KPPU Suspects Any Practice Of Drug Oligopoly.

SURABAYA (Sl) KPPU suspects any oligopoly practices in drug price fixing in Indonesia. It seen from inappropriate price component applies today.

“One of the triggers is mostly drug business actors who apply amount of distribution and promotion values to dominate production cost,” said Commissioner of KPPU Mr. Ahmad Ramadhan Siregar in Surabaya, yesterday.

He said, cost of drug raw material is only around 10% from total production cost. While distribution and promotion cost can reach 50-90%. Even, he said, there is a cost of raw material can reach up to 8% from whole production cost. “This act is already beyond the normality,” he said.

With the composition of price formation, he added, during this time right for national drug market to cheaper price access has not been realized. “This condition seen from the national case we handle where the structure of inappropriate drug price was found,” he said.

As a consequence, he said, people are more inflicted with high price when purchase drug. On the other hand, this situation is the fault for entire stakeholders.

Source: Seputar Indonesia Daily Newspaper, 13 April 2010