"If the problem is related to labor cost, we can still increase it. But if the raw materials are subjected to taxes and health instruments must shoulder import duties, the problem will be difficult to solve," Herkutanto said.
Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) has proposed that the government scrap duties on imported health instruments to keep down healthcare costs in the country.

"One of the reasons for high healthcare costs is duties on the importation of health instruments. If the duties are scrapped the healthcare costs can be lowered by up to 30 percent," the deputy chief of the chamber`s permanent committee for health policies, Herkutanto, said here on Wednesday.

Besides the import duties, the expensive raw materials used for the production of medicines have added to the healthcare costs, he said.

"If the problem is related to labor cost, we can still increase it. But if the raw materials are subjected to taxes and health instruments must shoulder import duties, the problem will be difficult to solve," he said.

Among the high-tech health instruments which are still subjected to import duties are Magnetic Resonance Imaging (MRI), CT scan, and a number of diagnostic and anesthetic instruments, he said.

"What we need are high-tech health instruments. Unfortunately, they have not been produced in Indonesia," he said.

Because of high capital for the procurement of health instruments coupled with import duties and taxes, the domestic healthcare services are very costly compared to those of neighboring countries, he said.

He said the high costs of health instruments and raw materials for the production of medicines have prompted 16 hospitals to abandon the Jakarta Health Card (JKS) program.

But the Jakarta Provincial Health Office said 14 of the 16 hospitals have joined again the program. The 14 hospitals are Bunda Suci, RS Mulya Sari, RS Satya Negara, RS Firdaus, RS Islam Suka Pura, RS Husada, RS Sumber Waras, RS Suka Mulia, RS Port Medical, RS Puri Mandiri Kedoya, RS Tria Dipa, RS JMC, RS Mediros and RS Restu Mulya.

Only two hospitals, RS Thamrin and RS Admira, have formally abandoned the program.(*)

Editor: Heru Purwanto
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