Jokowi Aims to Strengthen Health Industry, Maintain Medical Costs

TEMPO.CO, Jakarta - President Joko Widodo or Jokowi ordered his cabinet to finalize coordination to develop the Indonesian health industry. The head of state wants Indonesia to be resilient against major outbreaks, such as the COVID-19 pandemic.

According to Health Minister Budi Gunadi Sadikin, Jokowi said in today’s internal meeting that he aimed to maintain an affordable medical equipment and medicine price range. The government highlights that the high prices of medicines and medical equipment do not parallel the progress of the health industry in Indonesia.

"He also ordered the development of domestic medicines and medical equipment industry so Indonesia can be more resilient in case of another pandemic,” he said. 

The Minister of Health advised Jokowi regarding some less-than-efficient trade routes. He highlighted that industrial governance ought to be more transparent and open to avoid unnecessary medical price hikes. 

Jokowi gave two weeks for his cabinet to coordinate on strengthening the Indonesian health system. Budi Gunadi said that Minister of Finance Sri Mulyani, Minister of Industry Agus Gumiwang Kartasasmita, and Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan would be involved.

"We have to coordinate with the Ministry of Industry who will regulate it, and propose the policy to the Ministry of Finance,” said the minister regarding the high prices of medicine and medical equipment.

On a separate occasion, Agus Gumiwang said he needed to study how to improve the health industry so people would get affordable health services. "Secondly, we must accelerate investment in the health sector, including medicines and medical equipment," he said.

Another matter discussed at the internal meeting was health industry tax. The government wants a more efficient health tax but there was no decision on tax relaxation during the meeting.

"We want (the tax) to be simpler but without disturbing government revenues because cash flow is also important," said Budi Gunadi.

DANIEL A. FAJRI

Editor’s Choice: Jokowi Asks Minister Luhut, Sri Mulyani to Review Coal Royalty Rates for IUPK Holders

Click here to get the latest news updates from Tempo on Google News