Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia

Background Since Indonesia implemented one of the world’s largest single-payer health insurance schemes in 2014, the price of many common medicines has fallen dramatically. Industry groups warn unsustainably low prices threaten quality, while the government says medicines remain overpriced. We inves...

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Main Authors: Elizabeth Pisani, Ayu Rahmawati, Yusi Anggriani, Vinky Maria, William Nathanial Tjandrawidjaya, Prih Sarnianto
Format: Article
Language:English
Published: BMJ Publishing Group 2025-05-01
Series:BMJ Global Health
Online Access:https://gh.bmj.com/content/10/5/e015416.full
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author Elizabeth Pisani
Ayu Rahmawati
Yusi Anggriani
Vinky Maria
William Nathanial Tjandrawidjaya
Prih Sarnianto
author_facet Elizabeth Pisani
Ayu Rahmawati
Yusi Anggriani
Vinky Maria
William Nathanial Tjandrawidjaya
Prih Sarnianto
author_sort Elizabeth Pisani
collection DOAJ
description Background Since Indonesia implemented one of the world’s largest single-payer health insurance schemes in 2014, the price of many common medicines has fallen dramatically. Industry groups warn unsustainably low prices threaten quality, while the government says medicines remain overpriced. We investigate the relationship between the price and quality of essential medicines and the affordability of medicines paid for out of pocket.Methods We bought over 1000 samples of five common prescription medicines—allopurinol, amlodipine, amoxicillin, cefixime and dexamethasone—online and from randomly selected pharmacies and health facilities in four regions across Indonesia. We recorded the price paid and tested samples for quality using high-performance liquid chromatography. We compared prices with the median and lowest prices for each medicine, tested for correlation between quality and price, and calculated affordability compared with the district minimum wage.Results Medicines available in the public procurement system were less likely to fail quality testing than other brands/varieties (4.2% vs 8.3%) but the difference was not statistically significant (p=0.086). There was no other relationship between quality and price, or branded status. Branded generic medicines sold at a large variety of price points, from 0.3 to 18.6 times the median price for the medicine and dose (IQR: 0.9–5.0, median 1.4). Unbranded generics traded in a narrower range (range 0.1–2.6; IQR 0.6–1.0, median 0.8). Medicines were most expensive in the region with the lowest wages, but even there, medicines selling at the 25th percentile of available prices cost a maximum of 0.7% of 1 day’s wage for a course.Conclusion In every study district, we found that Indonesian patients working at the minimum wage could access affordable, quality-assured versions of all studied essential medicines. More expensive brands were also widely available, but there was no relationship between price and quality.
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spelling doaj-art-70669eb2bed44414a305774df875e8012025-08-20T01:52:23ZengBMJ Publishing GroupBMJ Global Health2059-79082025-05-0110510.1136/bmjgh-2024-015416Are quality medicines affordable? Evidence from a large survey of medicine price and quality in IndonesiaElizabeth Pisani0Ayu Rahmawati1Yusi Anggriani2Vinky Maria3William Nathanial Tjandrawidjaya4Prih Sarnianto5Faculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaFaculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaFaculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaFaculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaFaculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaFaculty of Pharmacy, Pancasila University Faculty of Pharmacy, Lenteng Agung, Jakarta Selatan, IndonesiaBackground Since Indonesia implemented one of the world’s largest single-payer health insurance schemes in 2014, the price of many common medicines has fallen dramatically. Industry groups warn unsustainably low prices threaten quality, while the government says medicines remain overpriced. We investigate the relationship between the price and quality of essential medicines and the affordability of medicines paid for out of pocket.Methods We bought over 1000 samples of five common prescription medicines—allopurinol, amlodipine, amoxicillin, cefixime and dexamethasone—online and from randomly selected pharmacies and health facilities in four regions across Indonesia. We recorded the price paid and tested samples for quality using high-performance liquid chromatography. We compared prices with the median and lowest prices for each medicine, tested for correlation between quality and price, and calculated affordability compared with the district minimum wage.Results Medicines available in the public procurement system were less likely to fail quality testing than other brands/varieties (4.2% vs 8.3%) but the difference was not statistically significant (p=0.086). There was no other relationship between quality and price, or branded status. Branded generic medicines sold at a large variety of price points, from 0.3 to 18.6 times the median price for the medicine and dose (IQR: 0.9–5.0, median 1.4). Unbranded generics traded in a narrower range (range 0.1–2.6; IQR 0.6–1.0, median 0.8). Medicines were most expensive in the region with the lowest wages, but even there, medicines selling at the 25th percentile of available prices cost a maximum of 0.7% of 1 day’s wage for a course.Conclusion In every study district, we found that Indonesian patients working at the minimum wage could access affordable, quality-assured versions of all studied essential medicines. More expensive brands were also widely available, but there was no relationship between price and quality.https://gh.bmj.com/content/10/5/e015416.full
spellingShingle Elizabeth Pisani
Ayu Rahmawati
Yusi Anggriani
Vinky Maria
William Nathanial Tjandrawidjaya
Prih Sarnianto
Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
BMJ Global Health
title Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
title_full Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
title_fullStr Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
title_full_unstemmed Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
title_short Are quality medicines affordable? Evidence from a large survey of medicine price and quality in Indonesia
title_sort are quality medicines affordable evidence from a large survey of medicine price and quality in indonesia
url https://gh.bmj.com/content/10/5/e015416.full
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