Monday, 12 January 2015


The Law on Social Insurance Management Institution [BPJS] had evidently revitalized national pharmaceutical Industry since 2014 and at the same time controlled consumption of irrational medicines and over prescription. In 2014, national demand for medicine increased by 2.5 to 3 times to become 240 million dosages against 2013. Data of Pharmacy and Health Equipments Development, Ministry of Health had it that today there were around 94 million dose of public medicines in Indonesia. “The National Health Guarantee [JKN] and BPJS was a blessing to pharmacy industry in Indonesia,” The Director General of Pharmacy and Equipments of the Ministry of Health, Maura Linda Sitanggang stated in Jakarta on Tuesday [25/11].

Linda stated that today there were more than 200 pharmacy factories in Indonesia, 60 of them supplying 80% of national need. Meaning, more than 170 factories were not producing to the maximum. With BPJS Law being put in effect, she said, the people need not to worry about medicating because of high cost. The people needed not take money from their pocket because medical expenses were covered by BPJS plan.

He said that the Government was focusing attention on building health infra-structure. with SJSN she said, all people would have their health need guaranteed, not expecting foreign residents who had been staying for at least 6 months in Indonesia. The Government would cover premium installment for the poor people. Meanwhile informal workers whose income was not fixed, would be regulated by the Government and House hoping it would be accomplished in 2019.

This year BPJS was predicted to cover 86.4 million Indonesian citizens with total cost of Rp.7.4 trillion. Beside BPJS pharmacy industry growth was also supported by Government’s plan in increasing health expenses. To refer to article 171 [1] Law 36 2009 on health, it was written that Government budget must at least be 5% of total state’s budget.

To quote latest report of International Business Monitor [BMI] national pharmacy market was projected to increase by 9% to become Rp.69.4 trillion this year against Rp 9% to become Rp.69.4 trillion this year against Rp.93.8 trillion in 2013. One of the uplifting factor was application of SJSN run by BPJS Health. Such was supported by Indonesia’s population which was the biggest in Southeast Asia. Besides, Indonesia’s economic growth would be predictably solid in the next few years. Other factors was increasing demand for medicines for certain diseases, medical equipments and health services.

However BMI rated that health services in Indonesia was not too expensive. This year, BPJS services only covered 40% - 50% of Indonesia’s population. Therefore, it takes time for pharmaceutical companies to capitalize the potentials of national pharmacy market which was enormously wide. BMI predicted that health expenditure in Indonesia this year would increase by 15% to become Rp.325 trillion against Rp.285 trillion in 2013.

Linda elaborated that as realization of Law no 4 /.2004 on SJSN there were 2 BPJS namely BPJS Health and BPJS Labor. The two bodies were ‘reincarnation’ of 2 BUMN which had been playing their important role, i.e. PT Askes [Persero] and PT Jamsostek. Askes would change to become BPJS Health, while Jamsostek would become BPJS Labor and start to operate by July 2, 2015 at the latest. By estimate, health expenditure in Indonesia kept growing year after year. (SS)

Business News - November 28, 2014

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