In a recent interview with Tribunnews.com journalist, Endrapta Pramudhiaz, the Head of the Indonesian Food and Drug Monitoring Agency (BPOM), Taruna Ikrar, shed light on one of the key factors contributing to the high prices of medication in Indonesia. According to Taruna, pharmaceutical companies incur significant costs for distribution, marketing, and advertising, which ultimately drive up the prices of drugs in the country.
During the exclusive interview at the Tribunnews Studio in Palmerah, Jakarta, Taruna emphasized the financial burden that companies face in promoting and distributing their products. „They spend a lot on marketing, distribution, advertising, and so on. This is why drug prices increase,“ Taruna explained.
To address the issue of high drug prices resulting from hefty marketing and advertising expenses, Taruna highlighted the concept of the Highest Retail Price (HET). The regulation of drug HET is outlined in Minister of Health Regulation No. 98 of 2015 concerning the Provision of Information on the Highest Retail Price of Drugs.
Taruna stated that BPOM will require pharmaceutical companies to display the HET on the packaging of the drugs they sell. Before obtaining market authorization, companies are obligated to include this information. „BPOM’s responsibility is to issue market authorization numbers. Before circulation, they must include the label. So, we hold the label,“ Taruna elaborated.
By implementing this regulation, Taruna hopes that companies will no longer be compelled to disclose the HET of drugs. „By indicating the highest retail price, logically, they no longer need to incur excessive costs for distribution, marketing, advertising, and so on, right?“ Taruna expressed.
The emphasis on HET serves as a mechanism to control drug prices and alleviate the financial burden on pharmaceutical companies. With this regulatory framework in place, the aim is to create a more transparent and cost-effective system for the distribution and marketing of medication in Indonesia.