INDONESIA Law and Practice Contributed by: Wincen Santoso, Muhammad Pravest Hamidi, Daniel Wiyarta Tenggara and Rizka Rahma Briliana, Santoso, Martinus & Muliawan Advocates
For generic drugs listed in the e-catalogue, the highest retail price will be in the form of a formula of the highest retail price. Pharmacies, drug stores, and hospital or clinic pharmaceutical installations are required to sell drugs at prices equal to or lower than the high- est retail price indicated on the label. If the price provided on the label is no longer valid, they must adjust accordingly to comply with current regulations. Medical Devices There is no specific regulation on pricing for medical devices. 8.2 Price Levels of Pharmaceuticals or Medical Devices The price levels of pharmaceuticals and medical devices in Indonesia do not generally depend on the prices for the same products in other countries but rather are mainly determined by the production cost and the variables introduced by the importation process. The government has previously expressed concerns about the high price of certain imported pharmaceutical materi- als, which is caused by the fluctuating exchange rates, in the Appendix to MOH 17/2017. In 2023, the MOH conducted a focus group dis- cussion regarding access to and production of innovative drugs, comparing drug prices in Indo- nesia with those in other countries. 8.3 Pharmaceuticals and Medical Devices: Reimbursement From Public Funds While there is no specific regulation directly addressing the reimbursement of pharmaceuti- cals and medical devices, the public healthcare system is effectively managed by BPJS Health ( Badan Penyelenggara Jaminan Sosial Keseha-
tan ), an independent authority established to administer the national health insurance pro- gramme. BPJS Health mandates that every Indonesian citizen participates in the health security pro- gramme, regardless of any existing health insur- ance policies they may hold. It collects periodic contribution fees from all enrolled participants. These contributions are structured based on income levels. BPJS Health’s coverage encompasses a wide range of health services, including the costs associated with pharmaceuticals and medical devices. The extent and circumstances under which these costs are reimbursed from public funds are determined by the policies and operational Pharmaceuticals and Medical Devices There is no specific regulation that governs the application of cost-benefit analysis in determin- ing what price should be paid for pharmaceuti- cals or medical devices or in determining wheth- er pharmaceuticals or medical devices should be reimbursed. 8.5 Regulation of Prescriptions and Dispensing by Pharmacies The regulations concerning prescriptions by physicians and dispensing by pharmacies are not aimed at curbing spending on pharmaceuti- cals but, rather, at ensuring the safety of patients and protecting the community from the circula- tion of unsafe drugs. Pursuant to Article 320 of Law 17/2023, there are three types of drugs where a prescription is guidelines set forth by BPJS Health. 8.4 Cost-Benefit Analyses for
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