Tuesday, 1 July 2014


Today use of generic medicine was not prioritized by most people, but opportunity in the generic medicine market was believed to grow with National Security System [SSJN] being put in effect this year. Admittedly today many people were not convinced about efficacy of generic medicines so it was felt necessary to educate people and give away free medicines to the public.

The increasing number of people using generic medicines was not only in Government hospitals, some private hospitals which were not of the lower middle strata were also starting to use generic medicine. Besides the public perception of generic medicines was getting more positive with well-packaged, logo inserted products now in circulation.

The Secretary General of the Association of Indonesian Pharmacy Producers Tirto Kusnadi stated in Jakarta on Monday [16/6] admitted that application of SSJN was a “blessing” to players of the pharmaceutical industry. They were advantaged by SSJN. Thanks to the application of social insurance managed by the Executive Body of Social Insurance [BPJS], the pharmaceutical industry could produce more generic medicines. “SJSN encourage use of generic medicines and for sure there would be production increase although not drastically.” Tirto remarked.

Tirto estimated growth of this year might reach 17% or up by 4% of last year’s production. According to Kusnadi last year to total value of national medicine production came to Rp 35 trillion. Of that amount, generic medicine only contributed around Rp 7 trillion as the price was by far cheaper than products of big pharmaceutical producers.

Meanwhile the Ministry of Health had schemed up a roadmap of national medicine policy to ensure availability of medicine in tandem with Health BPJS Insurance. By the time BPJS operated, the need for medicine was estimated to multiply 2.5 to 3 times. The Ministry of Health was optimistic that production capacity of Indonesian pharmaceutical companies could still meet threefold demand. The amount of medicine bought by the Government today was still only for 95 million people, the rest of population must buy medicines for themselves.

With the application of BPJS-Health Insurance, Indonesia could fulfill need for around 240 million people. Today pharmaceutical companies were racing to make generic medicine and include their products in the List of Medicine Price Ceiling [DPHO]. The potential for growth of generic medicines and health equipments was estimated at Rp 9.2 trillion in line with increasing demand due to SJSN.

The Minister of Health reported that PT Kimia Farma Tbk and PT Indofarma Tbk, two state owned emitents were planning to produce new medicine to anticipate SJSN. The production of new medicines was to meet increasing demand in line with application of SJSN. Kimia Farma would produce and market 11 cancer medicine, while Indofarma would produce 15 items of new medicines, PT Indofarma Tbk would increase production capacity for generic drugs up to 6.9 billion tables Iin 2013, an increase of 200% against production capacity of 2012 by 2.3 billion tables.

Similarly PT Dexa Medica would increase production output from 1.5 billion generic medicines to 2 billion tablets to keep up with growth in 2014. Today, Dexa Medica controlled over 19% of national generic medicines. PT Kalbe Farma Tbk projected sales of generic medicines to grow by above 20% - 25% in line with application of SJSN in 2014. Kalbe Farma had accomplished building of new factory of generic medicines at the cost of Rp 150 billion. Although Kalbe Farma only contributed only 2%-3% of generic medicines to company’s sales, they were very serious about aiming at the generic medicine market. (SS)

Business News - June 20, 2014

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