Image Credits : Free Malaysia Today
Indonesian President Joko Widodo in a bid to make healthcare more affordable, has directed the country’s National Agency of Drug and Food Control (BPOM) to implement significant price reductions for medicines and medical devices. The goal is to bring prices in line with those in Malaysia and Singapore, countries where drug costs are often considerably lower.
During a meeting with key ministers at the Presidential Palace in Jakarta, President Widodo highlighted the disparity in prices between Indonesia and its regional counterparts. He emphasized that medicine prices in Indonesia can be three to five times higher than those in Malaysia due to inefficiencies in trade routes and inconsistent governance.
To address these challenges, Health Minister Budi Gunadi Sadikin and Finance Minister Sri Mulyani Indrawati have been tasked with identifying areas where reforms could streamline processes and reduce costs. This includes simplifying tax structures within the healthcare industry. The current taxation system is seen as a contributor to the inflated prices, with domestic manufacturers facing higher duties than those levied on imported products.
Budi noted that some essential medicines remain unaffordable for many Indonesians, with generic drugs in the public sector costing 2.5 times more than the cheapest alternatives available in neighbouring countries. Local government procurement prices are also notably higher than international standards.
The president set a two-week deadline for his ministers to present actionable solutions. The administration’s focus on healthcare reform comes amid concerns about the country’s preparedness for future pandemics. By reducing costs and improving access to affordable medicines, the government hopes to bolster the resilience of the healthcare system.
Finance Minister Sri Mulyani has assured that any reforms will be implemented carefully to maintain fiscal sustainability while supporting the domestic pharmaceutical industry with potential incentives