Many pharmaceutical companies had demanded that generic drug prices be increased because the prices were unreasonably low.
Jakarta (ANTARA News) - The Health Ministry is to review the prices of generic drugs in the market in light of the fact that an increase in tax on medicinal raw materials has prompted pharmaceutical industries to raise the prices of branded drugs, a spokesperson said.

"We will review generic medicine prices, but if they are eventually increased, the hikes will not be sharp because we must keep them affordable by most people," Sri Indrawati, director general of pharmaceutical and medical devices development at the health ministry, said here Friday.

Moreover, she said, many pharmaceutical companies had demanded that generic drug prices be increased because, in their view, the prices were unreasonably low.

Following the imposition of a 5-percent duty on imported medicinal raw materials through Finance Ministry Regulation number 241/2010, drug companies had raised the prices of their products since January.

Sri Indrawati said the review of generic drugs prices would be done later this year and was expected to be completed as soon as possible.

The Health Ministry had earlier called on pharmaceutical companies not to raise their drug prices since there would then be many people who could not afford to buy branded drugs.

"The Health Ministry will greatly appreciate their decision not to raise drug prices but to reduce their profit margins instead," she said.

Sri said that a drug price increase would mostly impact on the middle and upper class people who spend their own medical treatment expenses because the poor will still be guaranteed by the national healthcare insurance (Jamkesnas and Askes) schemes.

There was also no plan to increase Jamkesmas funding despite the rising drug prices because it has a fairly strong bargaining position to push the price of drugs and most Jamkesmas patients are consuming generic drugs.

Previously, the Joint Pharmaceutical Companies (GP Farmasi) called on the national drug manufacturer to restore the drug price to its original price as in 2010 because at this is not the right time to drug raise prices amid electricity tariff hikes, inflation rates above six percent and a 12 percent minimum wage (UMR) rise.(*)

Editor: Heru Purwanto
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