Pharmaceutical industry may face drug shortages

JAKARTA (JP): The city chapter of the Federation of Pharmaceutical Entrepreneurs has strongly urged foreign banks to accept its members' letters of credit (L/Cs) issued by local banks.

The capital would otherwise face a serious shortage of medicines as the industry could no longer produce medicines due to the absence of imported substances, the federation's chairman Achmad Ruhiat said Tuesday.

The industry is 90 percent reliant on imported raw materials, he said, adding: "If we cannot not import materials, we will produce nothing."

Federation data reveals that the city's pharmaceutical companies have not been able to import raw materials since November as their L/Cs have been rejected by foreign banks, he said.

"Even though we have enough money it's not a guarantee that we can run our businesses properly because the current import system relies on the L/Cs system," he said.

Following the rupiah's significant drop against the U.S. dollar since July, the price of medicines -- as with other goods and services -- has skyrocketed between 30 percent and 300 percent, Achmad said.

The rejection of companies' L/Cs by overseas banks has not only burdened the industry but could also badly hurt the people, he warned.

But the industry is not the only sector facing such problems.

Almost all Indonesian importers have complained of similar treatment from foreign banks who fear companies cannot service their commitments.

The head of the pharmacy division of the City Regional Health Office, Azwar Daris, has said the rejection of L/Cs has also affected many public hospitals as their medicine stocks and pharmacy equipment have dropped to emergency levels.

"Injection needles, laboratory equipment and dialysis machines are very difficult to get nowadays," Azwar, who accompanied Achmad, said Tuesday.

Therefore, his office has urged all public hospitals here to cooperate with related institutions to get more medicine and pharmacy equipment supplies, he added.

"We have also agreed that from now on public hospitals are free to buy drugs directly from producers without having to go through a bidding process first as required in the past." Azwar said.

The bidding process only complicates procedures whereas ailing people should be treated as soon as possible, he said.

Azwar also lamented that drug producers had hiked prices so much that many drugstores had been forced to close.

"Producers have already hiked prices two or three times. No wonder drugstores cannot afford to buy the medicine."

According to Achmad, the federation has just established an information exchange forum designed to help coordinate the supply of medicines and medical equipment.

"The forum hopes health units will reveal information on their medical and equipment stocks so that if others need the materials, they can exchange supplies," he said.

The head of the City Health Agency, Aslan Lasman, said Tuesday the city was also facing shortages of drug packaging.

"Some drugstores have hiked prices of medicines because the cost of packaging is also soaring," Aslan said.

In a bid to solve the problem, he said that from now on medicines would be packaged in a thin plastic bag.

"They're cheap and available almost everywhere," he added.

City councilor Afiff Hamka from Commission E for welfare affairs said Tuesday soaring prices and a lack of medicines plus the potential spread of cholera, diarrhea or dengue fever in the city during the current rainy season would further burden many Jakartans. (ind/edt)