Sunday, 7 July 2013

INDOFARMA LAUNCH E-CATALOGUE AND REAP RP1.6 TRILLION



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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