KPPU has recommended some options, one of them is to recalibrate the ceiling price, so that pharmacies and drug stores can get a reasonable margin.
Jakarta (ANTARA) - The Commission for the Supervision of Business Competition (KPPU) has asked the government to recalibrate the ceiling price of therapeutic COVID-19 drugs so that retailers can earn a reasonable profit.



At an online press conference here on Friday, KPPU's director of economy, Zulfirmansyah, said the commission has received information from the field that many drug stores and pharmacies are complaining about the low profit margins for COVID-19 drugs.



"KPPU has recommended some options, one of them is to recalibrate the ceiling price, so that pharmacies and drug stores can get a reasonable margin," he informed.



As the profit margins are too low, traders are preferring to sell vitamins instead of therapeutic drugs, he said.



This has reportedly become a factor that has triggered drug scarcity, although pharmacies have not tried to withhold supplies amid the supply-demand imbalance, he added.


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"We have the data of supply and demand for (COVID-19) medicines and oxygen in each region. There are imbalances in supply and demand. Probably, they are withholding the supply or there is no supply at all. When we checked on the Farmaplus application, some of them did not have the supply," Zulfirmansyah said.



According to KPPU Commissioner Ukay Karyadi, the government's decision to set a ceiling price for COVID-19 therapeutic drugs has curbed profit margins right from the level of industries to distributors and retailers.



"Therefore, we recommend the government recalibrate the ceiling price by involving the pharmaceutical industry, including retailers," Karyadi said.

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The government could maintain the ceiling price, but then, it should provide a subsidy to cover the distribution costs, he suggested. Or, it could mobilize state-owned pharmacies and healthcare facilities to serve as medicine distributors, he added.



"State-run healthcare facilities and pharmacies are expected to meet the demand for essential drugs," he remarked.



According to Karyadi, due to low profit margins, pharmacies are preferring to sell vitamins, which have been excluded from the ceiling price regulation.


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Translator: Ade Irma Junida, Sri Haryati
Editor: Fardah Assegaf
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