The world of health in Indonesia welcomed e-catalogue in the medical
vocabulary. An on-line trading system, e-catalogue was breakthrough facilitated
by the government’s goods & services procurement policy [LKPP] which was
designed for procuring goods and services for the public.
E-catalogue is an internet connection service, which enabled government
institutions to buy directly without auction process. By on-line system, at
least there would be no loophole for corruption. The LKPP campaign in
e-procurement for 100% of goods & services procurement departed from
presidential instruction no. 17/2011 on corruption prevention and eradication.
The e-catalogue obliged government bodies in 2012 to run auction by on-line,
i.e. 40% of budget for procurement in the provinces and cities and 75% in the
capital city. In the purchase order process, specification of goods, services
and price oil-fired by business counterparts were completely stated in the
e-catalogue.
By application of e-catalogue, there would be no loophole for collusion
this system could even eliminate bad bureaucracy ad paperwork administration,
or complicated process of goods and services procurement. While being more
efficient, procurement process also leads to healthy competition. Such would
enable the government to get proper prices while enhancing transparence.
Thereby financial leaking in goods and services procurement could be prevented.
PT Indofarma Tbk [INAF] announced they had won a tender for e-catalog for
generic medicines run by the ministry of health with investment worth Rp1.6
trillion. 150 factories participated in this e-catalogue based tender, but only
20 factories passed the selection. Indo Farma was one of the 20 generic
medicine producers who won the e-catalogue tender beside another
government-owned pharmaceutical company, PT Kimia Farma Tbk. Of 160 products,
109 were included in the catalogue.
“Indofarma was the greatest supplier of e-catalogue need, totaling Rp1.6
trillion which were all generic products. E-catalogue was participated by 20
factories of 150 factories operating in Indonesia.” Elfiano Rizaldi, President
of INAF, told the press in the stock market in Jakarta on Monday [13/5].
Indofarma had the biggest share of protects as companies were the
biggest supplier of generic medicines at national scale. By end of 2012
indofarma’s market share of generic medicines was posted at 17 percent, which
was the highest. Indonfarma was now in the process of verifying need for
medicines in regencies and cities in Indonesia. The result was that by June
demand worth Rp100 – Rp150 billions had been posted but it was not even enough
to fulfill need in all regencies and cities in Indonesia, and the figure could
grow even bigger. “We have urged the government to make a list of demand so
supply could be made ready” Elfiano was quoted as saying.
The e-catalogue was an electronic information system made by the
ministry of health which made list of generic drugs. By this system hospitals
would be enable to choose medicines as needed and agreeable by price.
Indonfarma was biggest supplier for e-catalogue, the magnitude of which was
posted at Rp1.6 trillion all of which were generic products.
Rizaldi said that the Rp1.6 trillion capital would be invested in all
generic medicines where of around 164 items of generic products owned by
indonfarma, 109 items entered starting from anti-biotic, hypertension
medicines, antic cholesterol drugs, hearts drugs, digestion drugs, and “We
expect also anti cancer drugs and serum.”
The e-catalogue program had investment value of Rp6 trillion. Indofarma
was the biggest producer in this program. So far indofarma had made
verifications and By May-June there were already Rp100 to Rp100 billions to be
produced and to be distributed to some cities in Java and on to probing markets
in East Indonesia.
Elfiano rated that the e-catalogue program was s good step because the
government directly set tender to factories not to distributors so factories could
after low price for the government to be calculated an per item and per
province basis.
Distribution of General Medicines
In the marketing of generic drugs, the company through its subsidiary
company PT indofarma Global Medika [IGM] was having a golden harvest. As a
pharmaceutical distributor company of high experience with good command of
infra structure, IGM was able to drum up medical producers to collaborate in
e-catalogue. It came as no surprise that of all producers joining the tender,
75% of them choose IGM to act as their distributors. “IGM was well experienced
and had adequate facilities to apply e-catalogue” Ahdia Amini, Director of
Operations and Business Development of IGM was quoted as saying.
Amini stated that some of the winners of e-catalogue already had signed
contact with pharmaceutical factories and LKPP. In an umbrella contacts, the
distributor was not mentioned. The umbrella contract signaled that these were
the winners of e-catalogue for certain items in terms of price for certain
areas.
According to Amini, there were three stages being done by IGM. Firstly,
to confirm the amount of purchase order. Secondly, to deliver goods and
thirdly, to bill payment and deposit to factory. Estimated sales for indofarma
in 2013 in e-catalogue was around Rp700 billions. However, all depended on the
budget in the headquarters. The realization also depended on allocated budget
in the regions.
Amini said that he would foster collaboration with national pharmaceutical
producers and strengthen distributor network through branches in the regions.
“Because producers were the ones who could offer prices in the e-catalogue.
There they had to insert the name of distributors. So our target is the more
producers who would engage us as distributors the better” he stressed.
IGM according to Amin, were experienced distributors and they had
complete supporting facilities. While commanding over 30 branches in Indonesia,
IGM was now adding 3 more branches in palu, Ambon and Jember. The more
aggressive was IGM in applying e-catalogue, the more INF could be spurred on in
their performance as holding company. So far evidently IGM had been the main
contributor in enhancing INAF performance.
Moreover around 80 percent of sales of holding company were distributed
by IGM; the rest were through other distributors. Regularly IGM served
distribution for 9,360 apothecaries, 1,296 hospitals and 431 big pharmaceutical
companies. For the government, IGM served 450 health divisions of cities and
regencies, 33 provinces and 500 government hospitals. (SS)
Business News - May 17,2013
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