Politics
RI medical equipment is 5 times more expensive than other countries, Jokowi summons the minister!
Jakarta, CNBC Indonesia – President Joko Widodo held a meeting regarding the prices and expensive Indonesian medical equipment at the State Palace in Jakarta, Tuesday (2/7/2024). At the meeting, it was emphasized that the prices of Indonesian medical equipment and medicines could be cheaper.
Health Minister Budi Gunadi Sadikin explained that the price difference of Indonesian medicines is three to five times higher than abroad. Therefore, the president's wish is that the prices of medical devices and medicines are equal.
“First, the prices of medical equipment and medicines can be the same as those in neighboring countries. In our country, the prices of medical equipment and medicines are expensive,” Budi Gunadi said after the meeting.
The president also advised, Budi continued, that the domestic medicine and medical equipment industry should start building itself in a way that it can survive in the face of another pandemic.
It was explained that the high cost of medicines and medical devices was due to inefficient trade routes.
Therefore, according to Budi, the management of trade in medical equipment and medicines must be more transparent and open in order to avoid unnecessary price increases in certain situations.
Former Bank Mandiri director also addressed tax issues at the meeting. How can this taxation not disrupt the government's revenue and cash flow?
“Taxation is important because there is a time lag problem and interest in Indonesia is still relatively high. So if cash flow “Delayed by 3 to 6 months, the cost could be 5 to 8%, our interest burden is 8 to 10%,” he explained.
As for making the prices of medical devices and medicines cheaper. Technical coordination between ministries such as the Minister of Finance and the Minister of Commerce is therefore necessary to design an industrial ecosystem.
He gave an example of out-of-sync regulations: for purchasing USG machines you get 0% import duty, while for importing components such as displays, USG electronics and raw materials you are actually subject to import duty of around 15%.
“There are inconsistencies. On the one hand, we want to encourage the industry to produce domestically, but the incentive system is not aligned,” he said.
In addition, the purchase of medical equipment is also carried out by the government. As for the purchase of catheterization laboratories for 514 districts/cities, according to Budi, the government should no longer import but build catheterization laboratory factories in the country.
“To see the policy of purchasing cath labs, if possible we would like to see a cath lab factory come in, how can this factory come in. Because the government needs 514 cath lab units. Private hospitals will definitely follow this,” he said.
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Sources 2/ https://www.cnbcindonesia.com/news/20240702102058-4-551076/obat-alat-medis-ri-mahal-5x-lipat-negara-lain-jokowi-panggil-menteri The mention sources can contact us to remove/changing this article |
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