Though more than 1,700 hospitals have signed up to participate in the scheme, the low reimbursement rates offered by the government will likely dissuade many private facilities from joining, resulting in overcrowding of public institutions.
While the introduction of universal healthcare may seem like a prime opportunity for foreign pharmaceutical companies, it is unlikely that they will have much of a role -- at least initially. The program will mostly provide coverage for generic drugs, not branded pharmaceuticals. Generics are widely accepted by Indonesians. There will also be significant government pricing and reimbursement pressure on both generic and patent-protect drugs, potentially further reducing potential opportunities.
Related Articles:
1) Indonesia Pharma Market 2014 Review
2) Healthcare Policy in Indonesia
3) Drug Registration in Indonesia
4) Pharmaceutical Company in Indonesia
5) Challenges for Drug Companies in Indonesia
