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