Protection of Drug Raw Materials Through Price Standardization as a Business Rule in Supporting Competitive Local Drug Production

DOI

10.2991/978-2-494069-93-0_81How to use a DOI?

Keywords

Price Benchmark for Raw Materials for Drugs; Business Rules; Domestic Economic Competitiveness

Abstract

One of the contents of the Economic Policy Package Volume VI concerns the importation of drugs and raw materials. Because the price of drugs is very high because the raw materials come from abroad. Almost 95% of medicinal raw materials are still imported, which makes the price of drugs expensive. It is necessary to have the independence of the domestic pharmaceutical industry to reduce drug prices and dependence on imported drug raw materials. This is not impossible because the pharmaceutical industry was included in Indonesia's priority industry in 2015–2035. Efforts are needed to reduce imports of medicinal raw materials (BBO) to support drug independence in Indonesia. Using domestic medicinal raw materials will likely adjust the quality of circulating drugs to applicable standards. They have BPOM (Food and Drug Supervisory Agency) in Indonesia, which can regulate drug quality standards and their production. Because drugs produced locally must be guaranteed quality and safety, which cannot be equated with other commodities. Currently, the number of pharmaceutical industries in Indonesia is more than 200, consisting of 4 (four) BUMN (Biofarma, Indofarma, Kimia Farma, and Phapros), 24 multinational companies, and 190 national private companies. However, the current domestic industry is more inclined to move on to industrial formulations or manufacture finished drugs. Meanwhile, medicinal raw materials are still imported with a percentage of 95%, and most of the raw materials are imported from China, Europe, and India. Furthermore, solutions and efforts that the Government can take are sought to facilitate and protect domestic production from competitiveness. The long-term goal to be achieved is to reduce dependence on imported medicinal raw materials to improve the domestic economy and the standard of living of many people. The results of this study are expected to find the right form of regulation in protecting medicinal raw materials that are useful in increasing competitiveness and the domestic economy. The benefits of this research are expected to be able to contribute to the Indonesian Government and business actors to improve the domestic economy. This study uses a normative juridical method supported by empirical juridical, as well as a study using a qualitative juridical approach to Economic Law, Company Law, and Health Law.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Gandhi Pharmacista
AU  - Virly Vidiasti Sabijanto
PY  - 2023
DA  - 2023/01/25
TI  - Protection of Drug Raw Materials Through Price Standardization as a Business Rule in Supporting Competitive Local Drug Production
BT  - Proceedings of the 3rd International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2022)
PB  - Atlantis Press
SP  - 689
EP  - 698
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-93-0_81
DO  - 10.2991/978-2-494069-93-0_81
ID  - Pharmacista2023
ER  -