PROTECTION OF DRUG RAW MATERIALS THROUGH PRICE STANDARDIZATION AS A BUSINESS RULE IN SUPPORTING COMPETITIVE LOCAL DRUG PRODUCTION
Gandhi Pharmacista, S.H., M.H., Virly Vidiasti Sabijanto, S.H., M.Kn.

Faculty of Law, Pasundan University

Abstract

One of the contents of Volume VI^s Economic policy package is related to cutting licenses for importing drugs and raw materials. The reason is that the price of drugs is very expensive, because the majority of the raw materials are imported from abroad. Almost 95% of medicinal raw materials are still imported, this makes drug prices expensive. It is necessary to have the independence of the domestic pharmaceutical industry to reduce drug prices and reduce dependence on imported medicinal raw materials. This is not impossible because the pharmaceutical industry is included in Indonesia^s priority industry in 2015-2035. Efforts are needed to reduce dependence on imported medicinal raw materials (BBO) to support the achievement of drug independence in Indonesia. It is hoped that by using domestic medicinal raw materials, the quality of circulating drugs is adjusted according to applicable standards. In Indonesia, they have BPOM (Food and Drug Supervisory Agency) which can regulate drug quality standards and their production. Because drugs that are produced locally, safety quality and efficacy must be guaranteed, which cannot be equated with other commodities. Currently, there are more than 200 pharmaceutical companies in Indonesia, consisting of 4 (four) BUMN (Biofarma, Indofarma, Kimia Farma, and Phapros), 24 multinational companies, and 190 national private companies. However, the domestic industry is currently more inclined to move in the formulation industry or the manufacture of finished drugs. Meanwhile, medicinal raw materials are still imported with a percentage of 95%, and the majority of raw materials are imported from China and Europe, as well as India. Furthermore, solutions and efforts that can be taken by the Government are sought to facilitate and protect domestic production so that they are competitive. The long-term goal to be achieved is to reduce dependence on imported medicinal raw materials, so that it can improve the domestic economy and can improve the standard of living of many people. The results of this study are expected to find the right form of regulation in protecting medicinal raw materials that are useful in increasing competitiveness and the domestic economy. The benefits of this research are expected to be able to contribute to the Indonesian government and business actors in an effort to improve the domestic economy. This study uses a normative juridical method with the support of empirical juridical, as well as a study using a qualitative juridical approach to Economic Law, Company Law, and Health Law.

Keywords: Standard Price of Drug Raw Material, Business Rules, Domestic Economic Competitiveness

Topic: Law on Bussiness Competition, and Prohibition of Monopoly