National pharmaceutical industry players are optimistic to compete in the ASEAN market. Chairman of the Indonesian Pharmaceutical Association (GP Farmasi), Johannes Setijono, in Jakarta on Thursday (December 26), claimed that GP Farmasi was; preparing for the ASEAN Economic Community in 2015. The preparation is mainly to increase technological capabilities in order to compete with foreign pharmaceutical industry. He said that the technology improvement is useful for production efficiency. According to him, in the last few years, the pharmaceutical industry has invested Rp1.5 – Rp2 trillion to increase production capacity.
Johannes said that so far the Indonesian pharmaceutical market was dominated by domestic industry. Of the market value of Rp. 47 trillion in 2012, 70% belongs to the domestic pharmaceuticals industry. While in Southeast Asia, the average market domination is balanced between domestic and foreign industries. He said that in last three years, pharmaceuticals industry investment value is Rp.3 trillion. Most of the investment is to increase production facilities in order to meet the quality of drug manufacturing according to requirements. “Hopefully national pharmaceutical entrepreneurs can be a host in their own country”, Johannes said.
It is said that the pharmaceutical industry can be a power in the ASEAN Economy Community (AEC) by 2015. However, if the management is not good, than the pharmaceutical industry can be a boomerang.
He said that Indonesia with its economic growth and population number only becomes a target market. According to him, the health sector in Indonesia was still very attractive to investors. He said the Indonesian pharmaceutical market accounted for 42% in the ASEAN market, followed by the Philippines 16%, Vietnam 15% and Thailand 12%. According to him, Indonesia is also one of the countries that have the fastest growth of pharmaceutical industry in ASEAN.
Beyond the magnitude of the ASEAN market, pharmaceutical industry in Indonesia is growing satisfactorily ahead of the implementation of the National Social Security System (SJSN) through the Social Security Organizing Agency (BPJS).
Minister of Health, Nafsiah Mboi, said that starting January 2014, SJSN will be managed by a single entity, that is BJPS. He explained that in principle, in health insurance system, the premium is financed. Then, it is used for a comprehensive and qualified health services in accordance with the law. So for those who cannot afford, the government will pay the premium, and that is called JAMKESMAS (Public Health Insurance) and Jamkesda (Regional Health Insurance).
So it is with private hospitals, if it has the same class, namely class three, then the treatment and payment services are also the same. So it is well distinguishable, both in terms of responsibility of providing health care and the guaranteed side. Private hospitals, based on the law, minimum 25% is class three and the hospital already has a class three and was able to serve the community who participated, both in JAMKESNAS at this time, and later on when SJSN is already valid, they could also become participants of social health security. The Minister also explained about hospital sister program to improve the quality of health services in the hospitals both in terms of human resources, system or management.
Sister hospital system is, for example, a hospital has advanced and there is a hospital that is still developing. Advanced hospitals help hospitals which are still developing to improve its quality, by training the doctors, midwives, nurses and so on. This cooperation can be carried out between private and state-owned hospitals and with overseas hospitals.
Business News - December 30, 2013