SOEs Minister Says Private Vaccination Not Commercialized

TEMPO.CO, Jakarta - State-owned Enterprises (SOEs) Minister Erick Thohir on Wednesday mentioned the 15-20 percent profit margin from the private vaccination program touted as the ‘gotong-royong vaccination’. The target of this Covid-19 inoculation is employees of private firms. 

He claimed that there is no commercialization in the program initiated by the Indonesian Chamber of Commerce and Industry (Kadin), and asked the people to not think that way. 

“Don’t let there be such ideas as if the SOEs are commercializing the vaccines,” said the minister on May 19.

Erick Thohir did not reveal the actual cost of the vaccines bought by Bio Farma, nor did he explain where the profit margin comes from, which was mentioned in the Health Ministry’s official announcement on the private vaccination program. 

Previously on May 11, Health Minister Budi Gunadi Sadikin set the purchase price of Sinopharm vaccines and the appointment of state-pharmaceutical firm Bio Farma. The price was set at Rp321,660 per dose, which is the highest price that can be bought by a private company, with the lowest price set at Rp117,910 per dose. The prices include the distribution cost but exclude the value-added tax (PPN).

“It includes a 15 percent profit margin but not  including the PPN,” the health ministry letter states. 

Moreover, Erick Thohir asked the people to avoid seeing this issue from one viewpoint, considering that the government had spent a budget up to Rp77 trillion to procure Covid-19 vaccines that are freely given to people in the country. 

Read: Govt Won't Evaluate Price for Covid-19 Vaccine in Gotong Royong Program

FAJAR PEBRIANTO