Due to the move away from visiting doctors towards self medication, patients are easily duped into purchasing counterfeit products from small unregistered outlets and street sellers. Trademark No change. Although no real progress has been made, the Dir. Other Issues Indonesia does not require foreign companies in this sector to have local partners, but a manufacturing presence is required to hold licenses, registrations and import. The government generic market remains exclusive to selected government and local companies.
Pharmaceutical manufacturers can now distribute directly to the trade and hospitals.
However, due to commercial risk and the need for large software investment, none have gone that route. Tax treatment of all companies remains arbitrary but U.S. companies are particularly hard hit due to Business Conduct Policy. Other areas of possible deregulation for the industry are under discussion with the Ministry of Health. Because of the chaotic political situation in Jakarta and the rest of Indonesia at the end of 1998, it is very difficult to pose a realistic estimate of the increase in foreign sales that might accrue to PhRMA member company affiliates, even if the aforementioned problems were to be rectified in the near term. For all the aforementioned reasons, PhRMA believes that Indonesia should be listed as a Priority Watch Country under Special 301 in 1999.