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.