NasDem Demands Government Reduce Tax on Medical Devices and Medicines Due to High Treatment Costs
The Health Minister, Budi Gunadi Sadikin, has signed a cooperation agreement with the KPK (Corruption Eradication Commission) to expose alleged corruption in the healthcare sector in addressing high medicine prices in Indonesia. Irma Chaniago, a member of the NasDem faction on Commission IX of parliament, has called on the government through the Ministry of Health (Kemenkes) to propose reducing taxes on medical devices (alkes) and medicines.
“In my view, if such steps are indeed based on clear data and evidence, we would certainly support them. In any case, what the health minister should do is reduce taxes on medical devices and medicines,” Irma told journalists on Friday, 13 March 2026.
The NasDem party chairman then referenced lower treatment costs in Penang, Malaysia. Irma urged the Indonesian government to provide tax stimulus similar to the Malaysian government.
“If the government wants treatment costs to be as affordable as in Penang, then the government must provide stimulus in the form of light taxation as Malaysia does. So that Indonesian citizens’ healthcare costs become affordable and Indonesians no longer need to travel to Penang for treatment,” Irma said.
Irma also agreed that law enforcement should investigate the reasons behind high medicine and medical device prices. “I certainly agree with legal proceedings if high medicine prices are caused by fraud by individuals involved in medicine production or importation,” she added.
Health Minister Suspects Expensive Medicines Due to Corruption
The Health Minister, Budi Gunadi Sadikin, suspects that high medicine prices in Indonesia are linked to potential systemic corruption in the healthcare industry. He requested that the KPK assist in investigating the matter.
The Health Minister made this statement whilst delivering remarks at a memorandum of understanding (MoU) signing ceremony between the Ministry of Health of the Republic of Indonesia and the KPK regarding efforts to eradicate corruption offences in the healthcare sector at the Ministry of Health building in Jakarta on Wednesday, 11 March.
Budi stated that one of the most frequent complaints from the public concerns medicine prices in Indonesia being significantly higher than in other countries, including Malaysia.
“What people probably feel most acutely is the high cost of medicines. Compared to Malaysia, prices here can be 3 to 5 times higher,” Budi said in his remarks as quoted by detikHealth.