Indonesia
Herbs and Traditional Medicine Association (GP Jamu) expected the Trade
Ministry to act firmly against foreign companies who distribute goods and
services in the local market and who violate the law. As GP Jamu considers that
there is frequently an overlapping of authority among institutions/ministries
concerning distribution of goods. For example, Larutan Penyegar health beverage
that has been decided by the Supreme Court because there are two products with
almost similar brands circulating in the market. While, in fact, if there is a
Supreme Court’s decision, the losing party is not allowed to distribute its
products. But, they argued that they have acquired licence from the Drug and
Food Control Agency (BPOM), Charles Ong Saerang, Chairman of GP Jamu, told
Business News.
Circulation of two different brands
of larutan penyegar health beverage has spread to shops, retailers, and outlets
in some regions in Indonesia. As a consequence, consumers cannot distinguish
which one is locally produced and which one is imported. While, Supreme Court’s
decision has been issued in October 2011 so that it is decided that the
distribution right goes to the local company. Supreme Court’s Decision decided
that SBS wins suit against Kino with regard to Larutan Penyegar Cap Badak
trademark case which affects distributors and agents of the product in the
regions. Finally, consumers no longer care about originality of product and
brand. Many bought Larutan Penyegar produced by a Singaporean company.
Comsequently, the sales rate of our original brand dropped up to 40 percent.
The Singaporean company made attractive offers, like Buy One Get One and other
offers.
The apparatus secured thousands of
bottles and cans of larutan penyegar produced by both companies. Even, staff of
both companies have been investigated. At that time, the apparatus investigated
two products of larutan penyegar as they are deemed illegal. Finally, the
Supreme Court issued a decision in October 2011, but both products with
different brands are re-circulating in the market. We are waiting for the
action of BPOM who issues the license.
GP Jamu and the company who won the
case will file a somasi (reprimand). But, if BPOM has not taken action, the
company who won the case will file a lawsuit to the State Administrative Court
against the Singaporean company. The foreign company could ruin the reputation
of local product. We have also met with Vice Minister of Trade, Bayu Krisnamurthi.
He is supportive and will ask BPOM about this matter. BPOM does not pay
attention to the market, but on the product substance. While, the Trade
Ministry pays attention to the market.
The Indonesian Brand Association
(Amin) urges the Trade Ministry to act firmly against circulation of imported
traditional medicines. As there are similar products from China and India that
have been circulating in the local market. Even though there have been no
significant consequences, Amin feels the need for a firm action from the Trade
Ministry with regard to distribution of goods and services in the local market.
Fortunately, up to the first quarter of last year, sales still increase by
10-15 percent. But, we not yet know about sales in the second quarter. We must
be anticipative to prevent imported products from threatening local products.
The unique characteristic of Indonesian herbal medicines must be maintained as
national assets. Putri K. Wardani, Chairman of Amin, told Business News.
Anticipation is required as free
trade system could result in distortion of local products. Even, Amin and GP
Jamu have identified manipulation of local brands consumers. The manipulation
could be in the form of adding a few words behind the patented original brand.
Value
of China’s import to Indonesia in 2006 reaches USD 8.3 billions. In 2010, it
tripled to USD 21.7 billions. This year, volume of Chinese products could
increase more, including shift of export (from Europe) to Indonesia.
BUSINESS NEWS - April 27, 2012
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