Building Strategic Partnerships with Stakeholders for Health Transformation
Improved access to innovative medicines and effective preventive health policies has the potential to reduce economic losses by up to USD 130 billion, or the equivalent of IDR 2 trillion per year
Indonesia has access to only 9% of innovative medicines launched globally, the lowest among Asia-Pacific countries.
Transforming the health sector to support medical innovation has become an urgent need to build an independent and sustainable health system
Jakarta, 13 November 2024 – The International Pharmaceutical Manufacturers Group (IPMG), an association representing leading research-based multinational biopharmaceutical companies operating in Indonesia, today issued a call to action to develop a national strategy that can strengthen Indonesia's health system and drive economic growth through expanded access to innovative medicines. Currently, Indonesia's access to new medicines is limited to just 9%, one of the lowest in the Asia-Pacific region. This condition leads to suboptimal health quality and negatively impacts productivity levels, potentially causing economic losses of up to USD 130 billion, or more than 2,000 trillion rupiah, per year. The call to action presented by IPMG in the form of a manifesto outlines a roadmap for health system transformation and calls for effective, sustainable partnerships between the government and all health partners.
IPMG Chairman Dr. Ait-Allah Mejri, said, "Access to innovative medicines is not just a health issue, but also a national economic priority. By developing a cohesive strategy, Indonesia can reduce productivity losses caused by disease and drive growth across various economic sectors. IPMG's manifesto highlights crucial steps to achieve both goals, and we are committed to working together with the government and stakeholders to realize them."
Call for Policy Reform to Strengthen Indonesia's Competitiveness
To address the limited availability and access to new medicines, IPMG is encouraging synergy among health sector stakeholders to form a dedicated task force to develop and implement a "National Strategy for Innovative Medicines and Vaccines." This strategy aims to boost Indonesia's competitiveness in the Asia-Pacific region while building a resilient health infrastructure that can drive innovation and expand access to healthcare services. In addition, IPMG is also calling for a review of the current drug negotiation and procurement system at BPJS Kesehatan (Indonesia's national health insurance body), favoring a model that ensures transparency, efficiency, and sustainability.
Recognizing the importance of strategic investment in the health sector, IPMG also emphasizes the need to strengthen the regulatory framework and improve the Health Technology Assessment (HTA) process. Industry involvement in HTA and capacity-building initiatives at national HTA institutions are considered important steps toward creating a sustainable health sector.
Collaboration for Timely Access to Healthcare
Access for BPJS Kesehatan beneficiaries to some new medicines generally takes an average of 71 months from their first global launch. This delay causes around 2 million Indonesians to have no choice but to seek treatment abroad every year, contributing to foreign exchange losses of up to USD 11.5 billion (IDR 180 trillion).
A Shared Responsibility for Change
IPMG's manifesto further emphasizes the importance of strategic partnerships and investment in the health sector, and calls for better funding for the health sector to improve resilience and efficiency.
IPMG Board Member and Head of the Industry Policy Task Force, Idham Hamzah, stated, "We believe that a well-funded health sector can reduce foreign exchange losses from overseas medical treatment, boost productivity, and create an independent health system. This is a mission for Indonesia's long-term prosperity that can only be pursued together."
Chair of the Cancer Information Support Center (CISC), Aryanthi Baramuli, added, "Patients in Indonesia face significant delays in accessing new treatments. In addition, many of them face financial hardship due to out-of-pocket payments for medicines not covered by BPJS. We call on the government to work together to address these barriers and prioritize health insurance coverage for medicines that can extend the life expectancy of patients who need them."
A Vision for Sustainable Health and Economic Growth
IPMG hopes this manifesto will foster constructive dialogue and set the direction for the transformation of Indonesia's health system. Under this new administration, IPMG is optimistic that shared commitment and greater investment in new medicines will help Indonesia become a regional health hub and realize the great potential of the Indonesian economy.
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About IPMG
The International Pharmaceutical Manufacturers Group (IPMG) represents 27 leading research-based pharmaceutical companies committed to advancing the health sector in Indonesia through innovation and collaboration. IPMG partners with the government, healthcare professionals, and patients to ensure access to high-quality medicines that improve lives and drive economic growth.
Media Contact
Atika Gadis Parengkuan
Mobile: 08111 893 648
Email: Gadis.Parengkuan@ipmg-online.com
