Indonesian generic drug prices rise 19.8%

Following the abolition of a subsidy, the Indonesian government hasallowed local pharmaceutical companies to raise the prices of generic drugs by an average 19.8%, reports the Jakarta Post. The drugmakers had asked the country's food and drug supervision board, the BPOM, for a 40%-48% increase.

The rise was approved to help drugmakers deal with the higher operating costs that followed the subsidy's ending, because the government no longer has the financial means to subsidize the sale of generic drugs, said the BPOM's head, H Sampoerno.

Indonesia has over 100 drug firms making 262 different generics, reports the Post. The country's industry is very dependent on imported materials, and the fall of the rupiah has raised the prices of imports. Increases in the cost of fuel are also cited by the companies, said Mr Sampoerno, who stressed that, despite the price rises, generics are 25%-27% cheaper than brand-name drugs. Generics account for only 8% of total drug sales, he is reported by the Post as saying, while the government remains committed to providing affordable health care, with generics available free at community health centers in every district or sub-district of the country.