INDONESIAN DRUG MANUFACTURERS THREATEN PRICE HIKE
Drugmakers in Indonesia have announced a possible increase in manufacturer
prices of 510%, unless the Indonesian rupiah's decline against international
currencies reverses in the next two weeks.
The currency's value is an important factor in Indonesia's drug market, as around
90% of the raw materials used in local drug production are imported. According
to local trade association GP Farmasi, raw materials account for 30% of drug
production costs in the country.
The association has stated that a final decision on price lies with the individual
pharmaceutical companies, although it added that current prices could be maintained
through increased efficiency and a reduction in promotional spending. High global
fuel prices and concerns over possible disinvestment by foreign interests have
been blamed for the rupiah's recent slump.
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21Oct