Business · Economy · 9 hrs ago

Indonesia’s drug regulator prepares for costs to rise as rupiah weakens

Indonesia’s drug regulator prepares for costs to rise as rupiah weakens

Indonesia’s Food and Drug Authority, known as BPOM, says a weaker rupiah could raise drug costs because manufacturers import some ingredients and production materials.

A BPJS Watch advocate said more than 90 percent of raw materials are imported, mainly from China and India.

The advocate said drug prices could rise by about 10 percent, but this was a potential increase, not a confirmed change.

BPOM is talking with drugmakers and wholesalers to prepare for supply-chain disruptions.

It has encouraged companies to diversify suppliers, use more locally made materials and consider alternatives that meet safety and quality rules.

BPOM also says it can help companies with regulatory processes as they adjust production.

The agency says it will work with other government bodies to support medicine access and promote fair price changes, while ensuring medicines remain safe and effective.

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What people are saying

Lynda Kurnia WardhaniHead of BPOM’s Bureau for Cooperation and Public Relations
This condition can impact the increase in procurement costs of raw materials, production costs, as well as drug distribution, which ultimately has the potential to affect drug prices and availability in the community
via Tempo EN
BPOM also encourages that any adjustments to production costs and drug prices be carried out fairly, keeping in mind the interests of the public as consumers
via Tempo EN
Timboel SiregarCoordinator of Advocacy for BPJS Watch
The tendency for health inflation is becoming high
via Tempo EN