Investment in drug raw materials encouraged

Investment in drug raw materials encouraged

JAKARTA (JP): The government is encouraging companies to invest in the production of the raw materials used in the production of prescription drugs, in order to reduce the country's huge pharmaceutical imports bill.

The government will facilitate such investment and will help conduct the feasibility study for projects in this field if any private investors are willing to form a partnership with state companies, Minister of Health Sujudi told the House of Representatives (DPR) yesterday.

Sujudi told the House's Commission VIII, which oversees health affairs, that so far nobody has invested in this industry in Indonesia because of the huge initial capital required.

"Few pharmaceutical firms are willing to risk competition with imported pharmaceutical raw materials," he said.

At the same time, the minister urged companies contemplating investing in the industry to exercise caution.

"To avoid bankruptcy, those intending to invest in the basic industry will preferably be pharmaceutical companies that use pharmaceutical raw materials in large quantities," he said.

Director General of Drug and Food Supervision Wisnu Katim also invited firms which produce widely-consumed medicines, such as those taken for pain, fever, and intestinal worms to start producing their own raw materials.

"They have a captive market which can help them reach their break-even point quickly," he said.

Sujudi told reporters afterwards that a consortium of five pharmaceutical firms, including several state-owned companies, are currently considering the establishment of a basic pharmaceutical industry.

A feasibility study for the project is currently being conducted and the consortium is expected to be formed in the near future. The production plant itself may be completed by the end of this year, he said.

Wisnu said the consortium would include Indofarma and Kimia Farma, which are both state-owned, and the private Kalbe Farma and Konimex companies.

Wisnu explained that the production process used to make pharmaceutical elements is much more complicated and expensive than the process of producing the medicines themselves.

The upstream industry requires large amounts of solvents and raw materials, which must be imported.

Up to now, pharmaceutical companies have found it cheaper to import raw materials than to invest in their production.

Commenting on the latest reports about the Acquired Immune Deficiency Syndrome (AIDS), Sujudi told the hearing that a number of provinces have set up Commissions for the Prevention of AIDS.

At the regency and city levels, priority will be given to regions which are most susceptible to AIDS, such as those located along border areas, tourist centers and cities which have air and sea ports, he said.

He said budget constraint had slowed down the expansion of the anti-AIDS program.

Sujudi said AIDS was not only a health problem but also had social aspects.

"There needs to be comprehensive management for AIDS prevention involving various related sectors and government offices... Funds should come not only from the ministry of health but from local authorities and from the private sector as well," he said.

Official figures put the number of people who tested positive for HIV at 275 as of the end of last year.(pwn)