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Indonesia's Healthcare Reforms Create Opportunities But Also Present New Market Access Hurdles for the Multinational Pharmaceutical Industry
Date:8/5/2013

BURLINGTON, Mass., Aug. 5, 2013 /PRNewswire/ -- Decision Resources, one of the world's leading research and advisory firms for pharmaceutical and healthcare issues, finds that Indonesia's rapidly evolving healthcare reforms, regulatory requirements, and political realities offer significant challenges as well as attractive opportunities for research-based pharmaceutical companies. In 2012, two-thirds of the Indonesian population was covered by some form of health insurance, which will be expanded to all of its citizens by 2019, under the government's bold plans for a national health insurance (NHI) system that comes into effect from 2014.

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The Indonesia: Market Access Tracker service finds that, although NHI will provide greater access to medicines to Indonesia's vast population, the roll-out of NHI will also bring with it downward pressures on pricing and reimbursement of patent-protected pharmaceuticals. Existing government-funded insurance offers limited coverage of innovative medicines, and the level of coverage of originator brands in the NHI system remains uncertain. In 2013, the government introduced regulations for systematic health technology assessment in evaluating new medical interventions under the NHI to support rational drug use, and also signaled its intention to subject branded medicines to new price-control mechanisms.

The findings also reveal that multinational pharmaceutical companies are concerned about protectionist government policies in Indonesia, including local manufacturing requirements for drug registration, which are designed to develop a strong domestic pharmaceutical industry. Nevertheless,
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SOURCE Decision Resources
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