Indonesian drug firms ask for more time

To prevent price gouging and make health care more affordable in Indonesia, Health Minister Siti Fadillah Supari issued a decree on February 7 requiring drug producers to label each product with the highest retail price set by the Minister. The decree stipulated that the new retail price listed on the label would be the drugstore net price plus 10% value-added tax and 25% profit margin.

Although the decree became effective on August 1, the chairman of the Indonesian Pharmaceutical Association, Anthony Sunarjo, said the organization had "asked the Health Minister to give its members until the end of the year to fully implement the decree's requirements. The process requires extraordinary adjustment." On July 1, the Association sent a release to members confirming the gradual scheduling of implementation and issuing a new price list for branded generic drugs. It added that drug distributors would inform retailers of the drug prices by September 1, and that retail pharmacies w.ould not change prices until October 1.