In 2014, Indonesia introduced National Health Insurance. One of the goals of the new program was to increase the use of generic, rather than expensive proprietary pharmaceuticals. In 2011, generic use was low at 14% whereas policymakers and purse-string holders felt that if the use of generics was broadened much greater savings could be made. A large survey of patients revealed that information from one’s physician has the biggest effect on whether or not patients opt for a generic version of the medication they require. Additionally, experience with a given pharmaceutical also has a significant impact on whether or not the generic drug is chosen in preference to the proprietary product.
Generic drugs are essentially identical to the products offered by large drug companies even after the drugs’ patents have long expired with one important difference that has an even more significant effect in the developing world – they are cheaper. It is critical that policymakers and healthcare workers push for greater use of generics products in order to cut the healthcare bill and allow healthcare to be more widely available through those cost savings.
Amelia, A. and Ronald, R. (2018) ‘Generic drug in Indonesia: why physicians and pharmacists matters’, Int. J. Monetary Economics and Finance, Vol. 11, No. 3, pp.307–315.
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