.

The generic antibiotic ampicillin costs Rp 4,800 at Melawai Apotik, while its branded-generic counterpart Kalpicillin costs Rp 11,800.

Patented medicines will also be monitored by the government. Registration for a product distribution license will have to include the maximum retail price, Sampurno said.

"We will not control the price, but if there is a hike the producers or importers will have to report to us," he said.

Pricing will depend on the kind of medicine and prices in other countries. "It can not be higher priced than what is sold abroad," he added. Prices of several types of medicine in Indonesia are said to be higher compared to other countries.

The ruling on price control will likely be implemented between July or August through a ministry instruction, Sampurno said. The maximum penalty for failure to adhere to the ruling will be revocation of a company's distribution license, he said.

Unethical promotional techniques used by pharmaceutical companies could also result in the high price of medicines, Sampurno said.

He cited companies giving bonuses in the form of gifts or services for the doctors prescribing their products. (10)