The Problem Of The Medical Device Mafia, The Boss Of The BUMN Pharmacy Holding: We Will Build A Raw Material Factory

Illustration. (Photo: Ministry of BUMN)

JAKARTA - In the midst of the corona virus pandemic or COVID-19, which is increasingly widespread, an issue has emerged that there is a mafia for medical devices (Alkes) and drugs. The mafia is said to not think about the independence of the national industry.

This issue first emerged, after Minister of State-Owned Enterprises Erick Thohir revealed that 90 percent of raw materials for production of medical devices and medicines are imported. Meanwhile, according to him, Indonesia can produce its own. He asked all parties not to make this great country continue to depend on imports.

Director of Bio Farma Honesti Basyir spoke about this issue. According to him, the problem of medical equipment and medicine mafia was present during the COVID-19 pandemic due to higher demand than supply.

"There is a shortage of supply. Moreover, the export-import process is not running smoothly, because each country imposes restrictions," he said, during a virtual hearing (RDP) with Commission VI, in Jakarta, Tuesday, April 21.

Meanwhile, said Honesti, the high demand for imported raw materials is due to the unavailability of basic raw materials for medicines in Indonesia. According to him, these basic raw materials are generally produced by basic chemical companies. However, the problem is that this raw material is not produced in Indonesia.

"Raw materials are admittedly more than 90 percent of imports, the problem of raw materials is not pure pharmaceuticals only because the problem is upstream, this is the basis for which we have an interest. What we make is active ingredients, basic chemical raw materials. If it is already established outside, it is different from Indonesia, "he explained.

Honesti said, to solve the problem of medical and drug mafia mafia in Indonesia, the company which is included in the pharmaceutical BUMN holding has emphasized that it will start to suppress imports of medicinal raw materials in 2021. The step taken by state-owned companies is to produce the raw materials for the drugs themselves.

The state-owned pharmaceutical company, said Honesti, took the initiative to build its own raw material factory through PT Kimia Farma Tbk (KAEF). Kimia Farma and PT Indofarma Tbk (INAF) are members of the holding under Bio Farma.

Honesti said, with this effort, it is expected that there will be a reduction in dependence on imports by 75 percent next year. This means that it is reduced by 15 percent from the current condition of around 90 percent of imports.

However, continued Honesti, these efforts need not only be carried out by state-owned pharmaceutical companies but also by hundreds of other private pharmaceutical companies. Moreover, considering the number of pharmaceutical manufacturers in the country there are 200 companies. Meanwhile, this state-owned company only controls 7 to 10 percent of the national market share.

In addition, said Honesti, government efforts are also needed to encourage the development of the basic chemical industry in the country to meet the need for pharmaceutical raw materials.

Honesti explained that his party had made a roadmap or road map regarding this matter. He said the government needed to motivate the basic chemical industry to start thinking about pharmaceutical raw materials.

"KPI (key performance index) should not only go to BUMN pharmaceuticals but all Indonesian pharmaceuticals can at least produce raw materials for their own products, it can also be collaborated. Even if BUMNs, even though the full effort of speed in 2021 can only be less (from) 90 percent to 75. percent. So to get 0 percent, other players need to cooperate with the production of raw materials, "he said.

BUMN Not Involved

Regarding the mafia for medical equipment and medicine procurement, Honesti believes that pharmaceutical SOEs will not act as a mafia for medical devices and medicines, because they have an agent of development function.

As an example of masks, said Honesti, the only company that still keeps the price of masks at the same price is Kimia Farma, and there are restrictions on their purchases.

Until the end of March, he continued, Kimia Farma was still selling masks at a price of IDR 2,000 per sheet. Maintaining prices is an effort so that people get an adequate supply of masks. However, because his party only acts as a distributor and not a producer, he hopes that there will be supply certainty from the principal.

"We are trying to make a direct deal with the manufacturer. We are assisted by friends from the Indonesian Embassy in China, India and several countries of origin of high-tech medical equipment," he explained.

DPR Asked for Transparent Medical Devices and Medicines

Previously, Deputy Chairman of Commission VI Aria Bima highlighted the problem of the medical device mafia. In a joint hearing with BUMN Pharmacy, he asked for a transparent explanation of the procurement and distribution process for medical devices so that there would be no loopholes for the mafia.

Aria also asked BUMN Pharmacy to prepare anticipatory steps to avoid this mafia of medical devices and drugs. Moreover, according to him, it would be unethical for anyone to take advantage of the situation in the midst of a catastrophic virus outbreak that occurred in this country.

"This meeting wants an answer from the holding director for certainty regarding how to deal with this which is of course passed down to each of its subsidiaries," he said.

Transparency regarding the procurement of medical devices and medicines, said Aria, is to provide information to the public. This is because this issue is also detrimental to the DPR.

"So that the public knows. It is even accused of collaborating with politicians. Commission VI did not get involved at all regarding the procurement of medical devices," he said.