ICW Alleges Conflict of Interest in High PCR Test Prices

TEMPO.CO, Jakarta - Indonesia Corruption Watch (ICW) suspected a potential conflict of interest in the high prices of polymerase chain reaction or PCR tests in the country. The graft watchdog highlighted the position of the Director-General of Health Services at the Health Ministry, Abdul Kadir, as the President Commissioner of state-run pharmaceutical firm Kimia Farma.

Abdul Kadir inked Circular No. HK.02.02/I/3713/2020 that set the highest price ceiling of the swab test at Rp900,000 on October 5, 2020. A few days ago, the government lowered the price cap to Rp495,000. Abdul Kadir was appointed as President Commissioner of Kimia Farma on April 28, 2021.

"Our simple question is, how can someone who makes a regulation on PCR prices occupy the position of President Commissioner at the SOE Kimia Farma that also acts as a PCR service provider?” said ICW researcher Wana Alamsyah in an online discussion on Friday, August 20.

“There is likely a reluctance to carry out the evaluation because if we look at the potential for this PCR income, the value is massive,” said Wana.

ICW noted that the potential profit for PCR service providers calculated from October 2020-August 2021 reached Rp10.46 trillion. The statement, however, was still an assumption, he added. “We certainly need to challenge the Ministry of Health's argument in this regard,” he said.

Regarding the potential conflict of interest of Abdul Kadir, ICW suspected there were at least two violations against the law, namely Article 17 of Law 25/2009 on Public Services and Article 33 of Law 19/2003 on SOE.

“This means the Health Service DG is the executor for public services. And when Abdul Kadir as the Health Service DG holds a double position as commissioner, of course, it is against the public service law,” Wana explained.

Article 33 of Law 19/2003 on SOE also notes that members of the commissioner board are prohibited from holding concurrent positions as members of the board of directors at SOEs, regionally-owned companies, privately-owned companies, or other positions that can cause conflicts of interest.

ICW argued that the normalization of conflicts of interest in the era of President Joko “Jokowi” Widodo has had a serious impact on governance and public interest. “And unfortunately this conflict of interest issue is not considered as an urgent matter to be handled seriously,” said Wana.

Read: Jakarta Prepares to Set New Ceiling Price of PCR Tests following Jokowi's Order

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