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Parr 1 Said that the fulfillment of the national drug is the highest in Southeast Asia.

Drug manufactures consists of 204 national companies, 26 foreign companies in Indonesia and 4 stateowned. the needs of drugs in Singapore is still largely imported. No country is capable of fulfilling the needs of raw material for medicine independently. economic value of production to reduce the selling price is still be a major consideration. The Ideal ratio of domestic compliance of raw material for medicine and import cant be determined overall, but must be seen case by case, depending on the type of raw material for medicine. some literature suggests, domestically should produced 60% of raw material for medicine in this year, the government is targeting production of raw material for medicine in the country reached 15%. Increase the portion of the domestic raw material for medicine is expected to grow 5% per year until reached 25% in 2014. The raw material for medicine were most needed and most imported are antibiotics and paracetamol. The government cant force the state-owned (BUMN) to producing raw material for medicine because they are open company. Parr 2 production The stages of production raw starting from chemical

material of


industry base, intermediate, and industrial raw material for medicine. Right now, ministry of Industry 're initiated the basic chemical industry pharmaceutical industry choose to import raw materials because it cost are cheaper. import considerations purely for economic reasons. for ability, actually Indonesia could make raw material for medicine if the production of pharmaceutical raw materials in the country wants to be developed and increased of production, the producers do not only rely on the domestic pharmaceutical industry, they should be able to find the export Market. government is seeking tax reduction incentives for Indonesian industry of raw material for medicine. These efforts are constrained by the rule that says tax reduction is allowed only for HIV drugs and vaccines but, the provision of incentives are considered do not give change for the industry raw material for medicine. in global competition, efficiency and market expansion is the key tothe success of the industry raw material for medicine. Parr 3 generic drugs related to the use of generic drugs is still low, linda hope that mindset and perspective of health workers and consumers against generic drugs is not a big problem in 2014. Generic drugs are still Not qualified because the price is cheap. Its cheap because the promotional costs sre dispensed and the price is determined by government.

Now, The rupiahs value of national generic drugs currently contribute 8-11% of the national drug sales. But, sales volume has reached 38% of the national drug sales. in developed countries, the volume of generic drugs that are used reached 70-80%. The consumption of generic drugs for chronic diseases, increase until it reaches 60-70%. Overall, average consumption of generic drugs only 38%. use of generic drugs is expected to increase when universal coverage for health financing occur in 2014. At that years, volume of generic drugs is estimated to reach 90% of the national drug consumption.